Laxmi Organic Industries Limited IPO
About
Laxmi Organics is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. Since its inception in 1989, It has been on a journey of transformation. The company initially started manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996. The company is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market (source: Frost & Sullivan Report).
Further, post completion of the YCPL Acquisition, the market share in the ethyl acetate market will be further enhanced. In Fiscal 2010, it commenced manufacturing the Specialty Intermediates by acquiring Clariant’s diketene business. Laxmi Organics believe that the diversification of its product portfolio into varied chemistries in Specialty Intermediates has enabled it to create a niche for ourselves it is the only manufacturer of diketene derivatives in India with a market share of approximately 55 % of the Indian diketene derivatives market in terms of revenue in Fiscal 2020 and one of the largest portfolios of diketene products (source: Frost & Sullivan Report).
Laxmi Organics products are currently divided into two broad categories, namely the Acetyl Intermediates and the Specialty Intermediates. The Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents, while the Specialty Intermediates comprises of ketene, diketene derivatives namely esters, acetic anhydride, amides, arylides and other chemicals. The products find application in various high-growth industries, including pharmaceuticals, agrochemicals, dyes & pigments, inks & coatings, paints, printing & packaging, flavours & fragrances, adhesives and other industrial applications. Laxmi Organics also propose to diversify into manufacturing of specialty fluorochemicals to which end, It has recently acquired assets including plant & machinery, design and operating paperwork, REACH registrations and patents of Miteni, a manufacturer of organic fluorospecialties and electrochemical fluorination. It believe they are well placed to enter into the high margin specialty fluorochemicals space through this acquisition. According to the Frost & Sullivan Report, given the expertise in the Acetyl Intermediates and the Specialty Intermediates segments, its entry into the fluorochemicals space will put us at a differentiated position from other chemicals manufacturers.
Promoters
- YELLOW STONE TRUST
- RAVI GOENKA
Financials
| Particulars | For the year/period ended (₹ in millions) | |||
|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 10,371.32 | 10,706.33 | 10,144.88 | 8,947.34 |
| Total Revenue | 8,143.55 | 15,386.21 | 15,743.23 | 13,960.75 |
| Profit After Tax | 454.84 | 702.12 | 723.91 | 756.95 |
Competitive Strengths
- Leading manufacturer of ethyl acetate in India.
- Largest manufacturer of diketene derivative products.
- Diversified customer base across industries.
- Strategically located manufacturing facilities.
- Consistent financial performance.
IPO Details
| IPO Opening Date | 15th MARCH 2021 |
| IPO Closing Date | 17th MARCH 2021 |
| Issue Type | Book Built Issue |
| Face Value | ₹2 per equity share |
| IPO Price | ₹129 to ₹130 |
| Market Lot | 115 Shares |
| Min Order Quantity | 115 Shares |
IPO timeline
| IPO Open Date | 15th MARCH 2021 |
| IPO Close Date | 17th MARCH 2021 |
| Basis of Allotment Date | 22nd MARCH 2021 |
| Initiation of Refunds | 23rd MARCH 2021 |
| Credit of Shares to Demat Account | 24th MARCH 2021 |
| IPO Listing Date | 25th MARCH 2021 |
Book Running Lead managers
Axis Capital Limited
Address: 1st Floor, Axis House
C-2 Wadia International Center
Pandurang Budhkar Marg
Worli, Mumbai- 400 025
Maharashtra
Tel: +91 22 4325 2183
E-mail: laxmi.ipo@axiscap.in
Investor Grievance E-mail: complaints@axiscap.in
Website: www.axiscapital.co.in
Contact Person: Sagar Jatakiya
SEBI Registration No.: INM000012029
DAM Capital Advisors Limited
(Formerly known as IDFC Securities Limited)
Address: One BKC, Tower C, 15th Floor
Unit No. 1511, Bandra Kurla Complex
Bandra (East), Mumbai – 400 051
Maharashtra
Tel: +91 22 4202 2500
E-mail: laxmi.ipo@damcapital.in
Investor Grievance E-mail: complaint@damcapital.in
Website: www.damcapital.in
Contact Person: Kunal Thakkar
SEBI Registration No.: MB/INM000011336
Link Intime India Private Limited
C101, 247 Park
L.B.S. Marg, Vikhroli (West)
Mumbai – 400 083, Maharashtra
Tel: +91 22 4918 6200
Email: laxmiorganic.ipo@linkintime.co.in
Investor grievance email: laxmiorganic.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Company Address
Registered Office:
A-22/2/3, MIDC, Mahad,
Raigad – 402 309, Maharashtra;
Tel: +91-2145-232424
Corporate Office:
Chandermukhi Building,
2nd and 3rd Floor, Nariman Point,
Mumbai – 400021, Maharashtra;
Tel: +91-22-49104444
Contact Person:
Aniket Hirpara
Company Secretary and Compliance Officer
Tel: +91-22-49104467
E-mail: investors@laxmi.com
Website: www.laxmi.com
Corporate Identity Number: U24200MH1989PLC051736
