Laxmi Organics IPO

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Laxmi Organics IPO

7.4

Offline Presence

8.0/10

Market Reputation

7.1/10

Customer Satisfaction

8.0/10

Service

7.1/10

Reliability

7.0/10

Pros

  • Leading Manufacturer of Ethyl Acetate in India
  • End to End Customer Service

Cons

  • Dependency on Global Price Fluctuations
  • Highly Impacted due to COVID-19

Just came across the news mentioning the hugely popular chemicals manufacturing firm Laxmi Organics has decided to go public as they plan to expand their business. This is good news for traders, who can now invest in Laxmi Organics IPO.

IPO or Initial Public Offering is an investor’s gateway into the primary markets. Now, the primary markets are a golden chance for investors to purchase stocks at a low price because there is no involvement of any intermediaries.

Plus, these highly liquid stocks are no less than a red hot commodity and can readily be sold in the secondary market. Many investors consider shares bought in an IPO as one of the finest methods to diversify their portfolio.

The stocks for long term investments are bought in IPO that are meant to bring higher profits in the long run. Thus investors are excited by the prospect of participating in IPOs because the initial price can prove to be a bargain. 

So, if you feel like investing in the stock market, now is the time, grab this opportunity to invest in Laxmi Organics IPO. 

Here is the article that lists all the details regarding the recent offering. 

Laxmi Organics IPO Details

Laxmi Organics, as part of its business expansion plans, has decided to seek public help and filed and has recently filed a DRHP (Draft Red Herring Prospectus) with SEBI

Following the same path as some of its contemporary chemical companies such as Rossari Biotech and Chemcon Specialty Chemicals, Laxmi Organics has filed DRHP in regards to raising around Rs 600 Cr. 

The amount will be used to set up a new manufacturing plant, purchasing new machinery, renovation of some existing plants, among other purposes. This IPO will be their first attempt at raising funding by offering shares of the company. 

The IPO will be auctioning equity shares for a face value of Rs 2, with the entire issue size amounting to Rs 600 cr.

 

A total of [●] shares each with a face value of Rs 2 are up for grabs in the Laxmi Organics IPO. Axis Capital and DAM Capital Advisors have been trusted with the book running responsibility for the issuance of IPO shares.

As per the latest released financial statement, the company has recorded a decline in the total assets from Rs 1070.633 Crore recorded on 31 March 2020 to Rs 1037.132 Crore till 30 September 2020.

The specialty chemicals manufacturer has generated total revenue of Rs 814.355 Crore over the past six months from March 2020 to September 2020 from operations and other sources. 

Laxmi Organics IPO includes Fresh Issue of Rs 300 Crore and Offer for Sale of Rs 300 Crore aggregating up to a total of Rs 600 Crore.


Laxmi Organics IPO Promoter 

The chief promoters for Laxmi Organics IPO are Yellow Stone Trust and Ravi Goenka, whose combined contribution adds up to make 88.87% of the total value of shares. 

Following is the aggregate pre-offer shareholding of the promoters contributing to the IPO.

 


Laxmi Organics IPO Date

Coming to the Laxmi Organics IPO timeline, here are important dates to consider while applying for it.


Laxmi Organics IPO Price

Next in the Laxmi Organics IPO review, we will cover the Laxmi Organics IPO Price. Basically, IPO Price includes two main prices; the Issue price, and Listing price. 

IPO issue price is a price at which any company offers its shares to the investors for the first time in the share market whereas, the listing price is a price at which shares get listed in the stock exchange. 

Laxmi Organics Industries is going to launch its IPO of [●] Equity Shares of ₹2 aggregating up to ₹600 Cr with the fresh issue size of [●] Equity shares of approximately ₹300 Cr

And, offer for sale size is [●] Equity Shares of ₹300 Cr.

Besides, Laxmi Organics IPO has set the price band for its IPO at ₹129 – ₹130 per equity share. 

So here you would be able to make a minimum investment of ₹14,835 and a maximum investment of up to ₹192,855. 


Laxmi Organics IPO Market Lot

Laxmi Organics IPO market lot is another crucial information for the investors looking to participate in the issue. 

However, any information regarding the same is unavailable at the moment. 

 


Laxmi Organics IPO Allotment And Listing 

The shares issued during the IPO will be credited to the investor’s Demat account some days after the issue close date.

 


Laxmi Organics IPO Grey Market Premium

Grey Market Premium (GMP) is defined as the amount at which a company purchases or sells IPO shares in the grey market. Grey market can be an unauthorized place i.e. trade outside the stock market. 

Laxmi Organics IPO Grey Market Premium is ₹60 and Kostak is ₹300. Investors see the GMP as an indicator of knowing the performance of an IPO. 


How To Apply For Laxmi Organics IPO?

Although there are different ways to invest in IPOs, however, applying through ASBA remains the most preferred route.

ASBA (Application Supported by Blocked Account), is a process devised by SEBI to facilitate traders to participate in IPO. Here, in this process, the trader pays the application money, but the amount doesn’t get deducted till the finalization of the shares.

The trader/investor is required to have a bank account in the Self Certified Syndicate Banks (SCSBs). These are certain banks that follow the SEBI regulations. 

So, the individual will need to check the list of SCSBs, which has around 30 banks. 

While applying for Laxmi Organics IPO, an individual must fulfill the following set of criteria:

– The applicant must have a Demat account

– The applicant must have a bank account with a certified SCSB 

If you’re interested in participating in this IPO, you will surely need a Demat account. Let us assist you in doing so. Just fill the form below:

Open Free Demat Account
Enter basic details here and a Callback will be arranged for You!

Apply For Laxmi Organics IPO Through ASBA

An individual can apply for IPO Through ASBA by two methods, online and offline. Follow the steps below:

Online Method

1. The investor can generate the ASBA form by visiting the NSE official website. 

2. The ASBA Form contains details such as –

  • Name of the applicant 
  • PAN Number
  • Demat Account Number 
  • Bid Quantity
  • Bid Price, etc. 

The ASBA form instructs the bank to block the amount to be used for purchasing shares in IPO until the shares are credited to the individual’s Demat account. 

3. Upon submission, the form details are verified by the SCSB before they upload the bid on the NSE ASBA system.

⇒Offline Method 

The individual can visit their SCSB and file an IPO application by filling the ASBA form.


Laxmi Organics Company Information

Laxmi Organics is a specialty chemicals manufacturer headquartered in Mumbai. The company was established in 1992 and has established itself as the leading manufacturer of Acetyl based chemical products and Speciality chemicals.

The company in the DRHP filed with SEBI stated the following objectives for listing the company shares – 

  • setting up a new facility, 
  • funding the working capital requirements, 
  • expansion of their Specialty Intermediates manufacturing facility, 
  • infrastructure development at Specialty Intermediates manufacturing facility, 
  • Prepayment or repayment of certain outstanding borrowings

Wish to open a Demat Account? Please refer to the form below

Open Free Demat Account
Enter basic details here and a Callback will be arranged for You!

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