Ami Organics, Surat based specialty chemical manufacturing company is ready to make debut on the bourses and its initial public offering (IPO) will open next week on September 1, along with the IPO of Vijay Diagnostics. Ami organics is a well known company with over 450 pharma intermediates and three manufacturing units in India. Here are the 10 things that you should know before the issue opens.
1.) Ami Organic IPO Overview and Price Band
The IPO consists of a fresh issue of Rs 200 crore and an offer for sale (OFS) of 60,59,600 equity shares by 20 shareholders. The company plans to raise Rs 569.63 crore at the higher end of the price band. The company will utilise ₹140 crore from the IPO proceeds towards repayment of certain debt and ₹90 crore for funding working capital requirements.
The price band of the three-day share sale has been fixed at ₹603-610 per share.
2) Ami Organic Grey Market Premium
The grey market premium of Ami Organics Limited IPO stood, according to market observers Rs 60, according to market observers.
3.) Important IPO Dates
The issue itself is will open on September 1 and stay open for three days of trading. The public issue will come to a close on September 3.
4) Ami Organics Allotment, Listing Date
After the investors have subscribed, the basis of allotment, refunds and share accreditation will likely take place on September 8, September 9 and September 13 respectively. Though the listing date is yet to be confirmed, it tentatively stands at September 14.
5) IPO Club Lot Size and Subscription Status
The public issue has a minimum lot size of 24 shares and in multiples of 24 equity shares. The Retail investors can subscribe for a minimum of Rs 14,640 worth of shares in a single lot, and the maximum investment would be Rs 1,90,320 for 13 lots. For the IPO, the retail-individual investors (RIIs) can apply for up to 13 lots at the upper end of the lot size.
In terms of subscriptions, the Retail portion has an allotment of 35 per cent for the issue. The qualified institutional buyers (QIBs) were given a reservation of 50 per cent and the non-institutional investors (NIIs) have a 15 per cent reservation allotted to them.
6) The Object of the Offer
The company aims to use the net proceeds from the IPO to repay/ prepay certain financial facilities availed by the company. Another important objective is to meet the capital requirements of the company.
7) Promoters and Other Details
Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel and Parul Chetankumar Vaghasia are the company promoters
8) Company Profile
Ami Organics was brought to life in 2004. It is well known research and development driven manufacturers of specialty chemicals. The company holds multiple types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) in its diversified product portfolio.
The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. It supplies its products to more than 150 customers directly in India and in 25 countries overseas i.e. Europe, USA, China, Israel, Japan, Latin America, etc. Laurus Labs, Cadila Healthcare, Cipla Ltd 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.
9) Company Financials
The company’s profit has been on an upward spiral between 2019 -2021. The company garnered profit after tax at 232.95 million in 2019 which increased to 274.7 million in 2020 and then exponentially rose to 539.99 million in 2021.
10) Competitive Strengths of Ami Organics
The company is one of the pioneers in manufacturing certain Pharma Intermediates that includes Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The company is having a diversified product portfolio with more than 450+ pharma intermidates. Ami Organics is also known for its extensive and widespread geographical presence. With its strong R&D wing, the company’s financial performance is robust and consistent.
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