Ami Organics, specialty chemical substances maker, IPO will open for subscription next week on 1 September and close on 3 September. The challenge comprises a fresh challenge of equity shares worth Rs 200 crore and an supply-for-sale (OFS) of up to 60.59 lakh equity shares, constituting up to 7 lakh shares by Parul Chetankumar Vaghasia, up to 15 lakh equity shares by Girishkumar Limbabhai Chovatia, up to 30.50 lakh shares by Kiranben Girishbhai Chovatia, up to 1.74 lakh shares by Arun Jayantkumar Panya, amongst other folks.
Ami Organics, in consultation with book-operating lead managers, has undertaken a pre-IPO placement of equity shares worth Rs one hundred crore. The size of fresh challenge has been decreased by Rs one hundred crore. The business in its draft red herring prospectus had talked about the fresh challenge of shares worth Rs 300 crore. This is the Ami Organics’ second try to go public. In 2018, Ami Organics had filed preliminary papers with SEBI and received the capital markets regulator’s approval to launch the initial public supplying. However, it did not float the IPO.
Intensive Fiscal Services Pvt Ltd, Ambit Pvt Ltd and Axis Capital Ltd are the book operating lead managers to the challenge. Link Intime Private Ltd is the registrar to the challenge. Upon prosperous listing, Ami Organics will join the likes of Aarti Industries, Hikal Ltd, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd. The business peer group P/E ratio stands at 48.91x and the weighted typical return on net worth is 29.09 per cent.
Ami Organics has planned to utilise the net proceeds and the proceeds from the pre-IPO placement towards repayment of specific indebtedness availed by the business worth Rs 140 crore, funding working capital needs of the business worth Rs 90 crore, and for basic corporate purposes. The business derives a considerable portion of its income from the sale of pharmaceutical intermediates employed in active pharmaceutical components (API), which mostly comprises the sale of solutions in the therapeutic places of anti-psychotic, anti-retroviral, anti-cancer, anti-depressant, anti-Parkinson’s, anti-inflammatory and anticoagulant.
Recently, Ami Organics has completed the acquisition of two extra manufacturing plants operated by Gujarat Organics Ltd (GOL) in line with its inorganic development approach of foraying additional into the specialty chemical substances sector. Specifically, subsequent to the acquisition, it has acquired the preservatives (parabens and parabens formulations which have finish usage in cosmetics, animal meals and private care industries) and specialty chemical substances small business of GOL (with finish usage in inter alia the cosmetics, dyes and agrochemicals industries).