Laxmi Organic IPO: Issue Opens On March 15, Check Details Here

Laxmi Organic IPO 2021: Promoter Yellow Stone Trust will sell shares worth ₹300 crore while the company will issue new shares to raise ₹300 crore, as per the regulatory filings.

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The Mumbai-based Laxmi Organic on Monday announced an initial public offering (IPO) to raise ₹600 crore, and emerged as the third speciality chemicals maker to tap the primary markets this fiscal year.

The company is a leading manufacturer of acetyl intermediates and specialty intermediates. It focuses on two key business segments—acetyl intermediates and speciality intermediates. Also Read: Maharashtra Budget 2021 Highlights: From Concession In Stamp Duty For Women To Interest Free Loans To Farmers, Check Key Announcements Here

Here’s are things to know about the issue

• The IPO will be open from 15 to 17 March.
• Promoter Yellow Stone Trust will sell shares worth ₹300 crore while the company will issue new shares to raise ₹300 crore, as per the regulatory filings.
• Net proceeds from the issue will be utilised for setting up a manufacturing facility for fluoro specialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units.
• The company intends to use the funds for prepayment or repayment of all or a portion of outstanding loans, besides general corporate purposes.
• Axis Capital and DAM Capital Advisors have been appointed as the book running lead managers to the issue, while the registrar to the issue will be Link Intime India Private Ltd.
• The company has global presence with customers in over 30 countries including China, the Netherlands, Russia, Singapore, United Arab Emirates, the UK and the US.
• The expected price band of the issue is Rs 130 per share, as per the report in the Financial Express.
• Once listed, the company will join the listed companies including Aarti Industries Ltd, Atul Ltd, Fine Organic Industries Ltd, Navin Fluorine International Ltd, Rossari Biotech Ltd and SRF Ltd.
• In recent times, fundraising by specialty chemical companies -- Rossari Biotech and Chemcon Specialty Chemicals were subscribed almost 80 times and 149 times, respectively.