Laxmi Organic Industries IPO – Review, Allotment, Subscription, GMP & DRHP
Let’s have a detailed review of the company and analytics of the Laxmi Organic Industries IPO release date, IPO offer price, subscription, Laxmi Organic Industries Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
|Face Value||Rs 2|
|Price Band||Rs 129 to 130|
|Listing At||BSE, NSE|
|Min. Order Quantity||115 Shares|
|Listing Date||Mar 25, 2021|
|Offer for Sale||Rs 300 Cr.|
|Fresh Issue||Rs 300 Cr.|
|IPO Size||Rs 600 Cr.|
|Tick Size||Rs 1|
Laxmi Organic Industries IPO is listed at [●] premium. Check out the live share price by clicking on the below link.
Laxmi Organic Industries IPO – Summary
This company, i.e. Laxmi Organic Industries are a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals.
Since their inception in 1989, they have been on a journey of transformation. They initially started manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996.
The company currently have two manufacturing facilities in Mahad, Maharashtra (the “Manufacturing Facilities”), with one facility dedicated to Acetyl Intermediates (the “AI Manufacturing Facility”) and another dedicated to Specialty Intermediates (the “SI Manufacturing Facility”), which are strategically located in proximity to several ports and each other.
They have two Department of Scientific and Industrial Research, Government of India (“DSIR”) recognised research and development facilities, with state-of-the-art research and development infrastructure to synthesise specialty molecules and advanced intermediates
The Promoters of this company are YELLOW STONE TRUST AND RAVI GOENKA. The lead managers to the issue are Axis Capital Limited, DAM Capital Advisors Limited and the Registrar to this issue is Link Intime India Private Limited.
Check similar articles for this IPO
|Laxmi Organic IPO GMP|
|Allotment of Laxmi Organic IPO|
Laxmi Organic Industries IPO Date
The opening and the closing date of IPO of Laxmi Organic Industries Limited is Mar 15, 2021 and Mar 17, 2021.
Laxmi Organic Industries Limited IPO Subscription
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day – Mar 15||0.01x||0.49x||4.34x||2.28x|
|2nd Day – Mar 16||1.15x||2.48x||10.38x||6.05x|
|3rd Day – Mar 17||175.43x||217.62x||20.10x||106.81x|
|Shares Offered or Net Issue||9,302,324||6,976,744||16,279,070||32,558,138|
The shares subscribed by the public will be updated here.
Check Laxmi Organic IPO LIVE Subscription
The below given link will give you the real time update of IPO subscription:
For the Latest Bid details click on the above links.
Laxmi Organic Industries IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.
Laxmi Organic Industries IPO Listing Date
Find the dates below on basis of allotment, refund, listing and more:
|Basis of Allotment Finalization||Mar 22, 2021|
|Refunds Initiation||Mar 23, 2021|
|Credit of Shares to Demat Account||Mar 24, 2021|
|Share Listing Date||Mar 25, 2021|
Laxmi Organic Industries IPO Price Band / Cash Price
The face value of each share is Rs.2 and the price band of the IPO is Rs 129 to 130.
Laxmi Organic Industries IPO Equity Size
This Initial Public Issue of [●] Equity Shares of Rs.2 each for cash at a price of Rs 129 to 130 per equity share aggregating to Rs.600 Cr.
Laxmi Organic Industries IPO Share Offering
Fresh Issue: The Fresh Issue of X Equity Shares by their Company, aggregating to Rs.300 Cr,
Issue Size: [●] Equity Shares of Rs.2 each, aggregating to Rs.600 Cr,
Offer for Sale: Offer for sale consists of Up to [●] Equity Shares of face value of Rs.2 each, aggregating Rs.300 Cr.
Laxmi Organic Industries IPO – Live Performance
The listing date of this IPO is Mar 25, 2021. You can check the live performance of the IPO here, only after it is listed on exchanges.
|Live IPO Performance – Laxmi Organic Industries Share Price|
Laxmi Organic Industries IPO Grey Market Premium
The Laxmi Organic Industries Limited IPO Grey Market Premium price is Rs 80- Rs 90, the Kostak rate is Rs 400 and the Subject to Sauda is Rs 6000.
Laxmi Organic Industries IPO – Company Overview
They are currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. Post completion of the YCPL Acquisition, their market share in the ethyl acetate market will be further enhanced.
In 2010, they commenced manufacturing the Specialty Intermediates by acquiring Clariant’s diketene business. They believe that the diversification of their product portfolio into varied chemistries in Specialty Intermediates has enabled them to create a niche.
