The IPO subscription of Surat-based specialty chemicals maker Ami Organics is open from today. All investors must be grappled with a big puzzling question: whether or not to go for the Ami Organics IPO? The answer to this question therefore lies in knowing the fundamentals of the company, and the process for subscribing to this IPO. All investors should also be aware that the public offering will end on September 3. The allocation of shares in this specialty chemicals company is expected on September 8, 2021. The company is expected to be listed on September 14. .
Ami Organics valued its initial public offering (IPO) between Rs 603 and Rs 610 per share. Bids can be made for a minimum of 24 stocks and multiples of 24 thereafter. Regarding the subscription, individual investors can subscribe for a minimum of Rs 14,640 shares in a single lot, and the maximum would be Rs 1.90,320 for 13 lots.
“Most analysts have maintained a neutral outlook for the Ami Organics IPO. The company is available at the high end of the IPO price range at 41.2X, its profit for fiscal year 21 with a market cap of Rs 22,227 million. Also, based on FY21 earnings, the company is trading below the industry average of 48.91x. Looking at the P / B to bank book value ratio the top price and the P / B are Rs 53 and 11.51x respectively with a RoNW of 32.35 percent. We are positive about the long term outlook for the company. Therefore, we recommend an IPO underwriting rating, ”brokerage firm analyst Anand Rathi said.
In terms of subscriptions, the Retail portion has an allocation of 35% for the IPO. Qualified Institutional Buyers (QIBs) received a 50 percent reserve for the issue. Meanwhile, non-institutional investors (NII) have a 15 percent reserve. Another Religare Broking analyst said, “As the company aims to strengthen its R&D capabilities, continue to focus on profitability and improving productivity and expand into new geographies. In addition, the company has 15,830 m² of land in its factory in Jhagadia, so it would seek opportunities for organic or inorganic expansion in the future. Financially, the performance of the company has been solid. From a long-term perspective, we have a positive view of the company.
This chemical manufacturing company was born in 2004. The company is well known for holding several types of advanced pharmaceutical intermediates and active pharmaceutical ingredients (APIs) in its diverse product portfolio. From now on. The company has developed 450 pharmaceutical intermediates in various fields ranging from. antiretroviral, anti-inflammatory, antipsychotic, anticancer, anti-parkinsonian, antidepressant and anticoagulant. Apart from that, Ami Organics is known to export medicine to various countries like USA, China, Israel, Japan, Latin America etc. In India, the company has three manufacturing units in Gujarat.
Another Angel Broking analyst, highlighting Ami Organics, said, “Ami Organics deals with different types of advanced pharmaceutical intermediates and active pharmaceutical ingredients (APIs) and materials for agrochemicals and fine chemicals. Ami Organics has 3 manufacturing plants with a global installed capacity of 6,060 Mtpa. The company has developed more than 450 pharmaceutical intermediates in 17 key therapeutic areas, namely antiretrovirals, anti-inflammatories, antipsychotics, anticancer drugs, antiparkinson drugs, antidepressants and anticoagulants. The company sells its products in India as well as internationally. Organic Friend recorded 41% revenue growth in FY 2021 to 342 crore and after-tax profit growth of 96% in FY 2021 to ₹ 54 crore. We have a neutral outlook for the Ami Organics IPO.
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