Laxmi Organic share price surges over 8% on QIP fund raising; here's what analysts say

 

Laxmi Organic share price surges over 8% on QIP fund raising; here's what analysts say

Laxmi Organic share price surged over 8% on Wednesday's trading session after the company raised funds worth ₹259.1 crore via Qualified Institutional Placement (QIP). Laxmi Organic Industries Ltd share price opened at an intraday low of ₹274.50 apiece on BSE. Laxmi Organic share price touched intraday high of ₹300.85.

According to an exchange filing from the company, the Fund Raising Committee of Directors approved the issue and allotment of 9,625,579 equity shares to qualified institutional buyers who meet the eligibility requirements. The shares were allotted at a premium of ₹267.20 per equity share, or ₹269.20, at the meeting on Tuesday, October 10. The approval amounted to ₹259.1 crore.

The issue opened on October 5 and closed on October 10. ICICI Mutual Funds buy 48.24% of QIP. 

On the technical front, according to analysts, Laxmi Organic stock price has exhibited significant positive momentum today, with prices surging by over 8% within the first hour of trading. 

This upward trend is accompanied by robust trading volumes, signifying a healthy market activity. Furthermore, it's noteworthy that the upswing is aligned with the influential 200-day Simple Moving Average (200SMA), which adds credibility to the trend. 

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

As per trendlyne data, Laxmi Organic stock price fell 16.74% and underperformed its sector by 12.39% in the past year.

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Laxmi Organics Industries Ltd is the Goenka Group's flagship company. The interests of the group include chemicals, paper, electricity, and education. Laxmi is a prominent operator in the Acetyls industry in India, capable of producing 120,000 tonnes of Ethyl Acetate yearly. 

Additionally, the company creates 30,000 tonnes of acetaldehyde annually. Laxmi has a branch in the Netherlands and is directly present throughout Europe. The aim was made to provide better service to our overseas consumers.