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Ami Organics IPO Coming Soon: Price, GMP, Company Financials. Should you Subscribe?

Ami Organics eyeing Rs 569.63 crore through the IPO.  The public issue will come to a close on September 3.

Ami Organics eyeing Rs 569.63 crore through the IPO. The public issue will come to a close on September 3.

The grey market premium for the Ami Organic issue stood at Rs 60 on August 30, according to market observers.

Surat based speciality chemical manufacturer Ami Organics is all set to open subscription for the initial public offering on September 1. Ami Organics is targeting Rs 569.63 crore through the initial public offering. However, the public issue will come to a close on September 3. The total IPO size of Ami Organics is Rs 569.63 crores comprises fresh issue aggregating to 200 crore and Offer for Sale (OFS) aggregating up to 369.64 crore. The company is well-known for developing a wide array of pharma medicine across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. The company has developed over 450 pharma intermediates and have three manufacturing units in Gujarat.

The finalisation of the share allotment of this specialty chemical company is expected on 8th September 2021. Meanwhile, shares will be credited to the demat accounts of eligible investors on September 13. The company is expected to be listed on the bourses on September 14.  Along with the Ami Organics,  well known diagnostic chain Vijaya Diagnotics will be open for subscription on September 1. Ami Organics has priced its initial public offering (IPO) between Rs 603 and Rs 610 per share. Bids can be made for a minimum of 24 equity shares and multiples of 24 after that. The retail investors can subscribe for a minimum of Rs 14,640 worth of shares in a single lot, and the maximum would be Rs 1, 90,320 for 13 lots. The grey market premium for the issue stood at Rs 60 on August 30. For the Ami Organics IPO, the retail-individual investors (RIIs) can apply for a total of 13 lots at the upper end of the lot size. In terms of subscriptions, the Retail portion has an allotment of 35 per cent for the IPO. The qualified institutional buyers (QIBs) were given a 50 per cent reservation for the issue. Meanwhile, the non-institutional investors (NIIs) have a 15 per cent reservation allotted to them.

The company has already made it clear that it will use Rs 140 crore from share sale proceeds to repay debt and Rs 90 crore to fund working capital requirements.

Those who want to subscribe to the IPO of Ami Organics, the point to be noted here is the stellar financial performance by the company. The growth of the company in terms of revenue and operation has been robust and sound. Its revenue has risen from 2019 to 2021. The company’s profit rose from 232.95 million in 2019 to 539.99 million in 2021.

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The company has four promoters Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel and Parul Chetankumar Vaghasia.

Should You Invest in Ami Organics IPO?

Throwing light on Ami Organics IPO, Yash Gupta, Equity Research Analyst, Angel Broking Ltd, said, “Ami organics deal in different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) and materials for agrochemical and fine chemicals. Ami Organics has 3 manufacturing facility with aggregate installed capacity of 6060 Mtpa. The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant.  The company sells its product in India as well as in the international market. Ami organic reported revenue growth of 41% in FY2021 at ₹342 crores and profit after tax growth of 96% in FY2021 at ₹54 crores. We have a neutral outlook for Ami organics IPO.”

This chemical manufacturing firm was born in 2004. The company is well known for holding multiple types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) in its diversified product portfolio.   Apart from this, Ami Organics is known for exporting medicines to various countries like USA, China, Israel, Japan, Latin America, etc.

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first published:August 30, 2021, 14:37 IST