Ami Organics stock is all set to hit the Indian domestic market on Tuesday. The share of the specialty chemicals maker Ami Organics will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 14 at 10 am. The Rs 570-crore Ami Organics initial public offering (IPO) received a stellar response from the investors when it had opened for subscription from September 1-3. Ami Organics IPO was subscribed 64.54 times over the 65.42 lakh shares. The strong IPO subscription, healthy financial and huge export growth potential indicate a healthy listing for Ami Organics share on September 14.
Ami Organics IPO received bids of over 42.22 crore shares against the total issue size of over 65.42 lakh shares, according to the official data. The quota reserved for the qualified institutional (QIBs) buyers was subscribed 86.64 times. The shares allocated for non institutional investors was booked a whopping 154.81 times while that of retail individual investors (RIIs) was subscribed 13.36 times, the data showed.
Ahead of the stock market debut, the unlisted share of Ami Organics was trading at Rs 150 in the grey market, according to IPO Watch. The grey market premium of Ami Organics share was commanding a price of 760 a piece, around 25 per cent up over the issue price of Rs 603-610 apiece. The high grey market premium indicate a decent listing for Ami Organics share on NSE and BSE on Tuesday.
Ami Organics IPO comprises a fresh issue of shares worth Rs 200 crore and an offer for sale of up to 60,59,600 equity shares by existing shareholders. The proceeds from the fresh issue will be used towards repayment of certain debt and funding working capital requirements.
Gujarat based Ami Organics Limited is a research and development driven manufacturer of specialty chemicals with varied end usage, focussed towards the development and manufacturing of pharma intermediates for regulated and generic active pharmaceutical ingredients (APIs) and New Chemical Entities (NCE) and key starting material for agrochemical and fine chemicals.
The company is one of the major manufacturers of pharma intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedaniband Rivaroxaban, according to Frost & Sullivan report. The pharma intermediates which it manufactures, find application in certain high-growth therapeutic areas including anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant, commanding significant market share both in India and globally.
“At the higher price band of Rs 610, the offer is made at around 41.2 times its EPS of Rs 14.8 for the period ended March 31, 2021, on a post-issue equity share capital of Rs 36.44 crore of face value of Rs 10 each. Listed industry peers of the company are Aarti Industries, Hikal, Valiant Organics, Vinati Organics, Neuland Laboratories and Atul," said Capital Market in a IPO note.
“In comparison Aarti Industries trades at 31 times its FY2021 EPS of Rs 30 at the current market price of Rs 932, Hikal trades at 59.8 times its FY2021 EPS of Rs 10.8 at the current market price of Rs 646, Valiant Organics trades at 29.1 times its FY2021 EPS of Rs 44.7 at the current market price of Rs 1299, Vinati Organics trades at 68.4 times its FY2021 EPS of Rs 26.2 at the current market price of Rs 1,793, Neuland Laboratories trades at 26.7 times its FY2021 EPS of Rs 62.9 at the current market price of Rs 1,680 and Atul trades at 41.4 times its FY2021 EPS of Rs 221.2 at the current market price of Rs 9,162," it further added.