June 13, 2021

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Laxmi Organic IPO

Laxmi Organic IPO

Laxmi Organic IPO

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.

Company Financials:

ParticularsFor the year/period ended (₹ in millions)
30-Sep-2031-Mar-2031-Mar-1931-Mar-18
Total Assets10,371.3210,706.3310,144.888,947.34
Total Revenue8,143.5515,386.2115,743.2313,960.75
Profit After Tax454.84702.12723.91756.95

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.

Laxmi Organic IPO Details

IPO Opening DateMar 15, 2021
IPO Closing DateMar 17, 2021
Issue TypeBook Built Issue IPO
Face Value₹2 per equity share
IPO Price₹129 to ₹130 per equity share
Market Lot115 Shares
Min Order Quantity115 Shares
Listing AtBSE, NSE
Issue Size[.] Eq Shares of ₹2
(aggregating up to ₹600.00 Cr)
Fresh Issue[.] Eq Shares of ₹2
(aggregating up to ₹300.00 Cr)
Offer for Sale[.] Eq Shares of ₹2
(aggregating up to ₹300.00 Cr

Laxmi Organic IPO Tentative Timetable

The Laxmi Organic 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 DateMar 15, 2021
IPO Close DateMar 17, 2021
Basis of Allotment DateMar 22, 2021
Initiation of RefundsMar 23, 2021
Credit of Shares to Demat AccountMar 24, 2021
IPO Listing DateMar 25, 2021

Laxmi Organic IPO Lot Size

The Laxmi Organic IPO market lot size is 115 shares. A retail-individual investor can apply for up to 13 lots (1495 shares or ₹194,350).

ApplicationLotsSharesAmount (Cut-off)
Minimum1115₹14,950
Maximum131495₹194,350

Laxmi Organic IPO Promoter Holding

Pre Issue Share Holding89.51%
Post Issue Share Holding72.92%