India: Specialty chemicals maker Fine Organic to launch $89m IPO on June 20

Photo: Reuters

Specialty chemicals maker Fine Organic Industries Ltd on Thursday said that it will launch its Rs600 crore initial public offering (IPO) on 20 June.

Fine Organic has set a price band of Rs780-783 per share for the IPO, which will close on 22 June. The Fine Organic IPO—a pure offer for sale—will see the company’s promoters sell 7.66 million shares.

Fine Organic is one of the largest manufacturer of oleochemical-based additives in India. The company produces a wide range of specialty plant derived oleochemicals-based additives used in the food, plastic, cosmetics, paint, ink, coatings and other specialty applications in various industries. The company currently has three production facilities situated in the state of Maharashtra.

As of 31 December, Fine Organic had a range of 387 different products sold under the ‘Fine Organics’ brand, according to the company’s IPO prospectus. Its customers include large FMCG companies such as Hindustan Unilever and Parle Products.

For the financial year 2016-17, the company reported a revenue of Rs818.1 crore, as against a profit of Rs694.9 crore in the previous year. In 2016-17, the company reported a profit of Rs80.2 crore, as compared to a profit of Rs77.7 crore in the previous financial year.

Investment banks JM Financial and Edelweiss are managing the Fine Organic share sale.

Fine Organic is not the only company launching an IPO this month. State-owned engineering consultancy RITES Ltd is also launching its IPO on 20 June. The company has set a price band of Rs180-185 per share. The IPO is a pure offer for sale by the government, which is selling a 12% stake in the company and aims to raise Rs466.2 crore.

Earlier this year, another specialty chemicals company, Galaxy Surfactants Ltd, hit the primary market with its initial share sale. The Rs937 crore IPO of Galaxy Surfactants was subscribed 19.76 times.

Incorporated in 1986 and based in Navi Mumbai, Galaxy Surfactants manufactures products used in consumer-focused personal and home care products such as skin, hair and oral care items and cosmetics, toiletries and detergents.

So far this year, 15 companies have raised Rs20,435 crore through IPOs, according to data from primary market tracker Prime Database.

This article was first published on Livemint.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.