The initial public offering (IPO) of Laxmi Organics, a specialty chemicals manufacturer, opened today with a price band of Rs 129-130 per share. The issue, which will close on March 17, aims to raise Rs 600 crore through the IPO.

Speaking to CNBC-TV18, Ravi Goenka, Promoter & MD of the company, said they will be able to double the topline in the next 3-4 years with capacities coming up. He said that the company will be net debt free post IPO.

“Today our net debt is less than 0.2. So, we would be a very strong balancesheet post the IPO. We would have enough reserves to take advantage of the opportunities that are coming the way of the entire chemical industry,” he said.

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Goenka said that the Speciality Intermediates (SI) business will grow much faster than the Acetyl Intermediates (AI) business. "Our Acetyl Intermediates business is today almost 60% of our topline and contributes 40% of our bottomline. This is the business that is steady with moderate margins. This is around 10% margin. Our Speciality Intermediates business is today 40% of our business and going forward this is going to be growing at a much a faster pace than our AI business. Here the margins are definitely much higher, in excess of 22-25%,” he said.

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(Edited by : Priyanka Rathi)