Laxmi Organic Industries' Rs 600 crore initial public offering (IPO) will open for subscription on March 15. The speciality chemicals manufacturer has fixed a price band of Rs 129-130 per share for the three-day IPO, which will close on March 17.
Here are ten things to know about Laxmi Organic IPO:
- A flagship company of the Goenka Group, the speciality chemicals manufacturer plans to raise up to Rs 600 crore from the IPO.
- The three-day IPO will open on March 15 and will conclude on March 17. The bidding for anchor investors would open on March 12. Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.
- Price band for the IPO has been fixed at Rs 129-130 per share.
- The IPO comprises of a fresh issuance of equity shares worth Rs 300 crore and an offer for sale worth Rs 300 crore by the promoter Yellow Stone Trust.
- The company undertook a private placement of 15,503,875 equity shares aggregating to Rs 200 crore. Consequently, the size of the fresh issue has been reduced from Rs 500 crore to up to Rs 300 crore.
- Axis Capital and DAM Capital Advisors have been appointed as the book-running lead managers to the issue.
- Equity shares of Laxmi Organics will be listed on BSE and NSE.
- The firm intends to use net proceeds from the issue for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units. Besides, funds would be used for prepayment or repayment of all or a portion of certain outstanding, besides general corporate purposes.
- Laxmi Organic IPO comes after the recent successful listing of specialty chemical companies -- Rossari Biotech and Chemcon Specialty Chemicals -- which were subscribed almost 80 times and 149 times, respectively.
- Incorporated in 1989, Laxmi Organic Industries operates in 2 business segments - Acetyl Intermediates (AI) and Specialty Intermediates (SI). It is the leading manufacturer of ethyl acetate with over 30 per cent market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India.