Laxmi Organic Industries Limited IPO Detail
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.
Competitive Strengths
- Leading manufacturer of ethyl acetate in India.
- Largest manufacturer of diketene derivative products.
- Diversified customer base across industries.
- Strategically located manufacturing facilities.
- Consistent financial performance.
Company Promoters
Yellow Stone Trust and Ravi Goenka are the company promoters.IPO Details
| IPO Opening Date | Mar 15, 2021 |
| IPO Closing Date | Mar 17, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹2 per equity share |
| IPO Price | ₹129 - 130 per equity share |
| Market Lot | 115 Shares |
| Min Order Quantity | 115 Shares |
| Listing At | BSE, NSE |
| Issue Size | ₹600.00 Cr |
| Fresh Issue | Eq Shares of ₹2 (aggregating up to ₹300.00 Cr) |
| Offer for Sale | ₹300.00 Cr |
| Retail Portion | - |
IPO Tentative Timetable
The Laxmi Organic Industries Limited IPO open date is Mar 15, 2021, and the close date is Mar 17, 2021. The issue may list on Mar 25, 2021.
| IPO Open Date | Mar 15, 2021 |
| IPO Close Date | Mar 17, 2021 |
| Basis of Allotment Date | Mar 22, 2021 |
| Initiation of Refunds | Mar 23, 2021 |
| Credit of Shares to Demat Account | Mar 24, 2021 |
| IPO Listing Date | Mar 25, 2021 |
IPO Lot Size
The Laxmi Organic Industries Limited IPO market lot size is 115 shares. A retail-individual investor can apply for up to 13 lots (1495 shares or ₹194350).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 115 | ₹14950 |
| Maximum | 13 | 1495 | ₹194350 |
IPO Promoter Holding
| Pre Issue Share Holding | 89.51% |
| Post Issue Share Holding | 72.92% |
Company Financials:
For the year/period ended (₹ in Crs)
| Financial Year | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 30-Sep-20 | 10,371.32 | 8,143.55 | 454.84 |
| 31-Mar-20 | 10,706.33 | 15,386.21 | 702.12 |
| 31-Mar-19 | 10,144.88 | 15,743.23 | 723.91 |
| 31-Mar-18 | 8,947.34 | 13,960.75 | 756.95 |
Objects of the Issue:
- Investment in subsidiary firm, Yellowstone Fine Chemicals Private Limited (YFCPL) to partly finance the capex to establish a new manufacturing facility.
- To invest in YFCPL for financing working capital requirements.
- To finance the capex for expansion of SI manufacturing facility.
- To finance business working capital requirements.
- To purchase plant and machinery for infrastructure development at SI facility.
- To make prepayment or repayment of borrowings availed by the company and subsidiary, Viva Lifesciences Pvt Ltd (VLPL).
- To meet general corporate purposes.
