Laxmi Organics Ltd is a foremost speciality chemical manufacturer, dealing with Speciality Intermediate and Acetyl Intermediate. This leading company with 30% market share in Indian Ethyl Acetete market and the only manufacturer of diketene derivatives in India is coming with a public issue, open for subscription on 15th March 2021 and the offer closes on 17th March 2021. In this IPO company issues Equity shares aggregating up to INR 600 crores (fresh issue is INR 300 crore and INR 300 crores of equity shares) of the Face Value of INR 2 per share. The IPO price per equity share ranges between INR 129 – 130. Tentative Lot Size is fixed at 115 shares for INR 14,950, for a maximum of 13 such lots i.e. 1495 shares offered for INR 1,94,350.
More about Laxmi Organic Industries Ltd:
Laxmi Organic Industries Ltd is an ace manufacturer and is a global giant in the field of speciality chemicals. Incorporated in 1989 this company has a rich experience of over three decades manufacturing acetyl intermediates and speciality intermediatesturers and is established as a largest manufacturer of ethyl acetate in India with a roaring share of 30%. It is also bags a lead share of 55% as a manufacturer of diketene derivatives in India for the Fiscal year 2020. Laxmi Organics has future plans to diversify in the field of manufacturing of fluorochemicals, to which they have started to acquire resources including plant and machinery etc. This company is successfully able to expand its scale of its operations and has a global footprint spread across 30 counties.
What are the opening and the closing dates of the IPO?
The IPO is all set to hit the market floor for subscription for the public on 15th March 2021 and will close on 17th March 2021
What is the issue price of the shares?
Initial Public Offer of Laxmi Organic Industries Ltd is issued with a price band of INR 129 – 130 per share, with a Face Value of INR 2 per Equity Share.
What is the size of the issue?
The issue size is Equity Shares of INR 2 per share aggregating up to INR 600.00 crore, comprising of Fresh Issue of Equity Shares of INR 2 per share of total value of INR 300.00 crore and Offer for sale is Equity shares of INR 2 per share amounting to INR 300.00 crores.
What is the minimum order-quantity?
The market lot size of Laxmi Organic Industries Ltd is 115 shares amounting to INR 14,950 and a retail individual investor is eligible to apply for up to 13 such lots comprising of 1,495 shares of INR 1,94,350 value.
What is the tentative vital date sheet of this IPO?
| IPO Opening Date | 15th March 2021 |
| IPO Closing Date | 17th March 2021 |
| Basis of Allotment Date | 22th March 2021 |
| Initiation of Refunds | 23rd March 2021 |
| Credit of Shares to Demat Account | 24th March 2021 |
| IPO Listing Date | 25th March 2021 |
What are the objectives of this issue?
- To support business working capital requirements.
- To encounter general corporate purposes.
- For financing the infrastructure development, buying plant and machinery etc for SI facility.
- To facilitate working capital requirements and invest in subsidiary Yellowstone Fine Chemicals Private Limited (YFCPL).
- For investment purpose of financing YFCPL and aid establish new manufacturing facility by financing the capex.
- To meet working capital requirements in YFCPL.
- To end up with all the repayment and pre-payment of borrowings done by another subsidiary Viva Lifesciences Pvt Ltd (VLPL).
Who are the promoters of the company?
Ravi Goenka and Yellow Stone Trust are the company promoters, holding 89.51% per-issue share-holding which will slide down to 72.92% post the IPO.
Restated and consolidated financial summary of the company:
| Particulars | For the year/period ended (in INR millions) | ||||
| 30th Sept 2020 | 31st March 2020 | 31st March 2019 | 31st March 2018 | ||
| Total Assets | 10,371.32 | 10,706.33 | 10,144.88 | 8,947.34 | |
| Total Revenue | 81,143.55 | 15,386.21 | 15,743.23 | 13,960.75 | |
| Profit After Tax (PAT) | 454.84 | 702.12 | 723.12 | 756.95 | |
How to apply for the Laxmi Organics IPO?
The primary requirement to apply for any IPO is to have a Demat account to receive shares and one can apply to shares through any broker or through net banking.
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