Laxmi Organic
Mainboard₹600 Cr issue
+20.15%
Listing gain over issue price
Issue size
₹600 Cr
1 lot at cut-off
₹14,950
Lot size
115shares
Open
15 Mar 2021
Close
17 Mar 2021
Allotment
22 Mar 2021
Listing
25 Mar 2021
Listing performance
Issue price
₹130
Listed at
₹156.20
Listing-day close
₹164.60
Latest price
₹150.46
Close on 23 Oct 2026
Listing gain
+20.15%
Return since issue
+15.74%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Mar 2021 – 17 Mar 2021
- Listing date
- 25 Mar 2021
- Face value
- ₹2 per share
- Issue price
- ₹130 per share
- Lot size
- 115 shares
- Total issue size
- ₹600 Cr
- Market cap at offer price
- ₹3,428 Cr
- Promoter holding
- 89.50% → 72.92% pre-issue → post-issue
- ISIN
- INE576O01020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- A-22/2/3, MIDC, Mahad, Raigad, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,38,46,153 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 115 shares per lot, in multiples, at ₹130
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 115 | ₹14,950 |
| Retail (max) | 13 | 1,495 | ₹1,94,350 |
| S-HNI (min) | 14 | 1,610 | ₹2,09,300 |
| S-HNI (max) | 66 | 7,590 | ₹9,86,700 |
| B-HNI (min) | 67 | 7,705 | ₹10,01,650 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,38,46,153
Anchor portion
₹180 Cr
at ₹130 per share
Valuation and performance
Valuation at offer price
₹130 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹3,428 Cr |
About Laxmi Organic
Laxmi Organic Industries Limited, incorporated in 1989, is a leading manufacturer of Acetyl Intermediates (including ethyl acetate, acetaldehyde, fuel-grade ethanol and proprietary solvents) and Specialty Intermediates (including ketene, diketene derivatives, acetic anhydride, amides and arylides). The company operates manufacturing facilities at Mahad, Raigad (for both product lines), two distilleries in Maharashtra (Jarandeshwar and Panchganga), and an innovation centre at Rabale, Navi Mumbai. It generates revenues from domestic sales and exports to over 30 countries. The company is among the largest manufacturers of ethyl acetate in India with approximately 30% market share, and is the only manufacturer of diketene derivatives in India with approximately 55% market share by revenue in Fiscal 2020. The company has been the largest exporter of ethyl acetate from India and one of the largest exporters to Europe since 2012.
Company Analysis
from RHPLaxmi Organic Industries Limited is a leading manufacturer of acetyl intermediates and specialty intermediates with manufacturing operations in Maharashtra, India.
Laxmi Organic Industries Limited, incorporated in 1989, is a leading manufacturer of Acetyl Intermediates (including ethyl acetate, acetaldehyde, fuel-grade ethanol and proprietary solvents) and Specialty Intermediates (including ketene, diketene derivatives, acetic anhydride, amides and arylides). The company operates manufacturing facilities at Mahad, Raigad (for both product lines), two distilleries in Maharashtra (Jarandeshwar and Panchganga), and an innovation centre at Rabale, Navi Mumbai. It generates revenues from domestic sales and exports to over 30 countries. The company is among the largest manufacturers of ethyl acetate in India with approximately 30% market share, and is the only manufacturer of diketene derivatives in India with approximately 55% market share by revenue in Fiscal 2020. The company has been the largest exporter of ethyl acetate from India and one of the largest exporters to Europe since 2012.
