Lakshmi Organics to raise 800 crore from IPO, petition sent to SEBI

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new Delhi: Mumbai-based specialty chemical company Laxmi Organics plans to launch an IPO. The company has filed a petition (DRHP) with market regulator Sebi on Wednesday. It has sought permission to present an issue of Rs 800 crore.

The company manufactures acetyl and related chemicals. It is the largest ethanol acetate making firm in the country. The company is going to issue fresh shares worth Rs 500 crore in its issue, while its promoter will sell a 300 crore stake under the Yellow Stone Trust Offer for Sale.

The product portfolio of Lakshmi Organics looks quite strong. The company has a 30 per cent share of the ethyl acetate market in India, while 55 per cent of the dictetone derivatives market.

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The company supplies to well-known clients like Alembic Pharma, Dr. Reddy’s Labs, Hetero Labs, Loser Labs, McLeods Pharma, Mylan Labs, Newland Labs, Suven Pharma, Sudarshan Chemicals and Granules India.

Apart from these, many products of the company are also in demand in a variety of industries, including Agrochem, Dye and Pigments, Ink and Coating, Paint Printing and Packaging, Flavors and Fragrances etc.

Apart from India, the company’s business is spread over 30 countries like China, Netherlands, Russia, Singapore, UAE, USA and UK. In 2012, International Finance Corporation bought a 10.05 per cent stake in the company for Rs 82 crore on a face value of Rs 10.

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The company will use the proceeds from this issue for capital expenditure, in which the production unit of Fluoro Specialty Chemical is the head. Apart from this, the company will also use the money for plant and machinery.

The remaining amount remaining from the issue will be used for working capital requirements and general corporate needs. Axis Capital and Dam Capital Adalizers will manage the issue.

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