Speciality chemicals company Aether Industries’ three day initial public offer (IPO) was subscribed 6.26 times on the final day of its subscription, helped by a strong interest from institutional buyers. The issue was open from May 24 to May 26, 2022.
The initial share sale received bids for 5,85,34,586 shares against 93,56,193 shares on offer. The portion meant for qualified institutional buyers received 17.57 times subscription, while non institutional investors category was subscribed 2.52 times and retail individual investors 1.14 times for the IPO.
As per market observers, Aether Industries shares have remained steady and commanding a premium (GMP) of ₹15 in the grey market today. The shares of the company are expected to debut on stock exchanges BSE and NSE tomorrow i.e., June 3, 2022.
The initial share sale had a fresh issue of up to ₹627 crore and an offer for sale (OFS) of up to 28,20,000 equity shares. Its price range was at ₹610-642 per share. Aether Industries raised a little over ₹240 crore from anchor investors ahead of its public issue.
Proceeds from the fresh issuance will be used to fund capital expenditure requirements for a proposed new project in Surat, Gujarat, fund working capital requirements and for payment of debt.
Aether Industries is a specialty chemicals manufacturer in India, focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.
It started with a research and development (R&D) unit in 2013 and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments.
The company’s operating revenue grew to ₹450 crore in FY21, as compared to ₹302 crore in FY20, while its net profit climbed to ₹71 crore in FY21, from ₹40 crore in FY20.