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 ValueRs 2
Price BandRs 129 to 130
Listing AtBSE, NSE
Min. Order Quantity115 Shares
Listing Date Mar 25, 2021
Offer for SaleRs 300 Cr.
Fresh IssueRs 300 Cr.
IPO SizeRs 600 Cr.
Tick SizeRs 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

Laxmi Organic Industries IPOThis 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 / DateQIBNIIRIITotal Subscription
1st Day – Mar 150.01x0.49x4.34x2.28x
2nd Day – Mar 161.15x2.48x10.38x6.05x
3rd Day – Mar 17175.43x217.62x20.10x106.81x
Shares Offered or Net Issue9,302,3246,976,74416,279,07032,558,138

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 FinalizationMar 22, 2021
Refunds InitiationMar 23, 2021
Credit of Shares to Demat AccountMar 24, 2021
Share Listing DateMar 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:

Financial Summary:

Amount (in INR & millions)
30-Sep-2031-Mar-20Mar-1931-Mar-18
Total Assets10,371.3210,706.3310,144.888,947.34
Total Revenue8,143.5515,386.2115,743.2313,960.75
Total Expense7,581.5614,834.8214,762.6412,827.77
Profit After Tax454.84702.12723.91756.95

Earnings per Equity Share (in Millions)

30-Sep-2031-Mar-20Mar-1931-Mar-18
Basic & Diluted2.022.862.893.03

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:

  1. YELLOW STONE TRUST AND
  2. 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.
of which:
Fresh issueUp to [●] Equity Shares aggregating up to Rs.300 Cr.
Offer For Sale
Up to [●] Equity Shares aggregating up to Rs.300 Cr.
 Of which:
QIB PortionNot more than [●] Equity Shares
 Retail Investors Portion Not less than [●] Equity Shares
 Non-Retail Investors PortionNot less  than [●] Equity Shares
 Equity Shares outstanding prior to the Issue225,081,975 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 EPSRONW (%)NAV (Rs.)
31-Mar-202.8616.45%18.97
31-Mar-192.8916.13%
31-Mar-183.0320.01%

Laxmi Organic Industries IPO : Competitive Peers

Face Value (Rs.)P/EEPS Basic (Rs.)Return on Net Worth (%)NAV per share (Rs.)
Laxmi Organic Industries Limited#22.8616.45%18.97
Listed Peers
Aarti Industries Limited524.9230.7718.00%170.96
Atul Limited1017.75224.6918.00%1063.63
Fine Organic Industries Limited535.4653.7526.63%201.86
Navin Flourine International Limited214.6882.628.42%285.46
Rossari Biotech Limited**213.427.88%56.49
SRF Limited1015.70177.2920.66%858.26

Laxmi Organic Industries IPO Lead Managers

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
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.: 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
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

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
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

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 ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

 


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    Laxmi Organic Industries Limited IPO News

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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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