New Delhi: The Rs 808 crore initial public offering (IPO) of Aether Industries sailed through on the last and final day of the bidding process, thanks to solid demand from institutional investors.
The issue had kicked off for bidding for investors on Tuesday, May 24. The company is selling its shares in the range of Rs 610-642 apiece.
According to the data from BSE, the investors made bids for 96,13,402 equity shares or 1.03 times compared to 93,56,193 equity shares offered for subscription by 12.40 pm.
The quota for qualified institutional bidders was subscribed 2.02 times, whereas the allocation for employees fetched 94 per cent bids. The portion for retail bidders was subscribed 79 per cent, while HNIs made only 19 per cent bids for their portion.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent allocation. Remaining 35 per cent shares will be given to the retail bidders.
Incorporated in 2013, Aether Industries is a manufacturer of specialty chemicals and sole play in some of the categories. The company is the largest manufacturer of 4MEP, T2E, NODG and HEEP products in the world by volume.
Aether Industries has two manufacturing sites at Sachin in Surat, Gujarat. As of March 31, 2022, Itss product portfolio comprised over 25 products which were sold to over 34 global companies in 18 countries and to over 154 domestic companies.
Majority of the brokerage firms are upbeat on the issue and have recommended subscribing to it following its strong financial, niche products and growth prospects over the year.
At the IPO price of Rs 642, Aether Industries is valued at 32.2X FY24 P/E, said brokerage firm
Securities, which has a ‘subscribe’ rating on the issue, with a target price of Rs 797, signaling an upside potential of 24 per cent.
The brokerage is positive on the growth opportunities for specialty chemicals in pharma, agrochemicals & FMCG space, and improving prospects for contractual manufacturing & CRAMS under Make-in-India initiatives.
Brokerage firm Anand Rathi, which has a ‘subscribe for long term’ rating on the issue, said that looks fairly valued considering the growth opportunities for specialty chemicals in pharma, agrochemicals & FMCG space, and improving prospects.
“Aether Industries is expected to continue to maintain its leadership position in few products, enhanced capacity post expansion plans, synergistic business models, differentiated product portfolios of market-leading products and long-standing relationships with a diversified customer base,” it added.
Aether Industries raised Rs 240.26 crore from anchor investors by allocating a total of 37,42,495 equity shares to anchor investors at Rs 642 apiece, according to a circular uploaded on the BSE website.
and Capital Company are the book running lead managers to the issue, whereas Link Intime India is the registrar to the issue.
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