They are 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
Laxmi Organic Industries IPO Business Verticals
Their 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.
Laxmi Organic Industries IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
|Amount (in INR & millions)|
|Profit After Tax||454.84||702.12||723.91||756.95|
Earnings per Equity Share (in Millions)
|Basic & Diluted||2.02||2.86||2.89||3.03|
For the six months ended September 30, 2020 and the Fiscals 2020, 2019 and 2018, their consolidated revenue from operations was Rs.8,134.06 million, Rs.15,341.23 million, Rs.15,685.21 million and Rs.13,930.74 million, respectively.
Their consolidated EBITDA for the six months ended September 30, 2020 and the Fiscals 2020, 2019 and 2018 was Rs. 863.42 million, Rs. 1,437.09 million (inclusive of a one-time income of Rs. 256.63 million), Rs. 1,586.17 million and Rs. 1,544.09 million respectively, while their consolidated profit for the period from continuing operations for the six months ended September 30, 2020 and the Fiscals 2020, 2019 and 2018 was Rs.454.84 million, Rs.702.12 million, Rs.723.91 million and Rs.756.95 million respectively.
Laxmi Organic Industries Limited IPO – Promoters
The Promoters of this company are:
- YELLOW STONE TRUST AND
- RAVI GOENKA
List of Related Parties (Key Managerial Personnel)
- Gautam Badalia, Chief Strategy Officer
- Suresh Jankar, Chief Financial Officer
- Aniket Hirpara, Company Secretary and Compliance Officer
Competitive Strengths of Laxmi Organic Industries Limited
- Leading manufacturer of ethyl acetate with significant market share
- Only Indian manufacturer of diketene derivatives with a significant market share and one of the largest portfolios of diketene products
- Diversified customer base across high growth industries and long-standing relationships with marquee customers
- Strategically located manufacturing facilities, vertical integration and supply chain efficiencies
- In-house research and development capabilities and consistent track record of technology absorption
- Global presence and low geographical concentration
- Their differentiated business model, asset base, product mix and experience in handling complex chemistries create high entry barriers
- Experienced promoter, board of directors and key managerial personnel
Laxmi Organic Industries Limited IPO Offer Details or Issue Details
|Particulars||No. Of Equity Shares|
|Equity Shares Offered||Up to [●] Equity Shares aggregating up to Rs.600 Cr.|
|Fresh issue||Up to [●] Equity Shares aggregating up to Rs.300 Cr.|
|Offer For Sale||Up to [●] Equity Shares aggregating up to Rs.300 Cr.|
|QIB Portion||Not more than [●] Equity Shares|
|Retail Investors Portion||Not less than [●] Equity Shares|
|Non-Retail Investors Portion||Not less than [●] Equity Shares|
|Equity Shares outstanding prior to the Issue||225,081,975 Equity Shares|
|Equity Shares outstanding after the Issue||[●] Equity Shares|
Laxmi Organic Industries IPO Issue Object
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following:
1. Investment in their wholly owned Subsidiary, Yellowstone Fine Chemicals Private Limited (“YFCPL”) for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for fluorospecialty chemicals (“Proposed Facility”);
2. Investment in YFCPL for funding its working capital requirements;
3. Funding capital expenditure requirements for expansion of their SI Manufacturing Facility (“Proposed Expansion”);
4. Funding working capital requirements of their Company;
5. Purchase of plant and machinery for augmenting infrastructure development at their SI Manufacturing Facility;
6. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by their Company and their wholly owned Subsidiary, Viva Lifesciences Private Limited (“VLPL”); and
7. General corporate purposes
Business strategies of Laxmi Organic Industries Limited
- Volume maximisation at their Manufacturing Facilities by expanding installed capacities to support their growth initiatives
- Expanding and optimising their product portfolio
- Increasing their global footprint and augmenting growth in current geographies
- Establishing their fluorospecialty chemicals business
- Continuing focus on innovation and leveraging chemistries and technology absorption
- Impact of the COVID-19 pandemic on their business operations
Laxmi Organic Industries Limited IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager. On the basis of the qualitative and quantitative factors:
Qualitative factors are:
a. Leading manufacturer of ethyl acetate with significant market share;
b. Only Indian manufacturer of diketene derivatives with a significant market share and one of the largest portfolios of diketene products;
c. Diversified customer base across high growth industries and long-standing relationships with marquee customers;
d. Strategically located manufacturing facilities, vertical integration and supply chain efficiencies;
e. In-house research and development capabilities and consistent track record of technology absorption;
f. Global presence and low geographical concentration;
g. Differentiated business model, asset base, product mix and experience in handling complex chemistries create high entry barriers; and
h. Experienced promoter, board of directors and key managerial personnel.
