The offer was subscribed 2.36 times so far. It has seen applications for 1,54,16,160 shares against 65,42,342 shares that are on offer.
Surat-based Ami Organics and its shareholders are eyeing to raise about Rs 570 crore through its primary offering. The issue consists of issuance of fresh equity shares worth Rs 200 crore and an offer for sale (OFS) by promoters and existing shareholders of up to 6,059,600 equity shares.
The IPO is priced in a band of Rs 603-610 per share. Investors can make a bid for a minimum of 28 equity shares and in multiples of 28 shares thereafter. Half of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be alloted to non-institutional investors (NIIs). Retail investors will have 35 per cent of the issue size earmarked for them.
The net proceeds from the fresh issue will be utilised for repaying certain debts, and working capital along with general corporate purposes.
Analysts noted that the issue is reasonably priced. Considering the FY21 adjusted EPS of Rs 14.82 on a post issue basis, the company is going to list at a PE of 41.16 with a market cap of Rs 2,222.7 crore, while its peers namely Aarti Industries and Hikal are trading at a PE of 54.20 and 46.13, respectively.
“We assign ‘subscribe’ rating to this IPO as the company has a strong and diversified product portfolio supported by strong R&D and process chemistry skills and is available at reasonable valuation as compared to its peers,” said Marwadi Shares and Finance.
