Ami Organics IPO was subscribed 64.54 times on the final day of issue
Ami Organics’ Rs 569.64 crore initial public offering (IPO) was subscribed 64.54 times on the third and final day of its issue, according to subscription data on the stock exchanges. The leading research and development-driven manufacturers’ IPO opened for bidding on Wednesday, September 1, and closed today – September 3 – remaining open for investors for a period of three days. The company had fixed the price band at Rs 603 – Rs 610 per share for the issue.
On Friday, non-institutional investors or NII showed overwhelming interest as the portion reserved for them was subscribed 154.81 times – the highest among the three groups of investors. The portion set aside for the qualified institutional buyers or QIB was subscribed 86.64 times, while the portion reserved for the retail individual investors was subscribed 13.36 times.
Ami Organics Limited is a leading research and development-driven manufacturer of specialty chemicals. It manufactures different types of advanced pharmaceutical intermediates and active pharmaceutical ingredients (API).
The company is one of the leading manufacturers of certain pharma intermediates such as Trazodone, Dolutegravir, Nintedanib, Entacapone, and Rivaroxaban. It will utilise the pre-IPO and fresh issue proceeds to repay debts and to meet its working capital requirements.
”Ami Organics Ltd (AOL), is focused towards manufacturing of advanced pharma intermediates (PI) for regulated/generic APIs and New Chemical Entities (NCE) and key starting material for agrochemical and fine chemicals.
We like AOL given its wide product portfolio in PIs, diversification efforts into other specialty chemical space, strong clients’ relation across geographies and robust financials. It is well placed to tap opportunity in the fast-growing specialty chemical market by leveraging its strong R&D and expanding product portfolio.
The issue is reasonably valued at 41.2x FY21 P/E on post issue basis (avg. peer FY21 P/E of 45x), while it enjoys higher growth. We believe that the market would like to give premium valuation to such niche stories. Recommend Subscribe for Listing Gains,” domestic brokerage firm Motilal Oswal said in an IPO note.
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