Shares of this specialty chemical stock under the ‘small-cap’ category jumped around 12 percent in Wednesday’s trading session after the company’s fundraising committee approved a QIP of approximately Rs 259 crores.
With a market capitalization of Rs 8,027.06 crores, the stocks of Laxmi Organic Industries started their trading session on Wednesday at Rs 274.50 and currently trades at Rs 302.25, gaining approximately 12 percent as compared to the previous close of Rs 271.15 apiece.
Such bullish sentiments around the stock prices were witnessed after the company, through a regulatory filing with the BSE dated 10th October 2023, informed that the ‘Fund Raising Committee of Directors’, at a meeting held yesterday, approved the issue and allotment of around 9.62 million fully paid-up equity shares via Qualified Institutional Placement (QIP).
The QIP is fixed to be conducted at an issue price of Rs 269.20 per equity share, i.e., a discount of Rs 14.07 per equity share (4.97 percent) to the floor price of Rs 283.27 per equity share. The total value of the QIP is approximately Rs 2,591.21 million.
During the recent financial quarters, the company has been successful in managing its operating expenses with the revenue, though, staying constant at levels of Rs 734 crores during the March 2023 as well as June 2023 quarter, the company has been able to increase its bottom-line numbers from Rs 24.27 crores to Rs 38.33 crores.
The debt-to-equity ratio, though increased in the current financial year, has stayed within the desired limits, i.e., increasing from 0.11 times during FY21-22 to 0.29 times during FY22-23.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 72.39 percent stake, and the Foreign Institutional Investors (FIIs), consistently increasing their stake each quarter, currently hold a 0.48 percent stake in the company.
Laxmi Organic Industries Limited is a specialty chemical manufacturer with operating divisions basically including the ‘chemical’ as well as ‘power generation’ business. Generating a majority of revenue from domestic operations, the company sells products comprising chemicals, coal, among others.
Written by Amit Madnani
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