Laxmi Organic shares soar 26% in market debut

The firm is a leading manufacturer of acetyl intermediates and specialty intermediates

Shares of Laxmi Organic Industries, a Mumbai-based specialty chemicals company, gained 26 per cent during their stock market debut on Thursday. Its stock finished at Rs 164, up Rs 34 over IPO price of Rs 130. The stock hit a high of Rs 174.6 and a low of Rs 143.25 on the NSE, where Rs 1,100 crore worth of shares changed hands.

IPO applicants were expecting the shares to gain even more. The weakness in the secondary markets ate into the listing day gains, said experts. Shares of previous two companies to make their stock market debut have slipped below their IPO price.

Laxmi Organic’s IPO had garnered 107 times subscription. The high networth individual portion of the IPO was subscribed 218 times and institutional investor portion was subscribed 175 times.

At Thursday’s close, the company is valued at Rs 4,325 crore. Laxmi Organic had raised Rs 300 crore from the IPO.

The company is a leading manufacturer of acetyl intermediates and specialty intermediates. It enjoys 30 per cent market share of the Indian ethyl acetate market.