Laxmi Organic Industries IPO: So far in 2021, the IPO has earned good money to the investors. If you are still thinking of investing in an IPO (Initial Public Issue), then there is a good chance for you. The IPO of Laxmi Organic Industries, a specialty chemical manufacturer, is opening on Monday, 15 March. The company has fixed a price range of Rs 129-130 per share for its initial public offering (IPO) of Rs 600 crore. The company said that Rs 300 crore worth of new shares will be issued in its initial public issue while shares worth Rs 300 crore will be offered for sale on behalf of its promoter Yellow Stone Trust.
Anil Singhvi gave this opinion on this IPO
According to Anil Singhvi, managing editor of Zee Business, investors should invest money for good listing gains in this IPO. Investors can get up to 50 percent listing gain. It is a very old and full-fledged company. In the long run, this company will give good profits. The valuation of this company is quite attractive. The growth outlook for this industry is also much better. The company will get a very good benefit from its expansion plan in the coming days. However, there is a problem of this company that there is not very good growth in revenue and margin.
IPO will be open for three days
According to the news, the company has said that it has privately planned 1,55,03,875 equity shares in consultation with its lead book-running managers, from which it has received a total of Rs 200 crore. This reduced the size of the new shares to be issued in the IPO from Rs 500 crore to Rs 300 crore. The company’s IPO will remain open for three days and will close on March 17. The IPO will open for anchor investors on March 12.
Use of IPO money
Mumbai-based Lakshmi Organics is a manufacturer of chemicals such as acetyl intermediates and specialty intermediates. The proceeds from the IPO will be used to use in working capital, to set up facilities for manufacturing new chemicals, to update existing units, and to purchase plant and machinery. The company has customers in 30 countries including China, Russia, Singapore, UAE, UK, and the USA.
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