Specialty chemicals firm Laxmi Organics files DRHP for Rs 800-crore IPO

Updated : December 16, 2020 14:11:31 IST

The Mumbai-based firm has filed the draft red herring prospectus (DRHP) with the market regulator Sebi for its public issue.

The IPO of Laxmi Organics come after specialty chemical firms like Rossari Biotech and Chemcon Specialty Chemicals went public.

Started in 1992, the firm is the largest manufacturer of ethyl acetate in India.

Specialty chemicals firm Laxmi Organics is likely to be the latest entrant in the IPO market. The Mumbai-based firm has filed the draft red herring prospectus (DRHP) with the market regulator Sebi for its public issue.

The Rs 800-crore initial public offering (IPO) will consist of a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 300 crore by promoter Yellow Stone Trust.

The IPO of Laxmi Organics come after specialty chemical firms like Rossari Biotech and Chemcon Specialty Chemicals went public. These were subscribed almost 80 times and 149 times respectively.

The firm is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates and the largest manufacturer and exporter of ethyl acetate from India. It has appointed Axis Capital and DAM Capital Advisors as the managers to the issue.

As per the filing, the net proceeds from the issue will be utilised for setting up a manufacturing facility for fluorospecialty chemicals, requirements of working capital, purchase of plant and machinery and prepayment or repayment of all or a portion of outstanding debt.

Started in 1992, the firm is the largest manufacturer of ethyl acetate in India. It has a diverse product portfolio and a market share of approximately 30 percent of the Indian ethyl acetate market and approximately 55 percent of the diketene derivatives market.

The company caters to major names like Alembic Pharmac, Dr Reddy's, Hetero Labs, Laurus Labs, Neuland Labs, Suven Pharma, Granules India, UPL, and Sudarshan Chemicals.

In 2012, International Finance Corporation acquired a 10.05 percent equity stake, which the company bought back in January 2020 for Rs 82.01 crore.

Published : December 16, 2020 02:11 PM IST

Specialty chemicals firm Laxmi Organics files DRHP for Rs 800-crore IPO

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