Ami Organics jumps 48% on listing after strong IPO demand

Speciality chemicals maker Ami Organics made a spectacular stock market debut on Tuesday as its shares listed at a 48% premium to its initial public offering (IPO) price.

The Surat-based company’s shares listed on the BSE at Rs 902 apiece, up from the issue price of Rs 610. The shares touched a high of Rs 929 apiece before paring the gains on profit-taking to trade around Rs 894 around 10:30 AM.

The company now commands a market valuation of around Rs 3,275 crore. 

The BSE’s 30-stock benchmark was up 0.4% in morning trade.

Ami Organics’ strong debut comes after its IPO received high demand. The company’s IPO was covered 64.5 times at close on September 3.

High-net-worth investors (HNIs) piled up big time while corporate investors and qualified institutional buyers (QIBs) also applied for several times the number of shares reserved for them. 

Non-institutional investors, a segment that essentially captures demand from HNIs and corporates, bid for more than 154 times the number of shares reserved for them, with HNIs leading the show. QIBs applied for more than 86 times the shares allocated for them.

Retail investors were less wide-eyed but they also pitched in in enough numbers. The retail book was covered over 13 times.

The public issue size was Rs 566 crore, including Rs 171 crore that came in via anchor allotment. The company raised Rs 200 crore through a fresh issue of shares. It plans to use the net proceeds from the fresh issue to repay its debt and to meet working capital requirements. The rest of the money went to 20 selling shareholders including Kiranben Girishbhai Chovatia and Parul Chetankumar Vaghasia.

Ami Organics joins speciality chemicals maker Laxmi Organic and Anupam Rasayan to float an IPO this year. The company makes specialty chemicals that are used to develop advanced pharmaceutical intermediates.

The company posted consolidated revenue from operations of Rs 340.6 crore for the year through March 2021, up 42% from around Rs 239 crore for each of the previous two years. Net profit jumped to Rs 53 crore in 2020-21 from Rs 29.5 crore in 2019-20 and 24.7 crore the year before.