specialty chemicalschemical intermediatespharmaceuticals (end customer)agrochemicals (end customer)inks and coatings (end customer)adhesives (end customer)pigments (end customer)packaging (end customer)
Objects of the Issue
- Investment in YFCPL for part-financing its capital expenditure requirements in relation to the setting up of the Proposed Facility ₹604.04 million p.23
- Investment in YFCPL for funding its working capital requirements ₹377.41 million p.23
- Funding capital expenditure requirements for expansion of SI Manufacturing Facility ₹910.63 million p.23
- Funding working capital requirements of the Company ₹351.78 million p.23
- Purchase of plant and machinery for augmenting infrastructure development at SI Manufacturing Facility ₹125.65 million p.23
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and VLPL ₹1,793.14 million p.23
- General corporate purposes p.23
- Investment in YFCPL for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for fluorospecialty chemicals (Proposed Facility) ₹604.04 million p.103
- Investment in YFCPL for funding its working capital requirements ₹377.41 million p.102
- Funding capital expenditure requirements for expansion of the SI Manufacturing Facility ₹910.63 million p.102
- Funding working capital requirements of our Company ₹351.78 million p.102
- Purchase of plant and machinery for augmenting infrastructure development at the SI Manufacturing Facility ₹125.65 million p.102
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company and VLPL ₹1,793.14 million p.102
- General corporate purposes p.102
- Capital expenditure for setting up the Proposed Facility (fluorochemicals manufacturing facility at Lote Parshuram, Maharashtra) ₹733.83 million p.109
- Investment in YFCPL for funding its working capital requirements (fluorochemicals subsidiary for Fiscal 2022 and 2023) ₹377.41 million p.110
- Funding capital expenditure requirements for expansion of SI Manufacturing Facility (increasing capacity by 4,480 MTPA for esters and other products) ₹910.63 million p.112
- Funding working capital requirements of the company for Fiscal 2022 and Fiscal 2023 to support incremental business from SI Manufacturing Facility expansion ₹194.49 million (Fiscal 2022); ₹157.29 million (Fiscal 2023) p.118
- Purchase of plant and machinery for augmenting infrastructure development at SI Manufacturing Facility (fire hydrant systems, boilers, valves) ₹125.65 million p.119
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and VLPL ₹1,793.14 million p.120
- General corporate purposes (balance of net proceeds subject to max 25% limit) p.122
- Funding capex for the Proposed Facility for manufacturing fluorospecialty chemicals p.177
- Expanding the installed capacity of the SI Manufacturing Facility p.177
- Funding acquisition of YCPL from promoters p.191
- Fresh Issue ₹ 3,000.00 million p.364
- Offer for Sale ₹ 3,000.00 million p.364
Issue Structure
- Total Issue
- ₹6,000.00 million (Up to ₹6,000.00 million after Pre-IPO Placement reduction from original ₹8,000.00 million)
- Fresh Issue
- ₹3,000.00 million (Up to [●] Equity Shares aggregating up to ₹3,000.00 million, reduced from originally ₹5,000.00 million due to Pre-IPO Placement of ₹2,000.00 million)
- Offer for Sale
- ₹3,000.00 million (Up to [●] Equity Shares by Yellow Stone Trust aggregating up to ₹3,000.00 million)
- Price Band
- To be determined (Floor Price ₹[●] and Cap Price ₹[●] per Equity Share - to be advertised at least two working days prior to Bid/Offer Opening Date)
- Lot Size
- [●] Equity Shares (minimum Bid Lot to be decided in consultation with BRLMs)
- Face Value
- ₹2 per Equity Share
Business Model
The company manufactures and sells acetyl intermediates and specialty intermediates to customers in pharmaceutical, agrochemical, inks, coatings, adhesives, pigments and packaging industries. Revenue comes from domestic sales and exports. The company typically enters into short-term contracts with customers. It sources raw materials from multiple suppliers, with significant exposure to volatile commodity pricing. The company generates revenue from manufacturing operations at its facilities in Maharashtra and also has international offices in Netherlands, China and United Arab Emirates.
Business Segments
Manufactures ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents
Manufactures ketene, diketene derivatives (namely esters, acetic anhydride, amides, arylides) and other specialty chemicals
Manufacturing specialty intermediates including products acquired from Clariant's diketene business and new products developed internally
Operation of distilleries including the Panchganga Distillery through Saideep Traders, a step-down subsidiary in which Cellbion holds 95% stake
Manufacturing of ethyl acetate, acetaldehyde, fuel-grade ethanol and proprietary solvents for pharmaceuticals, agrochemicals, inks, paints, coatings, printing, packaging and adhesives industries
Manufacturing of ketene, diketene derivatives (esters, acetic anhydride, amides, arylides) and other specialty chemicals for pharmaceuticals, agrochemicals, dyes, pigments, flavours, fragrances and paints/coatings industries. Comprises 34+ products including diketene derivatives portfolio.
Manufacturing of specialty fluorochemicals for pharmaceuticals and agrochemicals. Facility under setup at Lote Parshuram, Maharashtra. Acquired assets from Miteni including technology, patents (14), REACH registrations (41), and 100+ product library.
