Laxmi Organic Industries Limited has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its maiden public issue to raise approximately Rs 800 crores. The IPO is a fresh issuance aggregating to Rs 500 crores and an Offer for sale of face value of Rs 2 each by the Promoter Selling Shareholder, YellowStone Trust aggregating to Rs. 300 crores.

“We are a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. We are currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market. We  are  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,” the DRHP reads.

Laxmi Organic has significantly expanded its scale of operations and has set a global footprint with customers in over 30 countries including China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and United States of America.

The company has been in strong business relationship with Alembic Pharmaceuticals, Dr. Reddy's Laboratories, Hetero Labs, Laurus Labs, Macleods Pharmaceuticals, Mylan Laboratories, Neuland Laboratories, Suven Pharmaceuticals, Granules India, United Phosphorous, Syngenta Asia Pacific and Sudarshan Chemicals.

The net proceeds from the issue will be utilised for funding its capital expenditure planned towards setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery, prepayment or repayment of all or a portion of certain outstanding, upgrading existing units besides general corporate purposes.

Axis Capital and DAM Capital Advisors are appointed as the BRLMs to the Issue.