Speciality chemical manufacturer, Laxmi Organic Industries, is set to open its initial public offer for bidding on March 15. The Rs 600 crore public offer comprises of fresh issue of Rs 300 crore along with an offer for sale of Rs 300 crore by promoter-Yellow Stone Trust.
The company, in consultation with merchant bankers, is expected to announce an IPO price band in the coming days.
The company has already raised Rs 200 crore by issuing 1,55,03,875 equity shares in a pre-IPO placement.
Laxmi Organic intends to utilize fresh issue and pre-IPO placement funds for investment in a wholly-owned subsidiary, Yellowstone Fine Chemicals (YFCPL). It will set-up a manufacturing facility for fluorospecialty chemicals and working capital requirements. It will also use the funds for capital expenditure requirements, for the expansion of the SI manufacturing facility. The fresh issue will be used for repayment of debt availed by the company and subsidiary, Viva Lifesciences (VLPL).
It is the only manufacturer of diketene derivatives in India with a market share of approximately 55 per cent. In terms of revenue in FY20 and has one of the largest portfolios of diketene products.
This IPO will close on March 17.