Quote on Laxmi Organics Ltd. had come out with an IPO of Rs. 600 cr By Jyoti Roy, Angel Broking Ltd
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Below are Quote on Laxmi Organics Ltd. had come out with an IPO of Rs. 600 cr By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
Laxmi Organics Ltd. had come out with an IPO of Rs. 600 cr at a price band of Rs. 129-130 per share. The IPO was scribed by 106.8 times with the QIB and the NIB portion being subscribed by 175.4x and 217.6x respectively. The retail portion was subscribed by 20.1x. The company is the largest manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India with a diversified customer base. Given the strong growth prospects and reasonable valuations we had given a subscribe rating to the IPO. However at current levels the stock is trading at a P/E multiple of 51.3xFY20 EPS which is on the higher side as compared to peers. Hence we would recommend book profits at current levels.
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