Aether Industries shares listed on the BSE and NSE on Friday, June 3. Shares of the specialty chemicals manufacturer began trading on BSE at Rs 706.15 per share up 9.99 per cent from the upper end of IPO price band of Rs 610-642 per share. On NSE the shares were trading at Rs 704 apiece.
The initial public offering (IPO) of Aether Industries was open for subscription between May 24-26 as the company sold its shares in the range of Rs 610-642 to raise Rs 808 crore via primary route. The issue received a solid response from investors with an overall subscription of more than 6.26 times, thanks to solid bidding from institutional buyers whose portion was subscribed 17.6 times and HNI allocation was booked 2.5 times.
The specialty chemical manufacturer came with its Rs 808 crore IPO last month. Of this Rs 627 crore was a fresh issue of equity shares while the remaining Rs 181 crore was an offer for sale (OFS) by existing shareholders of the company. Post issue, the promoter & promoter group shareholding will drop to 87.1 per cent from 97 per cent. Public shareholding in the company will increase to 12.9 per cent from 3 per cent earlier.
Proceeds from the fresh issuance will be used to fund capital expenditure requirements for a proposed new project in Surat, Gujarat, fund working capital requirements and for payment of debt.
Aether Industries is a specialty chemicals manufacturer in India, focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.
It started with a research and development (R&D) unit in 2013 and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments.
The company’s operating revenue grew to Rs 450 crore in FY21, as compared to Rs 302 crore in FY20, while its net profit climbed to Rs 71 crore in FY21, from Rs 40 crore in FY20.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “Ather Ltd. has debuted at Rs. 704 i.e. 10 per cent above its issue price. The company’s good listing can be attributed to a recovery in market sentiments, outstanding growth prospects of the company, and a good response from the investors. The company is one of the fastest-growing specialty chemical companies in India, having a high focus on d R&D, relying on differentiated chemistry & technological core competencies, and a robust product selection process. The Indian chemical industry is witnessing a structural change due to the shift of manufacturing activities from China to India and the focus on green chemistry. The issue was priced at a P/E of 72.30 based on annualized FY22 numbers. However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects. Those who applied for listing gains can maintain a stop loss of Rs. 675. New investors can buy for the long term and existing investors are recommended to stay invested in the company.”
Read all the Latest Business News here
Comments
0 comment