Ami Organics Ltd. IPO Review By Himanshu Verma | Himanshu Gyan | Must check!
Ami Organics Ltd. IPO
Himanshu Gyan (Investing & learning Simplified) suggestion for this IPO at the end of this blog, don't forget to check our suggestion/view on this IPO, whether you should apply or not...
- Ami Organics Incorporated in 2004.
- Ami Organics Limited is one of the leading research and development-driven manufacturers of specialty chemicals.
- 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.
- It supplies its products to more than 150 customers (including international customers) directly in India and in 25 countries overseas i.e. Europe, USA, China, Israel, Japan, Latin America, etc.
- Laurus Labs, Cadila Healthcare, Cipla Ltd are some of the domestic customers whereas Organike s.r.l.a. Socio Unico, Fermion Oly, Medichem S.A., and Midas Pharma GmbH are some of the international customers.
- The company has three manufacturing facilities in Gujarat situated at Sachin, Ankleshwar & Jhagadia, with an aggregate installed capacity of 6,060 MTPA.
- One of the leading manufacturers of certain Pharma Intermediates i.e. Dolutegravir, Trazodone, Entacapone, Nintedanib, and Rivaroxaban.
- Strong and diversified product portfolio with 450+ Pharma Intermediates across 17 therapeutic areas.
- Naresh Kumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel, and Parul Chetankumar Vaghasia are the company promoters.
- The offer will open for bidding during September 1-3. The anchor portion, if any, will open for one day on August 31.
- The price band for the offer has been fixed at Rs 603-610 per equity share.
- Public Issue Details:
- The company has already raised Rs 100 crore in a pre-IPO placement. Hence, the fresh issue size has been reduced to Rs 200 crore from Rs 300 crore earlier.
- The company will raise Rs 565.39 crore at the lower end of the price band, and Rs 569.63 crore at the upper end.
- The net proceeds from the fresh issue and the funds from the pre-IPO placement will be utilized to repay debts (Rs 140 crore), working capital requirements (Rs 90 crore), and general corporate purposes.
- Investors can bid for a minimum of 24 equity shares and in multiples of 24 equity shares thereafter. Retail investors can bid for a minimum of Rs 14,640 worth of shares in a single lot, and the maximum investment would be Rs 1,90,320 for 13 lots, as they are allowed to invest up to Rs 2 lakh.
- Half of the offered size is reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and the remaining 35 percent for retail investors.
- Financials:
Ami Organics registered a growth in revenue from operations at a CAGR of 19.50 percent during FY19-FY21 to Rs 340.61 crore and profit grew at a CAGR of 52.25 percent in the same period, to Rs 54 crore in FY21.
- The company will finalize the IPO share allotment on September 8, and the funds will be refunded around September 9, 2021.
- Equity shares will be credited to eligible investors' Demat accounts around September 13. Trading in shares will commence with effect from September 14 on both BSE and NSE.
Our Suggestion/Views
Himanshu Gyan (Investing & learning Simplified) suggesting investors to apply for this IPO to get the listing gain and for the long term also can be beneficial for long-term investors (up to 1-2 years).
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