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Grey market premium of Laxmi Organic Industries declined sharply by over 50% ahead of its listing on March 25. Earlier, the initial public offer of the specialty chemical firm got subscribed a whopping 106.79 times last week, largely driven by huge interest from institutional investors.
Abhay Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares said that the soft listing of Easy Trip Planners and correction in recently listed Heranba Industries had spoiled the sentiment of the primary market.
“The trend also looks downward for Laxmi Organic. Grey market premium of the company is hovering at around Rs 58-60 at present against Rs 130 at the time of finalising the price band,” Doshi added.
The public offer garnered bids for 3,47,67,42,330 shares against 3,25,58,138 shares on offer, as per NSE data. The portion for qualified institutional buyers (QIBs) was subscribed 175.43 times, non-institutional investors 217.62 times and retail individual investors (RIIs) 20.06 times.
The initial public offer aggregating up to Rs 600 crore comprised a fresh issue of up to Rs 300 crore and an offer for sale of up to Rs 300 crore. The price range was fixed at Rs 129-130 per share.
Laxmi Organic Industries had garnered Rs 180 crore from anchor investors. Net proceeds from the issue will be utilised for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units.
The company has a global presence with customers in over 30 countries, including China, the Netherlands, Russia, Singapore, United Arab Emirates, the UK and the US.