Laxmi Organic Industries IPO: Opens Today; Find key details before subscribing

Laxmi Organics Industries, a specialty chemicals manufacturer, will open its Rs 600 crore initial public offering (IPO) for subscription on Monday, March 15, 2021. The company has fixed the price band for its issue at Rs 129-130 per share. The IPO closes on March 17, 2021.

The Rs 600 crore public issue will comprise fresh issuance of shares aggregating to Rs 300 crore and an offer for sale worth Rs 300 crore by the promoter Yellow Stone Trust. Investors can place bids for a minimum of 115 equity shares and in multiples of 115 equity shares thereafter, up to 13 lots.

The shares are likely to be listed on the stock exchanges on March 25, 2021.

Laxmi Organic Industries will utilise the net proceeds from the primary market offer to invest in a wholly-owned subsidiary, Yellowstone Fine Chemicals (YFCPL), to set up a manufacturing facility for fluorospecialty chemicals and to meet the working capital requirements.

Axis Capital and DAM Capital Advisors are the book-running lead managers to the issue of Laxmi Organic Industries, while Link Intime India is the registrar to the IPO.

Besides, the company has also raised Rs 180 crore from anchor investors on Friday, March 12, ahead of the public offering. According to a BSE circular, the company has allocated around 1.38 crore shares at Rs 130 per share to 15 anchor investors including Nomura India Equity Fund, Abu Dhabi Investment Authority, SBI Mutual Fund, ICICI Prudential Mutual Fund, Goldman Sachs, Malabar India Fund and Aditya Birla Sun Life among others.

Laxmi Organic Industries Ltd. is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in the large scale manufacturing of chemicals. The company started its business in 1989, initially manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996; currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30 per cent of the Indian ethyl acetate market.