Ami Organics Limited had opened its initial public offering (IPO) on September 1. After three days of trading on the market, the issue had come to a close on September 3, 2021. Over the course of the trading days, the Ami Organics IPO saw robust participation from its investor groups. They had subscribed to the issue a total of 64.54 times on the last day of bidding. The public issue had received bids for around 42.22 crore equity shares against the IPO size of 65.42 lakh equity shares, as per the subscription data on the exchanges.
Of all the investor groups, the non-institutional investors (NIIs) were the ones that subscribed the most to the issue. The subscription for the group clocked in at 154.81 times. Following them were the qualified institutional buyers (QIBs) who had subscribed to the issue around 86.64 times over the course of the public issue. Lastly, there were the retail investors who had subscribed to the issue around 13.36 times over the course of the three trading days.
Ami Organics IPO has an issue size of Rs 569.64 crore that consists of both a fresh issue and an offer for sale (OFS). The fresh issue values in at around Rs 200 crore, while the OFS aggregates up to Rs 369.64 crore. The company had already mobilized around Rs 171 crore from its anchor investors on August 31, 2021, a day before the issue opened. This was achieved at the upper end of the price band which was Rs 610 per equity share.
In regards to post-IPO activities, the company plans to execute its basis of allotment on September 8. The refunds to the unsuccessful bidders would take place the following day on September 9. The investors who managed to snag some shares will see them accredited to their Demat accounts on September 13. The listing date for the issue is set for September 14, but this is tentative and could change.
The grey market premium (GMP) for the issue stood at Rs 105 as per information on IPO Watch. This indicated that the issue was trading at a premium of Rs 708 to Rs 715 on the unlisted grey market.
The Ami Organics IPO was a book-built issue and had a price band of Rs 603 to Rs 610 per equity share with a face value of Rs 10 per share. The issue was promoted by Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel and Parul Chetankumar Vaghasia. The object of the offer was to use the proceeds of the IPO for the repayment and pre-payment of certain financial facilities availed by the company. The rest would go towards funding working capital requirements for the company as well as general corporate purposes.
Speaking on the condition of the global chemicals market, ICICI Direct said, “The global chemicals market is valued at around $4,738 billion (bn) in 2019 with China accounting for major market share (40 per cent) in the segment followed by European Union (14 per cent) and US (13 per cent). India accounts for a 3.5 per cent market share in the global chemicals market. The global chemicals market is expected to grow at 6.2 per cent CAGR; reaching $6,785 bn by 2025. Going forward, APAC is anticipated to grow at the fastest rate of 7-8 per cent during the forecast period (2019-25F).
“Ami Organics is one of the leading manufacturers of certain Pharma Intermediates i.e. Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The Company has a strong and diversified product portfolio with 450+ Pharma Intermediates across 17 therapeutic areas. Ami Organics has an extensive geographical presence and diversified customers. In addition to all this; the company has strong R&D, sales and marketing capabilities. In view of all these competitive strengths; investors may apply to this IPO with a long-term investment view,” said ProfitMart in a note.
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