Laxmi Organics Seeks SEBI’s Nod For Rs 800 crores IPO

The recent overwhelming response from investors has boosted the IPO market and encouraged companies to take a plunge in the public route to raise funds. News is that specialty chemicals company and the flagship of the Goenka group, Laxmi Organics has also filed DRHP for Rs 800 crores IPO with SEBI.

In recent time, specialty chemical companies have enjoyed active subscription from investors. Rossari Biotech, which was the first company to dare into the IPO market after a pause that lasted four months amid rising cases of COVID-19, was also a specialty chemical company. 

The Indian IPO segment recorded a fast recovery after COVID-19 hit its performance in March. Seventeen companies that have floated their IPOs in FY2020-21 raised south of Rs 30,000 crores from the market already with several offers receiving bumper oversubscription. Rossari Biotech and Chemcon Specialty Chemical, both from the same domain of Laxmi Organics were oversubscribed by 80 and 149 times respectively.   

Key Things To Know About The Upcoming Laxmi Organics IPO

• Laxmi Organics plans to float IPO shares worth of Rs 800 crores. The offer size will contain fresh shares aggregating to Rs 500 crores and Rs 300 crores in an offer for sales equities from the promoter, Yellow Stone Trust
• The company has filed the DRHP with the market regulator seeking approval 
• Laxmi Organics IPO dates not disclosed by the company yet
• It proposes to use the proceeds from the offer in setting up a fluro specialty manufacturing unit and also to meet general corporate expenses, prepayment and repayment of the debt, and buying plant and machinery 
• Axis Capital and DAM Capital Advisors are appointed lead-book managers for the offer

Company Profile 

Laxmi Organics captures 30 percent share in the Indian ethyl acetate market and approximately 55 percent of the diketene derivatives market. The company also caters to the global market and one of the primary exporters of specialty chemical to over 30 countries, including China, Netherlands, Russia, Singapore, UAE, UK, and the USA. It has an offshore office in the Netherlands.

In FY2019-20, company’s net profit stood at Rs 78.61 crores against Rs 77.78 crores of the previous year. Total income grew to Rs 1,366.27 crore versus 1,434.98 crores during the year before. 

Apart from Laxmi Organics, another specialty chemical company, Surat-based Anupam Rasayan may also file for IPO soon with SEBI. The company is looking to raise Rs 750-800 crores from the market. 

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