Laxmi Organics is India one of the most prominent speciality chemical companies. They have come up with a recent IPO for raising INR 500 crores through the issue of fresh shares and the rest INR 300 crores from the equities through the promoters. The company has already registered their prospectus or Draft Red Herring Prospectus in order to get the approval of SEBI for issuing the IPO. The date for the issue is not yet declared but it’s expected to be within the upcoming months of 2021. Laxmi Organics are the subsidiary of Goenka Group and has been a conglomerate of the group since 1990. It’s one of the large scale manufacturers of diversified chemical products in the acetyl intermediates domain.
The company comprises two departments or sections for the Department of Scientific and Industrial Research. According to the Government of India, the DSIR has identified their research and development facilities equipped with state of the art infrastructure that fosters synthesis of speciality molecules along with progressive intermediates. The IPO for Laxmi Organic Industries will be promoted by Ravi Goenka and Yellow Stone Trust. Also, their lead managers include DAM Capital Advisors Ltd, Axis Capital Ltd and the IPO has been registered with Link Intime India Pvt Ltd.
Strength
The company has a diversified portfolio that is divided into broad categories including Speciality Intermediates and Acetyl intermediates. The Acetyl intermediates deal with acetaldehyde, ethyl acetate, fuel grade ethanol and different proprietary solvents. Other than this, the Speciality intermediates include diketene, ketene, along with derivatives like acetic anhydride, acetylides, esters, amides and more.
Considering the competitive strength, other than its well-balanced portfolio, it has extensive experience of more than three decades, which makes it a veteran player in the industry. They also have a wide network with their businesses spread across Europe and India. The company deals with a wide global clientele to extend its chemical, packaging and pharmaceutical product line in the international market.
IPO Details
The IPO of Laxmi Organic will issue fresh shares with a face value of INR 2 each considering its equity shares. The total aggregate expected to be raised with this IPO is INR 800 crores. As mentioned, the fresh issue would comprise shares with INR 500 crores and the offer for sale would be acquiring INR 300 crores through their equity promoters i.e. are YellowStone Trust. The dates of the IPO are not yet declared and are expected to be in the upcoming months of 2021. With a global presence across countries like Russia, Netherlands, China, Singapore, the UK, the USA and the United Arab Emirates, the company has a presence in over 30 countries.
The lead managers for the issue are Axis Capital and DAM Capital, who will operate the issue. The objective of the IPO is to raise the funds that will be allocated for the use in the establishment of a manufacturing unit for fluoro speciality chemicals. The establishment has been on top of the priority list for the IPO funds. Laxmi Organics is certainly a brand worth the watch in 2021.