Manufacturing of acetyl intermediates including ethyl acetate, acetic acid, and acetaldehyde at the AI Manufacturing Facility
Manufacturing of specialty intermediates including diketene and diketene derivatives at the SI Manufacturing Facility
Production of ethanol and specially denatured spirit from molasses at Panchganga and Jarandeshwar Distilleries
Includes ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents
Comprises of ketene, diketene derivatives namely esters, acetic anhydride, amides, arylides and other chemicals
SWOT Analysis
Strengths
- • Leading market position in acetyl intermediates with ~30% market share in Indian ethyl acetate(p.22)
- • Only manufacturer of diketene derivatives in India with ~55% market share(p.22)
- • Largest exporter of ethyl acetate from India(p.35)
- • Significant global footprint with presence in over 30 countries(p.37)
- • Nearly three decades of operational experience in large-scale chemical manufacturing(p.22)
- • Significant revenue contribution from new products developed in-house(p.50)
- • Track record of successful product development and commercialization(p.50)
- • Registered intellectual property including trademarks and patents(p.51)
- • Positive operating cash flow generation(p.52)
- • Strong credit ratings from major rating agencies(p.55)
- • Leading ethyl acetate manufacturer with ~30% Indian market share(p.165)
- • Only Indian manufacturer of diketene derivatives with ~55% market share(p.168)
- • Largest exporter of ethyl acetate from India for multiple years(p.166)
- • Captive power and steam generation providing cost advantage(p.170)
- • Diversified product portfolio with 34+ specialty intermediates(p.170)
- • Established global presence across 30+ countries with marquee customers(p.165)
- • Strong R&D capabilities with DSIR recognition(p.166)
- • Two distilleries providing backward integration for ethanol supply(p.166)
- • Strategic manufacturing facilities with advanced ISO certifications(p.177)
- • Proximity to major ports for efficient import/export(p.177)
- • USDA-certified biobased product recognition(p.177)
- • Captive and renewable power generation reducing operating costs(p.178)
- • Established R&D capabilities with DSIR recognition(p.180)
- • Diversified customer base across 30+ countries with marquee clients(p.181)
- • Direct distribution network in key international markets(p.181)
- • Long-standing operational safety track record(p.179)
- • Regulatory clearances and market permissions obtained(p.351)
- • Clean regulatory and compliance status(p.351)
- • Strong financial position meeting IPO eligibility criteria(p.351)
- • Consistent operating profitability across three years(p.352)
Weaknesses
- • Geographic concentration of manufacturing facilities in Mahad, Maharashtra poses operational risk(p.31)
- • Heavy reliance on few key suppliers for raw materials (75.59%-80.84% from top 10 suppliers)(p.34)
- • High proportion of imported raw materials and coal (70.49%-76.71%) creates import dependency(p.34)
- • Certain subsidiary companies have incurred losses affecting consolidated financial condition(p.50)
- • Outstanding legal proceedings against Company, Promoters and Directors(p.36)
- • Manufacturing facilities exposed to capacity utilization volatility and underutilization risk(p.39)
- • High financial leverage with significant debt obligations(p.46)
- • Loss of key traceable corporate records and RoC filings creates historical documentation gaps(p.41)
- • Subsidiary companies incurring persistent losses(p.50)
- • Negative operating cash flow in past periods(p.52)
- • Dependence on related party transactions with uncertain terms(p.52)
- • Intellectual property protection challenges and reliance on unregistered know-how(p.51)
- • Audit qualification on material subsidiary financial statements(p.56)
- • Unspent CSR expenditure obligations(p.57)
- • High reliance on few marquee customers for significant revenue(p.168)
- • Significant debt obligations requiring repayment from IPO proceeds(p.120)
- • Plant concentration with two facilities both located in Maharashtra(p.166)
- • High dependence on imported raw materials and coal(p.179)
- • Concentration risk with top ten suppliers(p.179)
- • Underutilization of distillery capacity(p.177)
- • Specialty Intermediates showing lower capacity utilization(p.177)
- • Pending patent applications in India(p.182)
- • Promoter litigation risk and acquisition contingencies(p.191)
- • Significant trade receivables exposure and collection risk(p.265)
- • High dependence on limited number of products and markets(p.245)
- • Substantial debt obligations across multiple currencies(p.269)
- • Dispute over distillery plant lease and title in Satara(p.265)
- • Contingent tax liabilities from disallowances and disputes(p.280)
- • Concentration of shareholding with limited liquidity(p.267)
- • Declining operating profits over recent years(p.352)
Opportunities
- • Expansion into fluorospecialty chemicals with new Proposed Facility(p.31)
- • Acquisition of YCPL to expand acetaldehyde and ethyl acetate manufacturing capacity(p.43)
- • Expansion of SI Manufacturing Facility to increase specialty intermediates production(p.40)
- • Growing global Acetyl market projected to reach USD 18.3 Bn by 2024(p.22)
- • Increasing global footprint and augmentation of sales in existing geographies(p.37)
- • Continued focus on research and development for new products(p.31)
