Laxmi Organic zooms 13%; company raises Rs 259 crore via QIP

Laxmi Organic share price NSE: Laxmi Organic shares zoomed as much as nearly 13 per cent in morning trade to touch the day's high of Rs 306 on NSE on Wednesday, October 11, after the company raised Rs 259 crore through qualified institutional placement (QIP). The Goenka Group's flagship company’s board approved the allocation of 96.25 lakh shares of face value of Rs 2 each to eligible qualified institutional buyers at an issue price of Rs 269.2 per equity share, a discount of 4.97 per cent to the floor price of Rs 283.27, according to an exchange filing from the company. Laxmi Organic shares ended 11.01 per cent or Rs 29.85 higher at Rs 301.05 on NSE. 

Here's how the counter moved on Wednesday: 

Source: NSE

The QIP issue opened on October 5 and closed on October 10. The paid-up equity share capital of the company has increased from Rs 53.1 crore, consisting of 26.55 crore shares, to Rs 55 crore, consisting of 27.52 crore equity shares.

"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 Fund Raising 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 in its regulatory filing said. 

What does Laxmi Organic do?

Laxmi Organic Industries is a specialty chemical manufacturer that offers ingredients and solvents catering to diverse end-market sectors like pharmaceuticals, agrochemicals, food packaging, and pigments.

Laxmi Organic: Past performance

Laxmi Organic's stock has declined nearly 10 per cent in the last year (October 11, 2023). In comparison, the benchmark Nifty50 has gained nearly 17 per cent during the window.

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