The Ami Organics IPO, which opened on Wednesday, was fully subscribed on Day 1. In the run-up to the IPO, the specialty chemicals manufacturer cleaned up ₹171 crore from anchor investors. Ami Organics has allocated shares in the upper range of Rs to 20 anchor investors 1/28/485 including SBI Healthcare Fund, SBI Mutual Fund, Kuber India Fund and UTI Healthcare Fund. 610 per share. Ami Organics has a price range of ₹603-610 one share for the ₹570 crore initial public offering.
At the end of Day 1, Ami Organics’ IPO was subscribed 1.90 times. The category of qualified institutional buyers (QIBs) was drawn 1.39 times, non-institutional investors 0.4 times and private retail investors (RIIs) 2.82 times.
Ami Organics IPO lot size and grant date
The lot size of Ami Organics is 24 shares, after which a bid can be made in multiples of 24 shares. 35% of the issue volume is reserved for private 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 brokers, the stock allotment on Ami Organics’ IPO is expected to close on September 8th and listing on September 14th.
Ami Organics shares GMP
According to gray market observers, Ami Organics shares are quoted at a premium of ₹100 on the gray market.
The IPO includes the re-issue of shares for up to Rs. 200 crores and an offer to sell of up to 6,059,600 shares by the promoter who sells the shareholders. Also prior to going public, Ami Organics had a pre-IPO placement of shares for ₹100 million.
After the IPO, the shares of promoters and the promoter group decrease from 47.2% to 41.1%.
The proceeds from the new issue will be used to repay certain debts and to fund working capital needs.
Ami Organics Limited is a manufacturer of specialty chemicals with a variety of end uses and a major manufacturer of pharmaceutical intermediaries for certain key active ingredients.
Ami Organics financial data
Ami Organics generates more than half of its sales in global markets. In the fiscal year that ended in March 2021, exports accounted for 51.5% of its revenue, according to brokers. In FY21 the company had sales of ₹340 crore and net profit of ₹54 million euros.
The company recently completed the acquisition of two additional manufacturing facilities from GOL, adding preservatives and other specialty chemicals to their existing product portfolio.
What Brokers Are Saying About Ami Organics’ IPO
Many brokers have recommended subscribing to Ami Organics’ initial public offering. “The company has shown consistent financial performance between fiscal years 2019-2021 with revenue growth of 19.5% and adjusted profit after tax of 52.3% with a CAGR of 52.3%. The financial results for 2020-21 do not include any proceeds from the acquisition of the company. We are positive about the company’s long-term prospects. We therefore recommend a “Subscribe” rating for this IPO, “said domestic broker Anand Rathi.
The Ami Organics issue is “available at the high end of the IPO price range at 41.2 times FY21 earnings, with a market capitalization of Rs. 22,227 million. Additionally, on a FY21 profit basis, the company trades below the industry average of 48.91x. Looking at the P / E in the upper price range, book value and P / E are Rs. 53 and 11.51x, respectively, along with a RoNW of 32.35%, “added Anand Rathi.
Vijaya Diagnostic’s initial public offering also opened for subscription today.
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