- Devesh Tiwari
Ami Organics IPO:
The IPO of specialty chemical maker Ami Organics is open today i.e. on September 1 and will close on September 3. Analysts have mixed opinions on whether to invest in its issue or not.
Surat’s Ami Organics is about to raise Rs 570 crore from its IPO. It has a fresh issue of Rs 200 crore and 6,059,600 equity shares worth Rs 370 crore will be sold in the offer for sale.
The price band for the IPO of Ami Organics is Rs 603-610. It has 28 shares in one lot. 50% of the issue is reserved for qualified institutional buyers. While 15% is reserved for Non-Institutional Investors (NIIs). While 35% is reserved for retail investors. The company will use the fresh issue for debt repayment and working requirements.
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Market experts believe that looking at the adjusted EPS of Rs 14.82 for the fiscal year 2021, the issue price looks reasonable. The company is going to be listed at 41.16 P/E and has a market cap of Rs 2,222.7 crores. Its P/E is at par with other chemical companies in the industry. Aarti Industries’ P/E is currently running at 54.20 and Hikal’s P/E is 46.13.
According to ET, Marwadi Shares and Finance has advised to subscribe to this IPO. The product portfolio of the company is strong and diversified. Along with this, the company’s R&D is very strong. It is at a better price than its rival companies, so one should invest in it.
Angel Broking has given neutral rating to this issue.
The company has raised Rs 100 crore in pre-IPO placement. In this, the company has raised a fund of Rs 100 crore by issuing 1,658,374 equity shares at Rs 603 per share.
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What’s going on GMP
The GMP issue of Ami Organics was running at Rs 125 a day before the opening. As of now, the GMP of the shares of Ami Organics is running at Rs 125. While the issue price is Rs 603-610. Accordingly, according to the upper price band, the listing of Ami Organics shares can be done at Rs 735 (610 + 125).