Laxmi Organic launches initial public offering of Rs 800-cr after strong listing by Rossari Biotech, Chemcon Specialty

laxmi organicsLaxmi Organic Industries is a leading manufacturer of acetyl intermediates and specialty intermediates

Laxmi Organic Industries will raise Rs 800 crore through initial public offering (IPO). The manufacturer of specialty chemicals has submitted preliminary documents to the Securities and Exchange Board of India (Sebi). The Laxmi Organic Industries issue includes a total value of Rs 500 billion new shares and an OFS worth Rs 300 billion by promoter Yellow Stone Trust under the submitted draft of the Red Herring Prospectus (DRHP).

The main managers of Mumbai-based Laxmi Organic are Axis Capital Ltd and DAM Capital Advisors Ltd (formerly known as IDFC Securities Limited), while the registrar Link Intime India Private Ltd. is. Laxmi Organic Industries’ plan follows recent success and fundraising by specialty chemicals companies, Rossari Biotech and Chemcon Specialty Chemicals, which have been subscribed nearly 80 and 149 times, respectively. In addition, Chemcon Specialty Chemicals had the best public listing, up 114 percent in 2020 compared to the IPO price.

Laxmi Organic Industries is a leading manufacturer of acetyl intermediates and specialty intermediates. According to the draft of the Red Herring Prospectus (DRHP), the net proceeds from the issue will be used to build a production facility for fluorine specialty chemicals, to meet working capital requirements and to purchase equipment and machinery to improve infrastructure development. In addition, funds would be used to prepay or repay all or part of the outstanding loans for general corporate purposes. The company will not receive any proceeds from the offer to sell. The company has customers in over 30 countries around the world, including China, the Netherlands, Russia, Singapore, the United Arab Emirates (UAE), Great Britain and the United States of America.

The two recently listed specialty chemicals companies, Rossari Biotech Ltd, traded at Rs 826.60 apiece, up 0.89 percent, while Chemcon Specialty Chemicals Ltd shares rose 0.79 percent to Rs 432.50 apiece . By comparison, S&P BSE Sensex ended up at 46,666, up 0.87 percent, at an all-time high.

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