Two companies are set to launch their initial public offerings (IPOs) on the first day of September. Healthcare chain Vijaya Diagnostic centre and specialty chemical manufacturer Ami Organics public issues will open on September 1 and the three-day share sale of both the companies will conclude on September 3.
IPOs this week –
Vijaya Diagnostic Centre: The price band of the Vijaya Diagnostic IPO has been fixed at ₹522-531 per share. The issue is entirely an offer for sale (OFS) of 35,688,064 equity shares by the promoters, Dr S Surendranath Reddy and investors Karakoram Ltd and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1. Vijaya Diagnostic shares are likely to list on the stock exchanges on September 14.
“IPO has been priced at price to earning of 64 times of FY2021 earning which is near around the listed players in India. We have a neutral outlook on Vijaya Diagnostic center IPO,” said Yash Gupta, Equity Research Analyst, Angel Broking.
Vijaya Diagnostic Center is a prominent diagnostic chain in South India. “The company has performed well over the years which is reflected in top & bottom line growth. On the upper band of 531, the asking P/E comes at around 64x which seems to be on higher side, also the issue is purely OFS and recent fiasco in primary markets have tumbled the sentiments of investors so it would be keen to watch for the subscription rush,” said Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares.
Ami Organics: The price band of the three-day share sale has been fixed at ₹603-610 per share. The public issue comprises fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of up to 6,059,600 shares by promoter and existing shareholders. The company will utilise IPO proceeds towards repayment of certain debt and funding working capital requirements.
Ami organics deal in different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) and materials for agrochemical and fine chemicals.
“The company has fixed the IPO price at price to earning of 35.5 times of FY2021 earning, which is in line with the peers. we believe that all the short-term positives have been priced in. The company has a good return ratio, return on capital employed 25.25% and return on net worth at 32.35%.We have a neutral outlook for Ami organics IPO,” Yash Gupta of Angel Broking said.
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