Laxmi Organic IPO will open for subscription from 15 March 2021. The company aims for an issue size of ₹600 crores through this IPO.
Also read: IPO List 2021: a complete list of IPOs in 2021
Laxmi Organic Industries Limited
Incorporated in 1989, Laxmi Organic Industries Ltd is a specialty chemical manufacturer that operates in 2 business segments; Acetyl Intermediates (AI) and Specialty Intermediates (SI). It is the leading manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India.
Its AI segment includes ethyl acetate, acetaldehyde, fuel-grade ethanol, and other proprietary solvents whereas the SI segment includes ketene, diketene derivatives namely esters, acetic anhydride, arylides, amides, and other chemicals. Its products are being used in various industries like pharmaceuticals, agrochemicals, inks & coatings, dyes & pigments, paints, printing & packaging, etc. Alembic Pharmaceuticals Limited, Laurus Labs Limited, Granules India Limited, Hetero Labs Limited, Heubach Colour Private Limited, Hubergroup India Private Limited, Huhtamaki India Limited, Macleods Pharmaceuticals Private Limited, Suven Pharmaceuticals Limited, Colourtex Industries Private Limited, and UPL Limited are some of its customers.
The company has a global footprint with customers in 30 countries including but not restricted to China, Russia, Singapore, UAE, UK, USA, Netherland, etc. Currently, it has 2 manufacturing facilities in Mahad, Maharashtra for the manufacturing of AI and SI products. It is also proposing to set-up a new manufacturing facility at Lote Parshuram, Maharashtra to manufacture four specialty chemicals.
Objectives of the Issue
- To make prepayment or repayment of borrowings availed by the company and subsidiary, Viva Lifesciences Pvt Ltd (VLPL).
- To finance the Capex for expansion of SI manufacturing facility.
- Investment in a subsidiary firm, Yellowstone Fine Chemicals Private Limited (YFCPL) to partly finance Capex to establish a new manufacturing facility.
- To finance business working capital requirements.
- For investing in YFCPL for financing working capital requirements.
- To purchase plant and machinery for infrastructure development at SI facility.
- For general corporate purposes.
Competitive strengths
- Largest manufacturer of diketene derivative products.
- Strategically located manufacturing facilities.
- Leading manufacturer of ethyl acetate in India.
- Diversified customer base across industries.
- Consistent financial performance.
Basic details about the company
| Full name | Laxmi Organic Industries Limited |
| Sector | Chemicals |
| Industry | Chemicals |
| Company Website | www.laxmi.com |
Dates to remember
| IPO Opening date | 15 March 2021 |
| IPO Closing date | 17 March 2021 |
| Basis of Allotment date | 22 March 2021 |
| Initiation of Refunds | 23 March 2021 |
| Credit to Demat Account | 24 March 2021 |
| Listing Date | 25 March 2021 |
IPO details
| Issue type | Book Built Issue |
| Fresh Issue | ₹300 Crores |
| Offer for sale | ₹300 Crores |
| IPO issue size | ₹600 Crores |
| Face value | ₹2 per equity share |
| Price band | ₹129 to ₹130 |
| Retail portion | 35% |
| Lot size | 115 Shares |
| Minimum application | 1 Lot-115 Share |
| Maximum application | 13 Lots-1495 |
| Minimum application amount | ₹14,950 |
| maximum application amount | ₹194,350 |
| Listing Exchange | BSE & NSE |
Financial summary
| Laxmi Organic’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 1,396.1 | 1,574.3 | 1,538.6 | 814.4 |
| Expenses | 1,282.8 | 1,476.3 | 1,483.5 | 758.2 |
| Net income | 76.0 | 72.3 | 69.7 | 45.6 |
| Net margin (%) | 5.4 | 4.6 | 4.5 | 5.6 |
Valuation of Laxmi Organic Industries (as of FY2020)
| Earnings Per Share (EPS) | ₹2.86 |
| Price/Earnings (PE ratio) | 45.10 – 45.45 |
| Return on Net Worth (RONW) | 16.45% |
| Net Asset Value (NAV) | ₹18.97 per share |
Company Promoters
- Yellow Stone Trust
- Ravi Goenka
Lead Managers
- AXIS Capital Ltd
- DAM Capital advisors Ltd
Registrar of Laxmi Organic IPO
Link Intime India Private Limited
C-101, 1st Floor,
247 Park Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: laxmiorganic.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
Laxmi Organic Industries Contact Details
Laxmi Organic Industries Limited
Chandermukhi Building,
2nd and 3rd Floor, Nariman Point,
Mumbai – 400021, Maharashtra
Phone: +91 22 49104467
Email: investors@laxmi.com
Website: www.laxmi.com
Laxmi Organic IPO Allotment Status
Laxmi Organic Industries IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status.
Final thoughts
Laxmi Organic IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
Happy Investing
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