Laxmi Organic IPO lists at premium; experts unveil this strategy to maximise profit

Laxmi Organic IPO listing: The stock has listed with a premium of Rs 26.20 on issue price of Rs 130. Laxmi Organic share price made its debut at Rs 156.20 on BSE. On NSE, the scrip started at Rs 155.50. On what should be the strategy for Laxmi Organic shareholders, stock market experts have said that those who have applied for the IPO for listing gains should book profit while those who bid for the long-term, should hold the stock.

Speaking on the Laxmi Organic share price outlook, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Those who invested in this IPO for listing gains, they are advised to book profit. However, for those, who want to maximise their gains they are advised to wait for the March quarter results of the company as good quarterly numbers can inject fresh and sharp momentum in the Laxmi Organic shares."

Saurabh Jain, AVP — Research at SMC said, "Long-term investors should not deviate from their investment goal as the company is very strong and its business is expected to remain intact in the next three to four quarters. In next two to three quarters there can be another 25-30 per cent rise from its current Rs 160 per stock levels."  

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The speciality chemicals manufacturer's public issue got subscribed 106.81 of the value offered. Before opening the IPO to the market, the company pulled in Rs 180 crore from anchor investors. The money will go towards Laxmi Organic working capital requirements and upgradation of existing units. Moreover, the company also plans on using the new capital to set up a manufacturing facility for fluoro speciality chemicals.