Ami Organics IPO: All You Need To Know

Ami Organics Ltd. will launch its Rs 570-crore initial public offering on Wednesday as it aims to pare debt, and promoter and existing shareholders look to partly exit the specialty chemicals maker.

Peers

Ami Organics’ listed peers are Aarti Industries Ltd., Hikal Ltd., Valiant Organics Ltd., Vinati Organics Ltd., Neuland Laboratories Ltd. and Atul Ltd.

Risks

• Any manufacturing or quality control problems may subject the company to regulatory action, damage its reputation and have an adverse effect on its business, results of operations, financial condition and cashflows.

• The company derives a significant portion of its revenue from sale of products in certain therapeutic areas and any reduction in demand for these products, or if such products become obsolete due to a breakthrough in the development of alternative drugs, could have an adverse effect on its business.

• Its inability to meet its obligations, including financial and other covenants under its debt financing arrangements, could adversely affect its business, results of operations and cashflows.

• Its operations are dependent on continuous R&D to develop and commercialise new products, and its inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet its customers’ demands may adversely affect its business.

• The company’s business is working capital-intensive. If it experiences insufficient cashflows from its operations or is unable to borrow to meet working capital requirements, it may materially and adversely affect its business and results of operations.