Laxmi Organic Share Price Surges Over 8% Following Successful Fundraising

Laxmi Organic Share Price Surges Over 8% Following Successful Fundraising

VoM News Desk | October 11, 2023 | 04:02 PM IST | Breaking News | Follow on Google News

Laxmi Organic Share Price Surges Over 8% Following Successful Fundraising

Laxmi Organic Share Price Surges Over 8% Following Successful Fundraising

Laxmi Organic share price experienced a remarkable surge of over 8% during Wednesday’s trading session after the company successfully raised ₹259.1 crore via a Qualified Institutional Placement (QIP). The day’s trading for Laxmi Organic Industries Ltd began with the share price opening at an intraday low of ₹274.50 apiece on the BSE. The stock price touched an intraday high of ₹300.85.

Equity Share Allotment to Qualified Institutional Buyers

As per an exchange filing by the company, the Fund Raising Committee of Directors approved the issuance and allotment of 9,625,579 equity shares to qualified institutional buyers meeting the eligibility criteria. These shares were allotted at a premium of ₹267.20 per equity share, amounting to ₹269.20, at the meeting held on Tuesday, October 10.

QIP Timeline and ICICI Mutual Funds Participation

The QIP issue began on October 5 and concluded on October 10. It’s noteworthy that ICICI Mutual Funds purchased 48.24% of the QIP, reflecting substantial institutional participation in the fundraising.

Technical Analysis Indicates Positive Momentum

From a technical standpoint, Laxmi Organic stock price displayed significant positive momentum on the trading day, with prices surging by over 8% within the first hour of trading. This upward trend was accompanied by robust trading volumes, signifying healthy market activity. Additionally, this uptrend aligns with the influential 200-day Simple Moving Average (200SMA), which lends credibility to the overall trend.

Analyst’s Outlook and Support Levels

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, anticipates this upward movement to continue, with a potential upside target of 320 in upcoming trading sessions. In the event of price declines, support is likely to be encountered around the 280 mark.

Company Overview and Expansion

Laxmi Organics Industries Ltd is the flagship company of the Goenka Group, with interests spanning chemicals, paper, electricity, and education. The company is a prominent player in the Acetyls industry in India, with the capacity to produce 120,000 tonnes of Ethyl Acetate annually. Additionally, Laxmi produces 30,000 tonnes of acetaldehyde each year. With a branch in the Netherlands and a direct presence throughout Europe, the company aims to provide enhanced services to its overseas consumers.

VoM News Desk

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