Laxmi Organic Industries raises Rs 2.59bn in equity share placement

Laxmi Organic Industries Limited, a leading chemical manufacturer, has successfully concluded its Qualified Institutions Placement (QIP) Issue. The company’s Fund Raising Committee of Directors announced that they have approved the allotment of 9,625,579 Equity Shares to eligible qualified institutional buyers. Each share was priced at ₹269.20, reflecting a premium of ₹267.20 per Equity Share, which even included a discount of ₹14.07 per share, amounting to 4.97% of the floor price of ₹283.27 per Equity Share as per SEBI ICDR Regulations. In total, this raised an impressive ₹2,591.21 million in funds for the company.

The Issue opened its doors to investors on October 5, 2023, and received an overwhelming response before closing on October 10, 2023. The company had previously communicated these important dates to its stakeholders through letters dated October 5 and October 10, 2023.

These newly issued Equity Shares, each with a face value of ₹2, have significantly increased the paid-up Equity Share capital of Laxmi Organic Industries Limited. Prior to this, the company had 26,55,76,954 Equity Shares, amounting to ₹531.15 million in paid-up capital. With the completion of this successful placement, the paid-up Equity Share capital now stands at ₹550.41 million, distributed among 27,52,02,533 Equity Shares.

This move is set to strengthen the company’s financial position and support its growth initiatives, ensuring a promising future for Laxmi Organic Industries Limited in the dynamic chemical industry.

Investors and industry experts are closely watching the developments, anticipating a positive impact on the company’s stock performance in the coming weeks.