Laxmi Organic overall subscribed 6.05 times on Day 2 

Mumbai, March 16, 2021Laxmi 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 19,69,52,680 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 10.38 times. While the Qualified Institutional Buyer category was subscribed 1.15 times, the Non-Institutional Investor category was subscribed 2.48 times.  The number of applications received were approximately 11,81,986.

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.

Key brokerage houses like ICICI Direct, Canara Bank Securities, Angel broking, Kotak Securities, Religare Broking, Reliance Securities, Prabhudas Liladher, Hem Securities, Ventura, Marwadi Financial services, Choice, BP Wealth 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.

(Subscription table below)


 

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