Speciality chemicals manufacturer Laxmi Organics Industries on Friday said it has garnered Rs 180 crore from anchor investors ahead of its initial share-sale, which will open on Monday.
The company’s IPO committee in consultation with merchant bankers has decided to allocate 1,38,46,153 shares at Rs 130 to 15 anchor investors, aggregating to Rs 180 crore, according to circular on BSE website.
The anchor investors are Nomura India Equity Fund, Abu Dhabi Investment Authority, Goldman Sachs, Kuber India (Plutus), Theleme India Master Fund, Malabar India Fund, Ashoka India Opportunities Fund, India Acorn Fund, SBI Mutual Fund, ICICI Prudential Mutual Fund Kotak Mutual Fund, SBI Life Insurance Co Ltd, HDFC Life Insurance Co Ltd and DSP Mutual Fund.
The initial public offer (IPO) comprises fresh issuance of shares aggregating to Rs 300 crore and an offer for sale worth Rs 300 crore by the promoter Yellow Stone Trust.
The company in consultation with the book running lead managers to the issue undertook a private placement of 15,503,875 equity shares aggregating to Rs 200 crore. Consequently, the size of the fresh issue has been reduced from 500 crore to up to Rs 300 crore.
The price band has been fixed at Rs 129-130 per share for the IPO, which will open for public subscription during March 15-17.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional bidders.
The Mumbai-based Laxmi Organics is a leading manufacturer of acetyl intermediates and speciality intermediates.
Net proceeds from the issue will be utilised for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, purchase of plant and machinery and upgrading existing units.
In addition, funds would be used for prepayment or repayment of all or a portion of certain outstanding, besides general corporate purposes.
Laxmi Organic’s plans to go to market gathered steam after the recent success and fundraising by speciality chemical companies — Rossari Biotech and Chemcon Specialty Chemicals — which were subscribed almost 80 times and 149 times, respectively.
The company has a global presence with customers in over 30 countries, including China, the Netherlands, Russia, Singapore, United Arab Emirates, the UK and the US.
Axis Capital and DAM Capital Advisors have been appointed as the book running lead managers to the issue.