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    Case Study On Ipo Company-Laxmi Organic Made by - Harshit Rayzada

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    Anubhav Rayzada

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    Case Study On Ipo Company-Laxmi Organic Made by - Harshit Rayzada

    Uploaded by

    Anubhav Rayzada
    28 views8 pages

    Original Title

    Laxmi Organic Industries

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    28 views8 pages

    Case Study On Ipo Company-Laxmi Organic Made by - Harshit Rayzada

    Uploaded by

    Anubhav Rayzada

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 8

    CASE STUDY ON IPO

    COMPANY- LAXMI ORGANIC

    MADE BY- HARSHIT RAYZADA


    LAXMI ORGANIC INDUSTRIES
    Laxmi Organic Industries is a speciality chemical manufacturer. Set up
    headquarters in Mumbai, 1989. It focused on two key business segments:
    Acetyl Intermediates and Speciality Intermediates.
    Acetyl Intermediates unit produces a wide range of acetyl products, including Bulk
    Solvents and Aldehydes.
    Leading manufacturer of Speciality Intermediates such as Ketene & Diketene
    derivatives including Esters, Amides and Arylides. High quality speciality
    intermediates have applications in pharmaceuticals, synthesis and manufacturing of
    agrochemicals, pigments, and more.
    Since its inception, the company has maintained a constant focus on innovation,
    creativity and speed, which has enabled it to meet with new challenges and service
    new opportunities across the world.
    Company Strengths

    1. Leading manufacturer of ethyl acetate in India.


    2. Largest manufacturer of diketene derivative products.
    3. Diversified customer base across industries.
    4. Strategically located manufacturing facilities.
    5. Consistent financial performance.
    Objects of the Issue
    1. Investment in subsidiary firm, Yellowstone Fine Chemicals Private Limited
    (YFCPL) to partly finance the capex to establish a new manufacturing facility.
    2. To invest in YFCPL for financing working capital requirements.
    3. To finance the capex for expansion of SI manufacturing facility.
    4. To finance business working capital requirements.
    5. To purchase plant and machinery for infrastructure development at SI facility.
    6. To make prepayment or repayment of borrowings availed by the company and
    subsidiary, Viva Lifesciences Pvt Ltd (VLPL).
    7. To meet general corporate purposes.
    Laxmi Organic IPO Details
    IPO Opening Date Mar 15, 2021

    Laxmi Organic IPO


    IPO Closing Date

    Issue Type
    Mar 17, 2021

    Book Built Issue IPO

    Details
    Face Value ₹2 per equity share

    IPO Price ₹129 to ₹130 per equity share

    Market Lot 115 Shares

    Min Order Quantity 115 Shares

    Listing At BSE, NSE

    Issue Size Equity Shares of ₹2


    (aggregating up to ₹600.00 Cr)
    Fresh Issue Equity Shares of ₹2
    (aggregating up to ₹300.00 Cr)
    Offer for Sale Equity Shares of ₹2
    (aggregating up to ₹300.00 Cr)
    Laxmi Organic IPO Subscription Status
    (Bidding Detail)
    The Laxmi Organic IPO is subscribed 106.81 times on Mar 17, 2021 6:49:00 AM.
    The public issue subscribed 20.10 times in the retail category, 175.43 times in the
    QIB category, and 217.62 times in the NII category.

    Category Subscription (times)

    QIB 175.43

    NII 217.62

    Retail 20.10

    Total 106.81
    Financial Statement
    LAXMI ORGANICS
    2100

    1800

    1500
    RUPEES IN Cr.

    1200

    900

    600

    300

    0
    YEAR-2019 YEAR-2020 YEAR-2021
    REVENUE 1569 1534 1768
    EXPENSES 1448 1437 1589
    NET PROFIT 72.39 70.08 127.03
    REVENUE EXPENSES NET PROFIT
    CONCLUSION
    1. The company has reserved 50% for QIBs, 15% for HNIs and 35% for Retail investors. LOIL
    issued shares worth Rs. 300 cr. as pre-IPO placement in the month of February and March
    2021. Hence the fresh offer size reduced from Rs. 500 cr. to Rs. 300 cr.
    2. The issue constitutes 17.51% of the post issue paid-up equity capital of the company. The
    issue opens for subscription on March 15, 2021, and will close on March 17, 2021.
    3. This issue is jointly lead managed by Axis Capital Ltd. and DAM Capital Advisors Ltd.
    (erstwhile known as IDFC Securities Ltd.). Link Intime India Pvt. Ltd. is the registrar of the
    issue. Post allotment, shares will be listed on BSE and NSE.
    4. Based on the company’s financial data, the issue appears averagely priced compared
    to industry composite and listed peers. However, considering its long-standing relations
    with marquee global customers and plans to shift for high margin speciality chemicals
    business, it has bright prospects going forward. Investors looking for a long term bet may
    invest in this IPO.

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