By: ICN Bureau
Last updated : February 22, 2021 1:49 pm
The IPO comprises a fresh issuance aggregating to Rs 500 crore and an offer for sale by promoter Yellow Stone Trust worth Rs 300 crore.
Mumbai-based Laxmi Organic Industries Ltd, a manufacturer of acetyl intermediates and speciality intermediates, has received a green signal from the regulator Securities and Exchange Board of India (SEBI) for its Initial Public Offerings (IPO. The IPO is expected to hit the public markets early March 2021.
The IPO comprises a fresh issuance aggregating to Rs 500 crore and an offer for sale by promoter Yellow Stone Trust worth Rs 300 crore.
The net proceeds from the issue will be utilised on investment in its wholly owned subsidiary, Yellowstone Fine Chemicals Pvt Ltd (YFCPL) for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for fluorospecialty chemicals, investment in YFCPL for funding its working capital requirements, funding capital expenditure requirements for expansion of its SI manufacturing facility, funding working capital requirements of the company, purchase of plant and machinery for augmenting infrastructure development at SI manufacturing facility, prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and its wholly owned subsidiary, Viva Lifesciences and general corporate purposes.
Laxmi Organic in its DRHP also stated that it may do a Pre-IPO round of Rs 200 crore subject to discussion with its lead managers to the issue.
Laxmi Organic currently has two manufacturing facilities in Mahad, Maharashtra with one facility dedicated to acetyl intermediates and another dedicated to specialty intermediates.