The Rs 600-crore Laxmi Organic Industries' initial public offering (IPO) is scheduled to open for subscription next week on March 15, 2021.

The Rs 600-crore Laxmi Organic Industries Initial Public Offering (IPO) is scheduled to open for subscription next week on March 15, 2021. The Issue comprises a fresh issue of equity shares worth Rs 300 crore and offer-for-sale (OFS) of Rs 300 crore by the promotor Yellow Stone Trust, according to the red herring prospectus (RHP) filed. The book running lead managers to the Mumbai- based Laxmi Organic are Axis Capital Ltd and DAM Capital Advisors Ltd (formerly known as IDFC Securities Limited), while the register to the issue will be Link Intime India Private Ltd. The public issue will close for subscription on March 17, 2021. 

Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told that the expected price band of the issue is Rs 130 per share. Doshi said in the grey market, Laxmi Organic shares were seen trading at Rs 260, over the predicated issue price of Rs 130 apiece, implying a premium of 100 percent. Upon listing, Laxmi Organic Industries will join the listed peers such as Aarti Industries Ltd, Atul Ltd, Fine Organic Industries Ltd, Navin Fluorine International Ltd, Rossari Biotech Ltd, and SRF Ltd. Manthan Mehta, Head Unlisted & Private Equity Rurash Financial Service Pvt Ltd. The Laxmi Organic Industry is the largest Indian exporter of ethyl acetate, especially in Europe. Given the company's experience and a direct presence in Europe, it will further help to strengthen its position and increases sales in the future.   

Laxmi Organic Industries will be at a greater advantage in the domestic market. 

Laxmi Organic Industries has planned to utilize the net proceeds from the issue for setting up a manufacturing facility for fluorospecility chemicals, working capital requirement, and for the purchase of plant and machinery for augmenting infrastructure development. In addition, funds would be used for prepayment or repayment of all or portion of outstanding loans and funding capital expenditure requirements for expansion of its SI Manufacturing Facility, besides general corporates purposes. The company will not receive any proceeds from the OFS.