Laxmi Organic Industries IPO
Laxmi Organic Industries IPO: Specialty chemical company Laxmi Organics Industries is raising Rs 600 crore from the IPO. The company is bringing an IPO on Monday (15 March 2021), it will be open to investors till 17 March.
- IPO date
The IPO will open for bidding on March 15 and will close on March 17, 2021.
- Price band
A price band of Rs 129-130 has been set for the IPO of Laxmi Organics.
- Public issue
The company will raise Rs 600 crore from the primary market. In this issue fresh shares worth Rs 300 crore and shares worth Rs 300 crore will be offered under the offer for sale. Who are the shareholders of the promoter.
- Lot size
A lot size of 115 shares has been kept for this issue. Investors can bid for more shares in multiples of 115 shares. Retail investors can bid for a maximum of 13 lots. The minimum application size at the higher price band is Rs 14,950.
- Allotment Date
Information on allotment of shares of Laxmi Organics will be available by 23 March. Allotment of shares will start on March 23, while by March 24, the shares will be in demat account. Shares of Lakshmi Organics will be listed on March 25.
- Stock information
Information about the allotment of shares of this IPO will be found on the portal of Intime India. It is the registrar for this issue. The registrar deals with the processing of applications, allocation of shares and refunds etc. through electronic means. Only after the completion of the allotment, the name of the company appears on the registrar’s portal.
- About the company
Laxmi Organics is the largest producer of ethyl acetate in the country. Lakshmi Organic Industries is a major manufacturer of acetyl intermediate (AI) and specialty intermediates with nearly three decades of experience in large-scale manufacturing of chemicals with two manufacturing units in Mahad, Maharashtra. The company manufactures 30 percent ethyl acetate and 50 percent decetine in the country. The company’s shareholding is expected to increase further after the recent acquisition of Yellowstone Chemical. The company is active in two categories – acetyl and specialty chemical. The company’s pharma customers include Dr. Reddy’s Labs, Hetero Labs and Laurus Labs. Apart from this, UPL, Synginta and Sudarshan Chemical are its major agrochem customers. Two-thirds of the company’s revenue comes from these segments. The company earns one-fourth of its revenue from exports.
- Financial position of the company
Let us know that during the financial year 2017-18 to FY 2019-20 of Lakshmi Organics, the revenue has increased by 4.9 percent. Which has gone up to Rs. 1,534 crores and net profit at the rate of 3.6 percent to Rs. 70.2 crores. The capacity utilization of the specialty chemical plant stood at 67 per cent in December last year. In the first half of the financial year 2020-21, the company’s revenue was Rs 813 crore and profit was Rs 45.5 crore.