Laxmi Organic shares surge 13% after raising ₹259 cr via QIP

Shares of speciality chemical manufacturer Laxmi Organic Industries Ltd surged as much as 12.8% to hit an intraday high of ₹305.90 apiece on the BSE after the company raised ₹259 crore via qualified institutional placement.

During the session on Wednesday, the share price of the company opened at ₹274.50, up 1.2% as against the closing price of the previous session at ₹271.50. At 12:47 pm, the share price of the chemical manufacturer was trading 10.20% higher at ₹298.80.

This is in line with the broader BSE Sensex which was trading 0.50% or 327.69 points higher at 66,407.05. At present, the share price of the company is trading 12.4% lower than the 52-week high of ₹340.70, which the company touched on October 11 last year. The share price of the speciality chemical manufacturer is trading at 34.79% higher than the 52-week low of ₹220.70, which the company touched on March 29 this year. During the session on Wednesday, the market capitalisation of the chemical manufacturer stood at ₹7,916.85 crore. At the time of filing of the report, more than 5.41 lakh shares exchanged hands on the counter as against the two-week average of 0.49 lakh shares.

According to the company, the issue opened on October 5, 2023 and closed on October 10, 2023.  

“In continuation of our earlier letter dated October 10, 2023, on the captioned subject, we wish to inform you that, in respect of the issue, the fundraising committee of directors at its meeting held today, i.e., October 10, 2023, approved the issue and allotment of 9,625,579 equity shares to eligible qualified institutional buyers at the issue price of ₹269.20 per Equity Share i.e. at a premium of ₹267.20 per equity share (which included a discount of ₹14.07 per equity share i.e. 4.97% of the floor price of ₹ 283.27 per equity share as determined in terms of SEBI ICDR Regulations), aggregating to ₹2,591.21 million, pursuant to the issue,” the company says in a regulatory filing.

“Pursuant to the allotment of Equity Shares in the Issue, the paid-up Equity Share capital of the Company stands increased from ₹ 531.15 million consisting of 26,55,76,954 Equity Shares to ₹ 550.41 million consisting of 27,52,02,533 Equity Shares,” it adds.

Incorporated in 1989, Laxmi Organic Industries is the Goenka Group’s flagship company and is in the business of manufacturing acetyl intermediates and speciality chemicals. The company manufactures ethyl acetate acetic acid and diketene derivative products (DDP) including esters, amides and arylides. It claims to have a capacity of more than 232 kTPA (kilotonnes per annum).