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Laxmi Goldorna IPO subscribes 1.15 times amid challenging mkt; to list on NSE EMERGE

Ahmedabad-based Laxmi Goldorna's IPO received an enthusiastic response from investors amid challenging market conditions with the issue getting subscribed by 1.15 times in NSE EMERGE platform.

The IPO of Laxmi Goldorna, which is into the business of gold jewellery and affordable housing, closed on Friday. The company would be listed on NSE EMERGE after the lock-down is eased, according to a release.

Beeline Broking managed the issue, it said.

Small and Medium Enterprises (SMEs) have been impacted the most due to the COVID-19 pandemic-related lockdown, and facing deep-rooted liquidity issues.

However, Laxmi Goldorna has been able to garner bids of Rs 9.52 crore out of the issue size of Rs 8.28 crore. The issue received bids for 63,28,000 shares compared to the issue size of 55,20,000.

Beeline Broking said that Laxmi Goldorna's IPO not only faced weak market sentiment, but it was also very difficult to manage bidding and blocking of funds by the banks, as these banks are currently guided to provide only essential services in these challenging times.

Proceeds are going to be channelised into working capital of Laxmi Goldorna's low and medium housing real estate projects in Ahmedabad.

A total of 208 companies are listed on NSE EMERGE and collectively raised more than Rs 3,219 crore. During the last financial year 2019-20, as many as 13 SME companies had got listed.