Laxmi Organics, a manufacturer of acetyl intermediates and specialty intermediates, has fixed a price band of ₹129–130 per share for its ₹600-crore initial public offer (IPO), which will open for subscription on March 15.
The offer comprises fresh issuance of up to ₹300 crore and an offer for sale of up to ₹300 crore by promoter Yellow Stone Trust. The offer will close on March 17.
The company has raised ₹200 crore through a pre-IPO placement of 15.50 crore shares, following which the size of the fresh issue has been reduced to ₹300 crore from the earlier ₹500 crore. Consequently, the offer size has also been reduced to ₹600 crore from the earlier ₹800 crore.
In December, the company had filed initial papers with market regulator for the IPO.
The Mumbai-based speciality chemicals manufacturer would be looking to raise funds from anchor investors.
About 50 per cent of the offer would be for Qualified Institutional Buyers, not less than 15 per cent for non-institutional bidders and not less than 35 per cent for retail individuals.
Laxmi Organics proposes to utilise the net proceeds to repay debt, capital expenditure requirements to set up a manufacturing facility for fluorospecialty chemicals, investment in wholly-owned subsidiary Yellowstone Fine Chemicals Pvt Ltd and capital expenditure for expansion of manufacturing facility among others.
Axis Capital Ltd and DAM Capital Advisors Ltd (formerly known as IDFC Securities Ltd) are the book- running lead managers to the issue.
Following the IPO, the company intends to list its shares on BSE Ltd and the National Stock Exchange of India Limited (NSE).
As per a report by Frost & Sullivan, Laxmi Organic is among the largest manufacturers of ethyl acetate in India with a market share of about 30 per cent.