IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 15th Mar 2021
- IPO End Date – 17th Mar 2021
- IPO Price – INR 129 – 130
- IPO Lot Size – 115
- Minimum investment required – INR 14,950
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Business Details
Laxmi Organics as the name suggests is an Chemical sector Company (Specialty chemicals to be precise). The manufacturing unit is located in Raigad in Maharashtra which is near to Mumbai. Thus it gets access to Mumbai port as well.
Below are the key products from the Company along with application of these products in various industries. It is very important to understand application of chemicals manufactured by Chemical Companies as they give fair idea of growth potential of the Company. As majority of Specialty chemicals Company are business to business companies.
- Acetyl Intermediates
- Under this business segment it manufactures products like Solvents and Aldehydes.
- These products have application in Pharmaceutical formulations, printing inks, Adhesives and Coatings.
- Under this business segment it manufactures products like Solvents and Aldehydes.
- Specialty Intermediates
- The products manufactured under this business segment are Diketene derivatives, Esters, Amides and Arylides.
- These products are used as intermediates in manufacturing of agrochemicals and Pigments.
- They also have applications in Pharmaceuticals.
- The products manufactured under this business segment are Diketene derivatives, Esters, Amides and Arylides.
Below are different industries in which products manufactured by this Company finds application into
- Life Sciences
- Mainly used in drugs related to Hypertension and Bacterial infection
- Crop Sciences
- Seed treatment and synthesizing fertilizers
- Paints, Coatings and Inks
- Printing Inks, Dye stuffs and pigments
- Industrial Specialties
- Artificial Flavors
- Solvent Applications
- Solvents for Flexible packaging, Coatings and Laminates
It does have international presence. It has created a subsidiary in Europe to look after the international business. This is positive for the Company.
Financial Snapshot
Below are key financials of the Company for year ending 2020
- Total Assets – 10,706
- Total Income – 15,386
- Profit for year – 702
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 0.00 times
- NII – 0.00 times
- RII – 0.00 times
- Employee – 0.00 times
- Total Subscription is 00.00 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
Laxmi Organics is a Specialty sector Company. This sector is seeing traction in recent times after Corona impact on China. Lot of Chemical companies are facing environment clearance issue in other parts of world so India is emerging as an alternative to those.
It is focused on few niche sector chemicals which have application in wide range of industries. This sectors products from this Company serve are growth oriented. This is big positive for the Company. However the Printing Ink segment will see slow down with time as more and more increase in digital mode of education and work increases.
It will be interesting to see how well it is received by Investors. I am suspecting fair subscription for it. You should read the Make Money with IPO article before planning to invest in this Company as it may not give listing gain or may have slight listing gains.