Laxmi Organic IPO: A leader in basic chemicals, doubling down on speciality
Re-rating driver for Laxmi Organic depends on success in fluorospeciality, which is likely to be margin-accretive
March 16, 2021 / 02:12 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Laxmi Organic Industries Limited’s (LOIL) IPO for Rs 600 crore opens today. This Maharashtra-based manufacturer of ethyl acetate is not only consolidating its position in the cash flow-rich basic chemicals space, but is also expanding fiercely in few of the speciality chemicals space – particularly, fluorochemicals.
Incorporated in 1989, LOIL is among the largest manufacturers of ethyl acetate in India, with a domestic market share of about 30 per cent.
This market share is expected to further increase, post the...