By Dominick Rodrigues
Mumbai : Laxmi Organic Industries Limited here today announced its IPO with equity shares priced at between Rs 129-Rs 130 per share – aggregating Rs 600 crore — from March 15 to March 17. It will be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).
Laxmi Organic is the only manufacturer of diketene derivatives in India with a market share of approximately 55% of the Indian diketene derivatives market in terms of revenue in Fiscal 2020 and one of the largest portfolios of diketene products.
Ravi Goenka, CMD, said the Company proposes to utilise the net proceeds towards prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; funding the capital expenditure requirements for setting up of a manufacturing facility for fluorospecialty chemicals (“Proposed Facility”) pursuant to investment in the wholly-owned subsidiary, Yellowstone Fine Chemicals Private Limited (“YFCPL”); investment in YFCPL to fund its working capital requirements; funding capital expenditure required for expansion of the SI Manufacturing Facility (“Proposed Expansion”); funding working capital requirements of the Company; for purchase of plant and machinery in relation to augmenting infrastructural development at its SI Manufacturing Facility, as well as for general corporate purposes.
Replying to questions, Goenka said the company operations in three segments of Pharma, Packaging and paint coatings in the Indian market witnessed large exports and longstanding presence in Europe.
“We acquired Clariants business in 2010 and today have 30 diketene derivatives with the advantage being our technological scalability. We have storage tanks in Europe to enable delivery of products at short notice,” he said, adding “Our forward strategy includes increasing our global footprint, augmenting growth in current geographies, continuing focus on innovation and leveraging chemistry and technology absorption.”
To questions about the PLI scheme announced for many sectors, he said this scheme would be a bonus for the company, besides also for many other companies setting up new plants. About adoption of ‘green’ solvents, he said the food packaging and Pharma industry was using this, and the coming years would witness a big jump in its consumption itself.
As per the Frost & Sullivan Report, Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. The Company believes that the diversification of its product portfolio into varied chemistries in Specialty Intermediates has enabled them to create a niche for themselves.
The Company has long-standing relationships with marquee customers like Alembic Pharmaceuticals Limited, Dr. Reddy’s Laboratories Limited, Hetero Labs Limited, Laurus Labs Limited, Macleods Pharmaceuticals Private Limited, Mylan Laboratories Limited, Neuland Laboratories Limited, Suven Pharmaceuticals, Granules India, UPL Limited and Syngenta Asia Pacific Pte. Ltd. and Sudarshan Chemicals Industries Limited.
It has significantly expanded its operations and global footprint with customers in more than 30 countries, including China, the Netherlands, Russia, Singapore, the United Arab Emirates, the United Kingdom and the United States of America.
Axis Capital Limited and DAM Capital Advisors Limited (Formerly known as IDFC Securities Limited) are the Book Running Lead Managers to the Offer (“BRLMs”).
