Domestic funds see outflows after 5 yrs
New Delhi: Specialty chemicals manufacturer Laxmi Organic Industries has filed preliminary papers with markets regulator Securities and Exchange Board of India (Sebi) to raise Rs 800 crore through an initial share-sale.
The initial public offer (IPO) comprises fresh issuance of shares aggregating to Rs 500 crore and an offer-for-sale worth Rs 300 crore by the promoter Yellow Stone Trust, according to the draft red herring prospectus filed with Sebi.
The Mumbai-based Laxmi Organic is a leading manufacturer of acetyl intermediates and specialty Intermediates.
Net proceeds from the issue will be utilised for setting up a manufacturing facility for fluoro specialty 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 outstanding loans, besides general corporate purposes. Laxmi Organic's plans to go to market takes steam after the recent success and fundraising by specialty chemical companies - Rossari Biotech and Chemcon Specialty Chemicals - which were subscribed almost 80 times and 149 times respectively.
The company has 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.
