InvestorQ : What was the response to the Laxmi Organic IPO on day-1? Also how do you see the listing of MTAR of Hyderabad on Monday?
swati Bakhda made post

What was the response to the Laxmi Organic IPO on day-1? Also how do you see the listing of MTAR of Hyderabad on Monday?

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Sam Eswaran answered.
8 months ago
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The two-day bank strike by the 9 unions of PSU banks may have resulted in cheques worth Rs.16,500 crore getting held up on Monday. However, that did not in any way dent the enthusiasm of the IPO investors for the Laxmi Organic Industries issue in the market. By the close of the first day of the issue on 15 March, Laxmi Organic had seen 1.88 times overall subscription on its issue book.

The first day is too early to look at the HNI and the QIB book because normally the HNI and QIB subscriptions tend to get bunched on the last day of the issue. It is well known that the Laxmi IPO comprises Rs.300 crore fresh issue and Rs.300 crore by way of OFS. The issue is priced in the band of Rs.129-130. Laxmi has already done a robust anchor placement to its marquee investors at the upper end of the band the GMP is also quite attractive.

Meanwhile, MTAR Technologies, the defence support service company based out of Hyderabad, saw 88% premium on listing on 15 March. The stock was stable and never really dipped below the issue price. The stock closed 2.5% above the listing price. MTAR is a very niche play and provides support services to the defence establishment as well to high end research institutions like ISRO and also to DRDO.

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