- • Expansion into fluorospecialty chemicals business(p.103)
- • Capacity expansion of specialty intermediates manufacturing facility(p.102)
- • Working capital optimization and growth investment(p.102)
- • Debt reduction and improved financial flexibility(p.102)
- • Benefits from listing on stock exchanges(p.101)
- • Global ethyl acetate market growing at 4.5%+ CAGR through 2024(p.166)
- • Fluorochemicals market valued at USD 22.5 Bn growing at 5.1% CAGR(p.173)
- • Indian specialty chemicals market growing at 10.2% CAGR(p.152)
- • Long-term off-take agreements ensuring steady cash flows and capacity utilization(p.173)
- • India gaining market share as alternatives to China amid de-risking trends(p.139)
- • Proposed expansion increasing ethyl acetate capacity by 29,200 MTPA via YCPL acquisition(p.166)
- • Expansion of fluorospecialty chemicals business(p.177)
- • Capacity expansion for Specialty Intermediates(p.177)
- • Acquisition and integration of YCPL for acetyl intermediates(p.177)
- • Renewable energy partnership for cost efficiency(p.178)
- • R&D kilo lab setup at proposed facility(p.180)
- • Applications in high-growth industries(p.181)
- • Government incentive schemes for electronics and specialty chemicals(p.280)
- • Export incentives and duty drawback schemes(p.275)
- • Expansion of subsidiary companies into new markets and segments(p.247)
- • Growth through acquisitions and technology partnerships(p.245)
Threats
- • Continuing impact of COVID-19 pandemic on operations and economic conditions(p.28)
- • India's GDP expected to contract 10.3% in Fiscal 2021 due to COVID-19(p.28)
- • Volatility in raw material pricing, particularly acetic acid and ethanol dependent on monsoons(p.33)
- • Significant exposure to foreign exchange fluctuations affecting exports and imported raw materials(p.34)
- • Global pricing pressure on products from foreign competitors with greater financial resources(p.35)
- • Risk of regulatory changes affecting product manufacturing and customer usage(p.39)
- • Competition from both foreign suppliers and local players in Indian markets(p.35)
- • Exposure to credit risk from customer defaults and payment delays(p.36)
- • Risk of transportation and logistics disruptions affecting supply chain(p.38)
- • Dependence on third-party power and water supply with no assurance of continuity(p.40)
- • Intense competitive pressure and new market entrants(p.53)
- • Dependence on export incentives subject to policy changes(p.54)
- • Exposure to tariff and non-tariff trade barriers(p.54)
- • Economic sensitivity to macroeconomic conditions(p.59)
- • Vulnerability to natural disasters and pandemics(p.58)
- • Regulatory and taxation uncertainty(p.60)
- • Inflation impact on cost structure(p.61)
- • Delays in equipment delivery and cost overruns for facility expansions(p.109)
- • Pending regulatory approvals for proposed fluorospecialty facility(p.110)
- • Commodity price volatility and raw material cost fluctuations(p.108)
- • Regulatory restrictions on toluene and chemical substitution pressure(p.167)
- • Continued uncertainty from COVID-19 pandemic impact on operations(p.175)
- • Global chemical industry exposure to economic cycles and market cyclicality(p.175)
- • Extensive environmental and chemical regulations compliance(p.179)
- • Restricted import policy for ethyl alcohol(p.184)
- • Competition from larger multinational and regional competitors(p.181)
- • Hazardous substance handling and liability requirements(p.183)
- • Controlled substance regulation for acetic anhydride and anthranilic acid(p.184)
- • Significant foreign exchange exposure and currency volatility(p.281)
- • Dependence on global specialty chemicals market volatility(p.245)
- • Import duty and regulatory changes affecting input costs(p.276)
- • Interest rate risk on floating rate borrowings(p.269)
- • Liquidity risk from working capital management(p.241)
- • COVID-19 pandemic impact on operations and supply chains(p.289)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Yellow Stone Trust | Promoter Selling Shareholder | 83.04% | — |
| Ravi Goenka | Promoter | 0.06% | — |
| Ravi Goenka | Promoter | 0.06% | — |
| Yellow Stone Trust (through its trustee, Ravi Goenka) | Promoter | 83.04% | — |
| Ravi Goenka | Promoter | — | — |
| Ravi Goenka | Promoter | 83.10% (as part of promoter group holding 199,938,282 equity shares) | — |
| Yellow Stone Trust | Promoter | 83.04% (199,781,907 equity shares through trustee Ravi Goenka) | — |
| Ravi Goenka Trustee of Yellow Stone Trust | Promoter | 89.27% | — |
| Ravi Goenka | Promoter | — | — |
| Yellow Stone Trust (through its trustee, Ravi Goenka) | Promoter Selling Shareholder | — | — |
| Yellow Stone Trust | Promoter Selling Shareholder | — | — |
Leadership
Ravi Goenka · Chairman and Managing Director
Satej Nabar · Executive Director and Chief Executive Officer
Harshvardhan Goenka · Executive Director
Partha Roy Chowdhury · Chief Financial Officer
Vasudeo Goenka · Chairman Emeritus
Aniket Hirpara · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Laxmi Organic IPO FAQs
What is the lot size of Laxmi Organic IPO?
The minimum lot size of Laxmi Organic IPO is 115 shares. One lot costs ₹14,950 at the cut-off price.
When does Laxmi Organic IPO open and close?
Laxmi Organic IPO opened for subscription on 15 Mar 2021 and closed on 17 Mar 2021.
What is the listing date of Laxmi Organic IPO?
Laxmi Organic IPO listed on 25 Mar 2021.