IIFL, GMO, WhiteOak, Malabar invest Rs 200 crore in Laxmi Organic pre-IPO round

MUMBAI: Laxmi Organic Industries, a Mumbai-based chemical manufacturer, has raised Rs 200 crore in a share sale before its initial public offer (IPO) scheduled in the third week of March. Grantham, Mayo & Van Otterloo, White Oak Capital Management and Malabar Investments were the investors in the pre-IPO placement priced at Rs129 a piece, according to bankers. At the price of the share sale, the company is valued at Rs 3,400 crore.

Laxmi Organic filed its draft red herring prospectus (DRHP) with the market regulator in December 2020 to raise about Rs 800 crore through a fresh issue of shares and offer for sale by promoter Yellow Stone Trust. The company will use the issue proceeds to set up a plant for fluorospecialty chemicals and repayment of debt.

In 2012, International Finance Corporation took a 10.05% equity stake in the company at face value of Rs 10 each which the company bought back in January last year at an aggregate amount of Rs 82 crore.

The company is the largest manufacturer of ethyl acetate in India with a market share of roughly 30% besides being a leader in the diktene derivatives market.

Laxmi Organic has a diversified product portfolio across varied chemistries in specialty intermediates, a global footprint with customers in over 30 countries including China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and United States of America and caters to marquee names such as Alembic Pharma, Dr. Reddy's, Hetero Labs, Laurus Labs, Macleods Pharma, Mylan Labs, United Phosphorous, Syngenta Asia Pacific amongst others.