Laxmi Organic IPO was subscribed nearly 107 times. Many analysts are expecting a strong listing of this IPO considering attractive valuations and strong fundamentals of the company. The management of the company is extremely strong on focussed on the growth of the company.

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Retail Investors are expecting strong gains on listing in this counter as many analysts seeing 35% - 45% gains over the listing price. The Issue summary Price band is Rs 129 – Rs 130. The Bid Lot is 115 Shares and in multiple thereof.  

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Laxmi Organic Industries was incorporated on May 15, 1989. The company is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost 3 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.

Laxmi Organic Industries products are currently divided into 2 broad categories, namely the Acetyl Intermediates (“AI”) and the Specialty Intermediates (“SI”). The Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents, while the Specialty Intermediates comprises of ketene, diketene derivatives namely esters, acetic anhydride, amides, arylides and other chemicals. Laxmi Organic is the only manufacturer in India of diketene derivatives with a market share of approximately 55 % in terms of revenue in Fiscal 2020.

Laxmi Organics Industries Valuation & Recommendation:

Laxmi Organics Industries will continue to leverage their know-how in complex chemistries and their experience in engineering to focus on the addition of downstream and value-added products to their product portfolio as well as addition of fluoro specialty products to their portfolio. The offer is priced at an annualized PE of 32x on H1FY21 which is fairly priced as compared with peers.