Laxmi Organic

Laxmi Organic subscribed 2.28 times on Day 1 

Mumbai, March 15, 2021: Laxmi Organic Industries Limited (Laxmi Organic), a Mumbai based specialty chemicals manufacturer and the largest manufacturers of ethyl acetate in India, as per Frost & Sullivan Reportreceived bids of 7,42,26,635 shares against the offered 3,25,58,138 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 4.34 times. While the Qualified Institutional Buyer category was subscribed 0.01 times, the Non-Institutional Investor category was subscribed 0.49 times.  

The total size of the offer is Rs. 600 cr at the upper price band of Rs. 130 per share.

The offer consists of a fresh issuance of equity shares aggregating up to 300 Cr and an Offer for sale of equity shares aggregating up to Rs 300 cr; of face value of Rs 2 each. The minimum bid lot is of 115 equity shares, thereafter in multiples.  The price band has been fixed at Rs. 129 – Rs. 130 per Equity Share.

The Company recently raised Rs. 180 Cr through 15 anchor investors which found participation from renowned global portfolio investors such as Nomura India Equity Fund, Abu Dhabi Investment Authority, Goldman Sachs, Kuber India (Plutus), Theleme India Master Fund, Malabar India Fund, Ashoka India Opportunities Fund, India Acorn Fund. The key domestic players included SBI Mutual Fund, ICICI Prudential Mutual Fund and Aditya Birla Mutual Fund.

Key brokerage houses like Axis Capital, ICICI Direct, Canara Bank Securities, Angel broking, Kotak Securities, Religare Broking, Reliance Securities, Prabhudas Liladher, Hem Securities, Ventura, Marwadi Financial services, Choice, BP Wealth shared positive recommendations for the IPO and have highlighted key aspects of the Company such as leading manufacturer of ethyl acetate, over 30% market share in the Indian ethyl acetate market, sole Indian manufacturer of diketene derivatives in India with around 50% market share, absence of sizeable domestic competition, experienced management team, global presence in over 30 countries, marque clientele and technologically driven manufacturing facilities amongst others.

The Asia-Pacific market dominated the global acetyls market in 2019 owing to the increasing demand from end use applications like coatings, adhesives, sealants and elastomers (CASE), food & beverage and pharmaceuticals segments. Moreover, the rising geriatric population coupled with the affordability of generic drugs is expected to fuel the demand in the region. With many multinational players investing in India for manufacturing, active players such as Laxmi Organic would benefit the most in the growing industry scenario.

Axis Capital Limited and DAM Capital Advisors Limited are appointed as the BRLMs to the Issue.

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