Ami Organics IPO: Amy Organics, a specialty chemical maker, will open its Rs 570 crore IPO on September 1 for subscription.
Ami Organics IPO: Amy Organics, a specialty chemical maker, will open its Rs 570 crore IPO on September 1 for subscription. Its shares in the primary market reached a premium of Rs 122 against the issue price. Its price band is Rs 603-610 per share.
Its shares in the grey market are at Rs 732, which is around 20 per cent according to the price band’s upper price. After the success of the IPO, Amy will join the league of Organics Aarti Industries, Hikal, Valent Organics, Vinati Organics, Niuland Organics and Atul.
This is not the first time the company is trying to bring in an IPO. Amy Organics had earlier submitted papers to SEBI in 2018 and sebi had also approved it.
However, the company did not remove the IPO. This time, on the advice of book running lead managers, Amy Organics has made pre-IPO placements of equity shares worth Rs 100 crore. The size of the IPO has come down by Rs 100 crore.
The company had earlier asked for release of Shares worth Rs 300 crore in draft Red Herring Prospectus (DHP).
Ami Organics IPO: Details
It will remain open for IPO subscription from September 1-3.Under the Rs 569.64 crore IPO, the price band for shares with a face value of Rs 10 has been kept at Rs 603-610 per share.
The issue has a lot size of 24 shares, i.e., according to the price band’s upper price, investors will have to invest at least Rs. 14640.
The shares may be allotted on September 8 and may be listed in the market on September 14.
Ami Organics IPO: Here’s the opinion of experts on investment
Amy Organics is the leading pharma intermediates manufacturer used in Active Pharma Ingredients (API). According to analysts, 25 per cent ROCE (Return on Capital Employed) and 32 per cent ROE (Return on Equity) are satisfactory in the last fiscal 2021.
In addition, the company’s capacity utilization level stood at 63 per cent, which could rise after the recent acquisition of facilities in Ankleshwar and Jhagdia.
According to Abhay Doshi, founder of Unlisted Arena.com, it will have a P/E 41.16 that is modeled according to pricing after the issue. In such a situation, long term investment can be made due to strong product portfolio and better market share.
Major domestic customers of Amy Organics are Laurus Labs, Cadila Healthcare and Cipla. Its overseas customers include Socio Unico, Fermion, Medicame SA and Midas Pharma.
Based on EPS (earnings per share) of Rs 14.82 in FY21, the company may be listed at Aarti Industries P/E of 41.16x with a market cap of Rs 22,22.70 crore while Aarti Industries is trading at P/E of 54.20x and Hickle at 46.13x.
In view of this, Marwari Shares and Finance analyst Saurabh Joshi has rated the IPO as subscribed to the company’s better and diversified product portfolio, strong R&D.
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