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Ami Organics’ IPO, which opened on Wednesday, was fully subscribed on Day 1. Prior to the IPO, the specialty chemicals maker had mopped up ??171 crore from anchor investors. Ami Organics has allocated 28,01,485 shares to 20 key investors, including SBI Healthcare Fund, SBI Mutual Fund, Kuber India Fund and UTI Healthcare Fund, in the upper range of Rs. 610 per share. Ami Organics has set a price range of ??603-610 one part for the ??IPO of 570 crore.

At the end of Day 1, Ami Organics IPO had been subscribed 1.90 times. The Qualified Institutional Buyer (QIB) category was underwritten 1.39 times, Non-Institutional Investors 0.4 times, and Individual Retail Investors (RII) 2.82 times.

Lot size and date of allocation of the IPO of Ami Organics

The Ami Organics lot size is 24 shares and the offer can be made in multiples of 24 shares thereafter. 35% of the size of the issue was reserved for retail investors, 50% for qualified institutional investors and the remaining 15% for non-institutional investors.

Link Intime India Private Ltd is the registrar of the IPO and according to the brokerage firms the allocation of shares in the IPO of Ami Organics is expected to be finalized on September 8 and listing could take place on the 14 September.

Ami Organics shares GMP
According to gray market watchers, Ami Organics shares are listed at a premium of ??100 on the gray market.

The IPO includes a new issuance of equity shares totaling up to Rs. 200 crore and an offer to sell up to 6,059,600 shares by the promoter who sells the shareholders. Also prior to the IPO, Ami Organics undertook a pre-IPO placement of shares aggregating to ??100 crores.

After the IPO, the assets of the promoters and the promoter group will fall to 41.1% against 47.2%.

The proceeds from the new issue will be used to repay certain debts and finance working capital requirements.

Ami Organics Limited is a manufacturer of specialty chemicals with varied end use and is a leading manufacturer of pharmaceutical intermediates for certain key APIs.

Ami Organics Finances

Ami Organics derives more than half of its revenues from global markets. Exports accounted for 51.5% of its revenue in the fiscal year ending March 2021, according to brokerages. In fiscal year 21, the company reported income of ??340 crore and net profit of ??54 crores.

The company recently completed the acquisition of two additional manufacturing facilities operated by GOL, which has added preservatives and other specialty chemicals to its existing product portfolio.

What brokers say about the Ami Organics IPO

Many brokerage firms have recommended subscribing to Ami Organics IPO. “The company has shown consistent financial performance with sales growth at a CAGR of 19.5% and growth in restated profit after tax of 52.3% between fiscal 2019 and 2021. Financial data for 2020-21 does not not include revenues from the acquisition of the two factories. We are positive about the long term outlook for the Company. Therefore, we recommend a “Subscribe” rating to this IPO, ”said national broker Anand Rathi.

The Ami Organics issue is “available at the upper end of the IPO price range at 41.2 times its earnings for fiscal year 21, with a market cap of Rs. 22,227 million. In addition, , based on FY21 earnings, the company is trading below the industry average of 48.91x. Looking at the P / B ratio on the upper price range, book value and P / B are Rs. 53 and 11.51x respectively with a RoNW of 32.35% “, added Anand Rathi.

The IPO of Vijaya Diagnostic was also open for subscription today.

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