Started in 1989, laxmi Organic Industries Limited is a specialized chemical manufacturer operating in 2 business sectors; Acetyl Intermediate (AI) and Specialty Intermediate (SI). It is the leading producer of ethyl acetate in the Indian ethyl acetate market with over 30% market share and is the only manufacturer of dicetin derivatives in India. laxmi Organic IPO will hit the market on 15 Mar 2021.
Its AI segment includes ethyl acetate, acetaldehyde, fuel-grade ethanol, and other proprietary solvents, while the SI segment contains catein, dicetin derivatives namely esters, acetic anhydrides, arylides, amides, and other chemicals.
Its products are being used in various industries such as pharmaceuticals, agrochemicals, inks and coatings, dyes and pigments, paints, printing and packaging, etc. Hubergroup India Private Limited, Huhtamaki India Limited, Macleods Pharmaceuticals Private Limited, Suwen Pharmaceuticals Limited, Kolortex Industries Private Limited and UPL Limited are some of its customers.
The company has a global footprint with customers in 30 countries, excluding China, Russia, Singapore, UAE, UK, USA, Netherlands etc. Currently, it has 2 manufacturing facilities in Maharashtra for manufacturing AI and SI. Products. It is also proposed to set up a new manufacturing facility at Lotte Parasuram, Maharashtra for manufacturing four special chemicals.
Their products find applications in various high-growth industries including pharmaceuticals, agrochemicals, dyes and pigments, inks and coatings, paints, printing and packaging, flavor and fragrance, adhesives and other industrial applications.
They propose to diversify the manufacturing of specialized fluorochemicals, which, in the end, we have recently built in plant and machinery, design and operating paperwork, immovable registrations and patents of Myteni, organic fluorospecialty and electrochemical fluorination. They believe they are well placed to enter the high margin specialty fluorochemicals space through this acquisition.
Table of Contents
Promoters :
Ravi Goenka, 58, is the Chairman and MD of the firm. He holds a bachelor’s degree in Chemical Engineering from Bangalore University. He has been associated with the company since inception, and has nearly 30 years of experience in the chemicals and paper industries, 16 years of experience in the education industry, and 21 years of experience in the electricity industry.
Positive Points
- One of the leading manufacturer of ethyl acetate in the country.
- Biggest manufacturer of dicetin derivative products.
- Diverse clientile base across industries.
- Strategically located manufacturing units.
- Consistent positive financial results.
Financials Trends
| Particulars (Cr) | 6MFY21 | Mar-20 | Mar-19 | Mar-18 |
| Sales | 813 | 1,534 | 1,569 | 1,393 |
| Purchase of materials | 209 | 287 | 250 | 321 |
| Cost of Material Consumed | 351 | 780 | 888 | 655 |
| Changes in Inventories | 12 | 29 | -42 | -9 |
| Employee Benefit Expenses | 36 | 69 | 65 | 53 |
| Other expenses | 119 | 255 | 255 | 203 |
| Operating Profit | 86 | 114 | 153 | 170 |
| OPM % | 10.5% | 7.43% | 9.75% | 12% |
| Other Income | 1 | 4 | 6 | 3 |
| Interest | 7 | 14 | 17 | 10 |
| Depreciation | 23 | 49 | 44 | 31 |
| Profit before tax | 56 | 81 | 98 | 113 |
| Net Profit | 45 | 70 | 72 | 76 |
| No. of shares | 22.51 | 22.51 | 25.02 | 5.01 |
| EPS in Rs | 2.02 | 2.86 | 2.89 | 3.03 |
Object of IPO
- Investing in a subsidiary of Yellowstone Fine Chemicals Private Limited (YFCPL), partially financing capex to establish a new manufacturing facility.
- Investing in YFCPL to finance working capital requirements.
- To finance CapEx for expansion of SI manufacturing facility.
- To meet the requirements of business working capital.
- To purchase plant and machinery for infrastructure development in SI facility.
- Prepayment or repayment of borrowings taken by the company and subsidiary Veeva Lifesciences Pvt Ltd (VLPL).
- To meet general corporate objectives.
IPO Details
| IPO Opening Date | 15 Mar, 2021 |
| IPO Closing Date | 17 Mar, 2021 |
| Issue Type | Book Built |
| Face Value | 2 per share |
| IPO Price | 129 to 130 per share |
| Market Lot | 115 Shares |
| Min Order Quantity | 115 Shares |
| Listing At | BSE, NSE |
| Issue Size | 600.00 Cr |
| Fresh Issue | 300.00 Cr |
| Offer for Sale | 300.00 Cr |
IPO Tentative Date
The Laxmi Organic IPO open date is Mar 15, 2021, and the close date is Mar 17, 2021. The issue may list on Mar 25, 2021.
| IPO Open Date | 15 Mar, 2021 |
| IPO Close Date | 17 Mar, 2021 |
| Basis of Allotment Date | 22 Mar, 2021 |
| Initiation of Refunds | 23 Mar, 2021 |
| Credit of Shares to Demat Account | 24 Mar, 2021 |
| IPO Listing Date | 25 Mar, 2021 |
IPO Lot Size
The Laxmi Organic IPO market lot size is 115 shares. A retail investor can apply for up to 13 lots (1495 shares).
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 115 | 14,950 |
| Maximum | 13 | 1495 | 194,350 |
Promoter Holding
| Pre Issue Share Holding | 89.51% |
| Post Issue Share Holding | 72.92% |
laxmi Organic IPO Prospectus
Contact Details
A-22/2/3, MIDC,
Mahad, Raigad– 402 309
Phone: +91-2145-232424
Email: [email protected]
Website: http://www.laxmi.com/
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Laxmi Organic IPO Opening Date?
The IPO opens on 15 Mar, 2021, and closes on 17 Mar, 2021.
Lot size for Laxmi Organic IPO?
Laxmi Organic IPO lot size is 115 Shares.
Laxmi Organic IPO gmp today?
Laxmi Organic IPO gmp is INR 70.
Allotment date for Laxmi Organic IPO?
The Basis of Allotment for Laxmi Organic IPO will be done on Mar 22, 2021
Listing Date for Laxmi Organic IPO?
The Listing date for Laxmi Organic IPO is 25 Mar 2021.
