The Ahmedabad-based Laxmi Goldorna’s IPO has received an enthusiastic response from investors amidst the highly volatile market conditions amidst lockdown due to coronavirus pandemic.
The IPO was subscribed by 1.15 times in NSE Emerge platform.
The SME is into the business of gold jewellery and affordable housing. As the issue got closed on last Friday, the company will be listed on NSE Emerge once the lockdown will be eased.
Beeline Broking, who managed the issue said, “Small and Medium Enterprises (SMEs) have been impacted the most due to the COVID-19 pandemic-related lockdown, and facing deep-rooted liquidity issues. However, Laxmi Goldorna has been able to garner bids of Rs 9.52 crore out of the issue size of Rs 8.28 crore. The issue received bids for 63,28,000 shares compared to the issue size of 55,20,000.”
The brokerage added “Laxmi Goldorna’s IPO not only faced weak market sentiment, but it was also very difficult to manage bidding and blocking of funds by the banks, as these banks are currently guided to provide only essential services in these challenging times.”
The proceeds will be used to channelize working capital of Laxmi Goldorna’s low and medium housing real estate projects in Ahmedabad. NSE EMERGE has total 208 companies listed on its platform and have collectively raised more than Rs 3219 crore in FY2019-20 and total 13 SME companies had got listed.