Ami Organics IPO opens on September 1; check issue price, lot size and other details

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Specialty chemicals manufacturer Ami Organics IPO (initial public offering) will hit the street on September 01 along with Vijaya Diagnostics Centre IPO. The chemical maker plans to raise Rs 569.64 crore through its maiden issue. Here are all the details about the offer.

Open and close date: The offer will open for subscription on September 01 and the bidding will close on September 03. The anchor book, if any, will open for a day before the issue opening, i.e. August 30.

Price band: The price band for Gujarat based company has been fixed at Rs 603-610 per share having a face value of Rs 10 per share.

Lot size: Investors can bid for a minimum of 24 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,640 at the higher end of the price band. A retail investor can at max apply for 13 lots or 312 shares for Rs 1,90,320.

Issue size: The Rs 569.64 crore public offer comprises of fresh issuance of equity shares of Rs 200 crore, and an offer for sale of up to 60,59,600 equity shares totalling to Rs 369.64 crore by promoters existing shareholders.

The promoters and existing shareholders of the company participating in OFS include Parul Chetankumar Vaghasia, Girishkumar Limbabhai Chovatia, Kiranben Girishbhai Chovatia, Aruna Jayantkumar Pandya, Atulkumar Shah, among others.

The company has reduced its fresh issue size to Rs 200 crore from Rs 300 crore after fundraising of Rs 100 crore in a pre-IPO placement.

Objective of issue: The specialty chemical manufacturer will utilise its net proceeds from the fresh issues towards repayment of certain debt, funding working capital requirements and general corporate purposes.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Ami Organics is one of the leading research and development-driven manufacturers of specialty chemicals. The company manufactures different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) for New Chemical Entities, and materials for agrochemicals and fine chemicals.

The company has developed over 450 pharma intermediates across 17 key therapeutic areas. Its customers are spread across India, Europe, USA, China, Israel, Japan, Latin America, etc. Laurus Labs, Cadila Healthcare, Cipla are some of the domestic customers whereas Organike s.r.l.a. Socio Unico, Fermion Oly, Medichem S.A. and Midas Pharma GmbH are some of the international customers. The company has three manufacturing facilities in Gujarat situated at Sachin, Ankleshwar & Jhagadia, with an aggregate installed capacity of 6,060 MTPA.

For the financial year ended March 31, 2021, the company reported total revenue of Rs 341.98 crore compared to Rs 238.89 crore in FY19. During the same period, the company profits more than double to Rs 54 crore in FY21 versus Rs 23.23 crore in FY19.

Book running lead managers and registrar to the IPO: The book running lead managers to the issue are Ambit, Axis Capital and Intensive Financial Services. The registrar to the issue is Link Intime.

Issue timeline: The issue is likely to finalize the basis of allotment by September 08, and the initialization of refunds will take place by September 09. While the credit of equity shares to depository accounts of the allottee will be done on September 13. The diagnostics chain is expected to make its stock market debut on September 14, 2021.