Laxmi Organic shares soar 26% in market debut

Laxmi Organic had raised Rs 300 crore from the IPO
Shares of Laxmi Organic Industries, a Mumbai-based specialty chemicals company, gained 26 per cent during their stock market debut on Thursday. Its stock finished at Rs 164, up Rs 34 over IPO price of Rs 130. The stock hit a high of Rs 174.6 and a low of Rs 143.25 on the NSE, where Rs 1,100 crore worth of shares changed hands.

IPO applicants were expecting the shares to gain even more. The weakness in the secondary markets ate into the listing day gains, said experts. Shares of previous two companies to make their stock market debut have slipped below their IPO price.

Laxmi Organic’s IPO had garnered 107 times subscription. The high networth individual portion of the IPO was subscribed 218 times and institutional investor portion was subscribed 175 times.

At Thursday’s close, the company is valued at Rs 4,325 crore. Laxmi Organic had raised Rs 300 crore from the IPO.

The company is a leading manufacturer of acetyl intermediates and specialty intermediates. It enjoys 30 per cent market share of the Indian ethyl acetate market.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel