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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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Laxmi Organic raises ₹180 crore ahead of IPO - The Hindu BusinessLine


Laxmi Organic raises ₹180 crore ahead of IPO
March 12, 2021
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Laxmi Organic Industries Ltd, a Mumbai-based specialty chemicals manufacturer, has raised ₹180 crore from 15 anchor investors a day prior to the opening of its initial public offering (IPO).
The company allocated 1.38 crore shares at ₹130 per share on Friday, it informed the bourses.
Eight foreign portfolio investors who participated in the anchor were Nomura India Equity Fund, Abu Dhabi Investment Authority, Goldman Sachs, Kuber India (Plutus), Theleme India Master Fund, Malabar India Fund, Ashoka India Opportunities Fund, India Acorn Fund. These investors were allocated 78.46 lakh shares for about ₹102 crore.
Malabar India Fund and Ashok India Opportunities Fund have also invested ₹55 crore and ₹35 crore, respectively, in a Pre-IPO round last month. ....

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