Ami Organics’ initial public offering (IPO) of Rs 569.64 crore was subscribed 64.54 times on the third and final day of issuance, according to stock exchange bids. The IPO of leading research and development-driven manufacturers opened for bidding on Wednesday, September 1, and will be closed for a three-day period to investors today – September 3 – September 3. The company had set the price range at Rs 603 – Rs 610 per share for the issuance.
On Friday, non-institutional investors or NII showed overwhelming interest as the portion reserved for them was subscribed 154.81 times – the highest of the three investor groups. The portion reserved for qualified institutional buyers or QIB was subscribed 86.64 times, while the portion reserved for private retail investors was subscribed 13.36 times.
Ami Organics Limited is a leading research and development based specialty chemicals manufacturer. It produces various kinds of advanced pharmaceutical intermediates and active pharmaceutical ingredients (API).
The company is one of the leading manufacturers of certain pharmaceutical intermediates such as trazodone, dolutegravir, nintedanib, entacapone and rivaroxaban. It will use the proceeds from the pre-IPO and the new issuance to pay down debt and meet its working capital requirements.
”Ami Organics Ltd (AOL), is focused on the production of advanced pharmaceutical intermediates (PI) for regulated/generic APIs and new chemical entities (NCE) and key starting materials for agrochemical and fine chemicals.
We like AOL for its broad product portfolio in PIs, diversification efforts into other specialty chemical markets, strong customer relationships across geographies and robust financial data. It is well positioned to seize opportunities in the fast-growing specialty chemicals market by leveraging its strong R&D and expanding product portfolio.
The issuance is valued fairly at 41.2x FY21 P/E on an issuance basis (average FY21 P/E peer of 45x), while experiencing higher growth. We believe that the market wants to give such niche stories a premium valuation. Recommend Sign up for listing gains,” said domestic brokerage firm Motilal Oswal in an IPO note.