Laxmi Organic Industries Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹130
Per ShareLot Size
115 Shares
Minimum Investment
₹14,950
Issue Size
₹600 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Laxmi Organic Industries Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
83.1%
Issue Type
Book Building
ISIN
INE576O01020
About the Company
Laxmi Organic Industries Limited is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. It is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. 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
Industry Overview
The global chemicals market is valued at around USD 4,738 Bn. India accounts for ~3.5% market share in the global chemicals market. Specialty chemicals are low-volume and high-value products which are sold on the basis of their quality or utility, rather than composition. Thus, they may be used primarily as additives or to provide a specific attribute to the end product. The global Acetyl market is projected to grow at 6.4% growth rate over the next five years owing to strong demand from end use applications. The Acetyl market is valued at USD 13.4 Bn in 2019 which is expected to reach USD 18.3 Bn by the end of year 2024.
Company History
Laxmi Organic Industries Limited was incorporated as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated May 15, 1989 issued by the Registrar of Companies, Maharashtra at Mumbai. The Company received a certificate for commencement of business on December 20, 1989 pursuant to the provisions of the Companies Act 1956.
Products & Services
- Manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of Chemicals (5-10 Microns)
Growth Strategy
- Volume maximisation at its Manufacturing Facilities by expanding installed capacities to support its growth initiatives
- Expanding and optimising its product portfolio
- Increasing its global footprint and augmenting growth in current geographies
- Establishing its fluorospecialty chemicals business
- Continuing focus on innovation and leveraging chemistries and technology absorption
- Impact of the COVID-19 pandemic on its business operations
Customer Base
Wholesalers & Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 46,153,846 equity shares of face value of Rs. 2 each ("equity shares") of Laxmi Organic Industries Limited ("The Company" or The "Issuer") for cash at a price of Rs. 130 per equity share (Including a premium of Rs. 128 per equity share) ("offer price") aggregating to Rs. 600.00 crore ("offer"). The offer comprises of a fresh issue of 23,076,923 equity shares aggregating to Rs. 300.00 crores ("Fresh issue") and an offer for sale of 23,076,923 equity shares aggregating to Rs. 300.00 crores by Yellow Stone Trust ("promoter selling shareholder"), (The "offer for sale", and together with the fresh issue, the "offer"). The offer will constitute 17.50% of the post-offer paid-up equity share capital. The face value of equity shares is Rs.2 each and Offer Price is 130 of the face value of the equity share. The Issue Price is 65.00 times of the face value.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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
- The continuing impact of the outbreak of the COVID-19 could have a significant effect on the operations, and could negatively impact the business, revenues, financial condition and results of operations.
- A large part of the manufacturing facilities are located in one geographic area and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Mahad, Maharashtra or any disruption in production at, or shutdown of, the Manufacturing Facilities could have material adverse effect on the business and financial condition.
- The company is in the process of setting up the Proposed Facility for manufacturing of fluorospecialty chemicals. Such fluorospecialty chemicals, a new product line, may not be accepted by the customers and/or may not be profitable or achieve the profitability that justifies the investment, which may have an adverse impact on the prospects, growth, results of operations and financial condition.
- Any inability on the part to manage the growth or implement the strategies effectively could have a material adverse effect on the business, results of operations and financial condition.
- If the research and development efforts do not succeed, The company may not be able to improve the existing products and/or introduce new products, which could adversely affect the results of operations, growth and prospects. Further, any failure to commercialize the new products may adversely impact the business, operating results and future prospectus.