The relevant quantitative factors are:
|Basic & Diluted EPS||RONW (%)||NAV (Rs.)|
Laxmi Organic Industries IPO : Competitive Peers
|Face Value (Rs.)||P/E||EPS Basic (Rs.)||Return on Net Worth (%)||NAV per share (Rs.)|
|Laxmi Organic Industries Limited#||2||–||2.86||16.45%||18.97|
|Aarti Industries Limited||5||24.92||30.77||18.00%||170.96|
|Fine Organic Industries Limited||5||35.46||53.75||26.63%||201.86|
|Navin Flourine International Limited||2||14.68||82.6||28.42%||285.46|
|Rossari Biotech Limited**||2||–||13.42||7.88%||56.49|
Laxmi Organic Industries IPO Lead Managers
|Axis Capital Limited|
Address: 1st Floor, Axis House,
C-2 Wadia International Center,
Pandurang Budhkar Marg,
Worli, Mumbai- 400 025
Tel: +91 22 4325 2183
Investor Grievance E-mail: firstname.lastname@example.org
Contact Person: Sagar Jatakiya
SEBI Registration No.: INM000012029DAM Capital Advisors Limited
Address: One BKC, Tower C, 15th Floor
Unit No. 1511, Bandra Kurla Complex
Bandra (East), Mumbai – 400 051
Tel: +91 22 4202 2500
Investor Grievance E-mail: email@example.com
Contact Person: Kunal Thakkar
SEBI Registration No.: MB/INM000011336
Laxmi Organic Industries IPO Registrar to offer
|Registrar to the Offer|
|Link Intime India Private Limited|
C101, 247 Park
L.B.S. Marg, Vikhroli (West)
Mumbai – 400 083
Tel: +91 22 4918 6200
Investor grievance email: firstname.lastname@example.org
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Laxmi Organic Industries IPO – Other Details
- Statutory Auditor – Natvarlal Vepari & Co., Chartered Accountants
- Legal Counsel to the Company – Khaitan & Co
- Bankers to the Company – Axis Bank Limited, Citibank N.A., HDFC Bank Limited, IDBI Bank Limited, RBL Bank Limited, State Bank of India, Yes Bank Limited
Laxmi Organic Industries Limited IPO Review by Top 10 Stock Brokers
|Top Stock Brokers Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
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Laxmi Organic Industries IPO Review FAQs
Ques – What is the Issue Size of Laxmi Organic Industries IPO?
Answer – The Company is making an initial public offer of NA equity shares. We vividly portray the aspects of the issue in this article. You can check the stats on fresh issue, Offer for sale, and the net issue.
Ques – What is the Price band?
Answer – The price band for this particular IPO ranges between Rs.129 – 130. As far as the face value of the share is of concern, it is Rs.2 per share.
Ques – What is the Laxmi Organic Industries IPO Open Date?
Answer – The opening and closing date for the IPO have been updated. The IPO is set to open on Mar 15, 2021, while the closing date is set at Mar 17, 2021.
Ques – What is the IPO Allotment Date?
Answer – We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on Mar 22, 2021, refund initiation is on Mar 23, 2021, credit of shares is on Mar 24, 2021 and share listing date is on Mar 25, 2021.
Ques – What is the IPO Listing Date?
Answer – Shares of this company shall be listed in the exchanges BSE as well as NSE. Date when the listing would be done is stagnant on Mar 25, 2021.
Ques – Who is the Registrar of this IPO?
Answer – One of the reputed registrars are managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on a lookout for.
Ques – Who is the Promoter of this Company?
Answer – Here are the promoters of this company – YELLOW STONE TRUST AND RAVI GOENKA. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
Ques – What is GMP of Laxmi Organic Industries IPO?
Answer – We have obtained the GMP of this IPO and it is 80-90. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Ques – Is Laxmi Organic Industries IPO good for Investment?
Answer – Laxmi Organic is on the top of priority list of IPO applicants, with a strong GMP. Being a specialty chemical manufacturer, it has maintained strong financials and has successfully led its operational capabilities. Take a look at the balance sheet of the company, as provided in this review.
Ques – What is the PAT of this Company?
Answer – We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2020 in millions is 702.12, 2019 is 723.91, 2018 is 756.95. PAT from Sep 2020 is 454.84.
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