Ami Organics IPO opens on September 01

Ami Organics Ltd’s initial public offering will open for subscription next week, with the company joining several other specialty chemicals manufacturers that have tapped into the stock market euphoria this year.
The company has fixed the price band for its IPO at Rs 603-610 per share. The offer will open on September 1 and close two days later. It will compete for investor attention with Vijaya Diagnostic’s IPO, which opens the same day.

Ami Organics IPO includes a fresh issue of shares of Rs 200 crore and an offer for sale of 60.59 lakh shares by 20 individual shareholders including Kiranben Girishbhai Chovatia and Parul Chetankumar Vaghasia.

The total IPO size will be Rs 569.63 crore at the upper end of the price band. The minimum bid lot size is 24 shares and in multiples of 24 shares thereafter. This means retail investors can subscribe for shares worth at least Rs 14,640 worth in a single lot. Their maximum investment would be Rs 1,90,320 for 13 lots.
The company reduced the size of the fresh issue to Rs 200 crore from Rs 300 crore after raising Rs 100 crore in a pre-IPO placement offering.

It plans to use the net proceeds from the fresh issue to repay its debt and to meet working capital requirements.

The company’s promoters own a 45.17%stake in the company. Its institutional shareholders include the Malabar India Fund and IIFL Special Opportunities Fund.

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.

Intensive Fiscal Services, Ambit, and Axis Capital are the merchant bankers arranging the IPO.