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laxmi organic ipo subscription status: Laxmi Organic IPO subscribed 2.62 times on Day 2 so far


NEW DELHI: The IPO of Laxmi Organic was subscribed 6.05 times on the second day of the bidding process on Tuesday. The IPO was subscribed 2.28 times on the first day.
The issue received 19,68,68,270 bids as of 5:00 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the band price.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities. ....

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Laxmi Organic IPO sails through within 3 hours of bidding


NEW DELHI: The IPO of Laxmi Organic was subscribed 2.28 times on the first day of the bidding process on Monday. The company plans to raise Rs 600 crore.
The issue received 7,42,26,635 bids as of 5 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the price band.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities. ....

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Laxmi Organic IPO: Laxmi Organic IPO opens on Monday. Should you go for it?


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NEW DELHI: Laxmi Organic, a manufacturer of industrial chemicals, is set to hit the primary markets on Monday. While the IPO has been touted as aggressively priced, a huge demand in the unofficial markets hints at bumper subscription.
Laxmi Organic has fixed the price band for its issue at Rs 129-130 per share. The Rs 600-crore issue would comprise issuance of fresh equity shares aggregating Rs 300 crore and an offer for sale (OFS) of shares aggregating up to Rs 300 crore.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side, given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities. ....

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