Ami Organics' Rs 569.64 crore initial public offering (IPO) opens for subscription today i.e. September 1, 2021. The specialty chemical manufacturer's IPO will consist of a fresh issue of Rs 200 crore and an offer for sale of up to Rs 369.64 crore by existing investors. The company has fixed the price band at Rs 603-Rs 610 per share. Ami Organics' IPO will close on September 3 and the shares are likely to be listed on the bourses on September 14.
Ahead of the IPO, Ami Organics allocated 28,01,485 shares to anchor investors at a price of Rs 610 a share, which is the upper end of the price band. The anchor investors included SBI Mutual Fund, Nippon Mutual Fund, Malabar India Fund, Kuber India Fund, UTI MF and others.
The company will use the pre-IPO and fresh issue proceeds to repay debts and to meet its working capital requirements.
Ami Organics is a manufacturer of specialty chemicals. It develops and manufactures advanced pharma intermediates for regulated and generic active pharmaceutical ingredients.
Axis Capital, Intensive Fiscal and Ambit are the book running lead managers to the public issue, whereas Link Intime is the registrar to the issue.
Should you invest in the Ami Organics IPO?
"The company has shown consistent financial performance with sales growth at CAGR of 19.5 per cent and restated profit after tax growth at CAGR of 52.3 per cent between the Fiscals 2019 and 2021. The financials for 2020-21 doesn't include revenue from the acquisition of the two plants. We are positive on the long-term prospects of the company. Hence, we recommend a "Subscribe" rating to this IPO," Anand Rathi said in an IPO note.
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