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Specialty chemical manufacturer Laxmi Organic Industries will raise Rs 600 crore through an initial public offering (IPO). The issue will open for subscription on March 15 and close on March 17. The company has fixed the price band for the issue at Rs 129-130 per share.
Investors can bid for a minimum of 115 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,950 at the higher end of the price band. A retail investor can at max apply for 13 lots or 1,495 shares for 1,94,350.
The IPO comprises an OFS of Rs 300 crore from promoter group Yellowstone Trust and a fresh issue of Rs 300 crore by issuing 2,30,76,923 shares of Rs 2 face value. After the issue, the promoter shareholding will be reduced to 72.92% from 89.51% at present.
The total issue size has been reduced to Rs 600 crore from Rs 800 crore earlier as the company undertook a private placement of 1,55,03,875 equity shares aggregating to Rs 200 crore.
Proceeds from the fresh issue will be used for setting up a manufacturing facility for floor specialty chemicals, requirements of working capital, purchase of plant and machinery, and prepayment or repayment of all or a portion of outstanding debt.
Mumbai-based Laxmi Organic Industries is the leading manufacturer of acetyl & specialty intermediates and the largest manufacturers of ethyl acetate in India with a market share of approximately 30%. The company is the only manufacturer of diketene derivatives in India and has long-standing relationships with marquee customers like Alembic Pharmaceuticals, Dr Reddy’s Laboratories, Laurus Labs, Neuland Laboratories, Suven Pharmaceuticals, UPL amongst others.
The book operating lead managers to the issue are Axis Capital and DAM Capital Advisors, whilst the registrar to the issue is Link Intime India.
The issue is likely to finalize the basis of allotment by March 22, and the initialization of funds will take place by March 23. While the credit of equity shares to depository accounts of allottee on March 24. The specialty chemical manufacturer is expected to make its stock market debut on March 25, 2021.