Laxmi Organic to launch Rs 800-cr IPO following strong listing by Rossari Biotech, Chemcon Speciality

By: |
December 16, 2020 3:58 PM

Laxmi Organic Industries' issue will comprise fresh issue of shares aggregating to Rs 500 crore and an offer-for-sale (OFS) worth Rs 300 crore by the promoter Yellow Stone Trust.

mrs bectors ipo, mrs bectors share listingAccording to an analyst after a recovery in broader market and post declaration of allotment status, Mrs Bectors Food Specialities IPO is expected to list with a hefty premium

Laxmi Organic Industries is set to raise Rs 800 crore through initial public offer (IPO). The speciality chemicals manufacturer has filed preliminary papers with the capital market regulator Securities and Exchange Board of India (Sebi). Laxmi Organic Industries’ issue will comprise fresh issue of shares aggregating to Rs 500 crore and an offer-for-sale (OFS) worth Rs 300 crore by the promoter Yellow Stone Trust, according to the draft red herring prospectus (DRHP) filed.

The book running lead managers to the Mumbai-based Laxmi Organic are Axis Capital Ltd and DAM Capital Advisors Ltd (formerly known as IDFC Securities Limited), while the registrar is Link Intime India Private Ltd. Laxmi Organic Industries’ plan comes after the recent success and fundraising by specialty chemical companies, Rossari Biotech and Chemcon Specialty Chemicals, which were subscribed almost 80 times and 149 times respectively. Moreover, Chemcon Speciality Chemicals has witnessed the best share market listing, gaining 114 per cent from the IPO price, so far in 2020.

Laxmi Organic Industries is a leading manufacturer of acetyl intermediates and specialty intermediates. According to the draft red herring prospectus (DRHP), net proceeds from the issue will be utilised for setting up of a manufacturing facility for fluoro specialty chemicals, working capital requirement, and for the purchase of plant and machinery for augmenting infrastructure development. In addition, funds would be used for prepayment or repayment of all or a portion of outstanding loans, besides general corporate purposes. The company will not receive any proceeds from the offer-for-sale. The company has a global presence with customers in over 30 countries including China, Netherlands, Russia, Singapore, United Arab Emirates (UAE), United Kingdom and the United States of America.

The two recently listed specialty chemical companies, Rossari Biotech Ltd shares were trading at Rs 826.60 apeiece, up 0.89 per cent, while Chemcon Speciality Chemicals Ltd shares ended 0.79 per cent up at Rs 432.50 apiece. In comparison, S&P BSE Sensex ended at 46,666, up 0.87 per cent, at an all-time high closing level.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Home First Finance IPO: Check share allotment status via BSE, registrar’s websites; grey market premium jumps
2Indigo Paints IPO: Check share allotment status via registrar, BSE website; grey market premium, listing date
3Aadhar Housing Finance files Rs 7,300-cr IPO papers with Sebi