Laxmi Organics files ₹800-cr IPO papers with SEBI

Our Bureau Mumbai | Updated on December 16, 2020

Laxmi Organics, a manufacturer of acetyl intermediates and specialty intermediates, has filed initial papers with the market regulator to raise ₹800 crore through an Initial Public Offering (IPO).

The IPO would comprise a new issue of ₹500 crore and an offer for sale of ₹300 crore by the promoter, Yellow Stone Trust. Laxmi Organics has filed a Draft Red Herring Prospectus with SEBI on Wednesday.

The Mumbai-based speciality chemicals manufacturer, which started as a manufacturing company for acetaldehyde and acetic acid in 1992, is also the largest manufacturer and exporter of ethyl acetate from India.

The firm intends to use the proceeds of the issue to set up a manufacturing unit for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery, pre-payment or repayment of all or a portion of certain outstanding, upgrading existing units and other general corporate purposes.

The company has a market share of about 30 per cent of Indian ethyl acetate market and nearly 55 per cent of the diktene derivatives market. It has customers in over 30 countries, including China, the Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and the United States of America.

Axis Capital and DAM Capital Advisors are the book running lead managers to the issue,

In 2012, International Finance Corporation took a 10.05 per cent stake in the company, which the company bought back in January this year for ₹82.01 crore.

Earlier this year, specialty chemical companies such as Rossari Biotech and Chemcon Specialty Chemicals had also raised funding through IPOs.

Also Read: Rossari Bio IPO subscribed 80 times

Also Read: Chemcon public issue subscribed 150 times; CAMS 112 times

Published on December 16, 2020

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