J. Sagar Associates (JSA) advised Axis Capital Limited and DAM Capital Advisors Limited (formerly known as IDFC Securities Limited) in relation to the recently concluded initial public offering (IPO) of Laxmi Organic Industries Limited (Laxmi Organic).
The Prospectus was filed on March 18, 2021, comprising of a public issue of approximately 46,153,846 Equity Shares of face value of ₹ 2 each, at a premium of ₹ 128 each, aggregating to ₹ 6,000.00 million, comprising a fresh issue of ₹ 3,000.00 million and an offer for sale by one of the promoters of Laxmi Organic, namely, Yellow Stone Trust, aggregating to ₹ 3,000.00 million. As per news reports, Laxmi Organic’s IPO received over 20 lakh applications from retail investors and an overall subscription of 176x (QIBs – one of the highest in fiscal 2021), 217x (NIIs) and 18x (Retail), garnering over ₹ 440,000 million. The IPO was in addition to a Pre-IPO Placement of ₹ 2,000 million to various marquee investors.
Laxmi Organic is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market (Source: Frost & Sullivan). Laxmi Organic is the only manufacturer of diketene derivatives in India with a market share of approximately 55% of the Indian diketene derivatives market in terms of revenue in Fiscal 2020 and one of the largest portfolios of diketene products (Source: Frost & Sullivan). Over the years, Laxmi Organic has significantly expanded its scale of operations and global footprint with customers in over 30 countries including China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and United States of America.
This is an all-virtual IPO and the sixth IPO by JSA, amidst the ongoing COVID-19 pandemic.
JSA team comprised Lead Partner – Arka Mookerjee; Principal Associate – Siddhartha Desai, Associates – Krupa Brahmbhatt and Ananth Balaji.
Arka’s practice area covers primarily equity capital markets issuances which covers a wide range of products such as Initial Public Offerings, Rights Issues, Qualified Institutions Placements, Initial Public Offering of Infrastructure Trusts and foreign currency convertible bonds.