Fine Organic IPO opens: 8 facts to know about Rs 600 crore issue before investing

By: | Updated: June 20, 2018 10:17 AM

Fine Organic Industries IPO: The initial public offering of Mumbai-headquartered oleochemical-based additives manufacturer Fine Organic Industries opened today, 20 June 2018, for subscription with an aim to raise about Rs 600 crore from the share sale at the upper end of the price band.

Fine Organic IPO: Following the anchor investors’ allotment, Fine Organic has garnered about Rs 180.05 crore. (Image: Company Website)

Fine Organic Industries IPO: The initial public offering of Mumbai-headquartered oleochemical-based additives manufacturer Fine Organic Industries opened today, 20 June 2018, for subscription with an aim to raise about Rs 600 crore from the share sale at the upper end of the price band. Fine Organic IPO will remain open for three days starting today till Friday, 22 June 2018 for bidding. Earlier yesterday, Fine Organic raised Rs 180 crore from anchor investors by allotting 22.99 lakh equity shares to 15 anchor investors at Rs 783 per equity share. Following the anchor investors’ allotment, Fine Organic has garnered about Rs 180.05 crore.

8 facts to know about Rs 600 crore IPO of Fine Organic Industries before subscribing to the public issue

  1. Fine Organic is a manufacturer of oleochemical-based additives used in food, plastics, paints, cosmetics, ink and coatings. According to the Fine Organic DRHP (Draft Red Herring Prospectus), the company has three manufacturing facilities, namely, Ambernath, Badlapur and Dombivli.
  2. The company was incorporated as Fine Organic Industries (Mumbai) Pvt Ltd on 24 May 2002 in Mumbai. In 2009, the name was changed to Fine Organic Industries Ltd and in 2017, the name was further altered to Fine Organic Industries Ltd.
  3. Fine Organic Industries Ltd has appointed JM Financial Ltd and Edelweiss Financial Service Ltd as the book running lead managers for the IPO while Karvy Computershare Pvt Ltd is the registrar to the issue.
  4. Fine Organic Industries Ltd has fixed a price band of Rs 780 to Rs 783 of the face value of Rs 5 and has expected to raise Rs 600 crore at the upper end of the price band.
  5. Fine Organic IPO is a complete offer for sale with promoter and promoter group offloading as much as 76.64 lakh equity shares. “Our company will not receive any proceeds from the offer and all the proceeds from the offer, less offer related expenses, will go to promoter group selling shareholders,” Fine Organic said in DRHP.
  6. The promoters of Fine Organic are Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah. As on the date of DRHP, promoters and promoter group held 3.06 crore equity shares which represent 100% of the issued paid-up equity share capital of Fine Organic Industries Ltd.
  7. For Fine Organic IPO, the floor price is 156 times and the cap price is 156.6 times the face value of the equity share. Investors can bid for a minimum of 19 equity shares and in multiples of 19 equity shares thereafter.
  8. Goldman Sachs India, HDFC Small Cap Fund, SBI Magnum Comma Fund and DSP BlackRock Equity & Bond Fund are some of the anchor investors among the list of 15.

 

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