Laxmi Organic Industries Limited (Laxmi Organic) will open the bid/offer period in relation to its initial public offering (IPO) of equity shares (Offer/ IPO") on Monday, March 15, 2021 and close on Wednesday, March 17, 2021.

The price band for the offer has been decided at Rs. 129 - Rs. 130 per equity share. The company may, in consultation with the book running lead managers (BRLMs) consider participation by anchor investors which shall be one working day prior to the bid/offer opening date, i.e. Friday, March 12, 2021.

The Offer aggregating up to Rs. 600 crores and comprises of a fresh issuance of equity shares of up to Rs. 300 crores (Fresh Issue) and an offer for sale of equity shares up to Rs. 300 crores by promoter selling shareholder, Yellow Stone Trust.

The company, in consultation with the BRLMs, undertook a private placement of 15,503,875 equity shares aggregating to Rs. 200 crores (Pre-IPO Placement). The size of the Fresh Issue, after the Pre-Ipo placement, has been reduced from Rs. 500 crores to up to Rs. 300 crores and consequently, the offer size has been reduced from up to Rs 800 crore to up to Rs 600 crore.

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 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 ; 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.

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. 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.

The company has long-standing relationships with marquee customers like Alembic Pharmaceuticals, Dr. Reddy's Laboratories, Hetero Labs, Laurus Labs, Macleods Pharmaceuticals, Mylan Laboratories Limited, Neuland Laboratories, Suven Pharmaceuticals, Granules India, UPL Limited and Syngenta Asia Pacific and Sudarshan Chemicals Industries and 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 appointed as the Book Running Lead Managers to the Offer.