Laxmi Organic Industries ₹600-cr IPO to open on March 15

PTI New Delhi | Updated on March 09, 2021

Price band set at ₹129-130/share

Speciality chemicals manufacturer Laxmi Organics Industries on Tuesday fixed a price band of ₹129-130 a share for its ₹600-crore initial public offer, which will open for subscription on March 15.

The initial public offer (IPO) comprises fresh issuance of shares aggregating to ₹300 crore and an offer for sale worth ₹300 crore by the promoter Yellow Stone Trust, Laxmi Organics Industries said.

In consultation with the book running lead managers to the issue, the company undertook a private placement of 15,503,875 equity shares aggregating to ₹200 crore. Consequently, the size of the fresh issue has been reduced from ₹500 crore to up to ₹300 crore.

The three-day public offer will conclude on March 17, and the bidding for anchor investors would open on March 12.

Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.

Mumbai-based Laxmi Organics is a leading manufacturer of acetyl intermediates and specialty Intermediates.

Net proceeds from the issue will be utilised for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units.

In addition, funds would be used for prepayment or repayment of all or a portion of certain outstanding, besides general corporate purposes.

Laxmi Organic's plans to go to market took steam after the recent success and fundraising by specialty chemical companies -- Rossari Biotech and Chemcon Specialty Chemicals -- which were subscribed almost 80 times and 149 times, respectively.

The company has a global presence with customers in over 30 countries, including China, the Netherlands, Russia, Singapore, the United Arab Emirates, the UK and the US.

Axis Capital and DAM Capital Advisors have been appointed as the book running lead managers to the issue.

Published on March 09, 2021

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