Aether Industries files draft papers with SEBI to raise funds through IPO

Surat-based specialty chemical manufacturer Aether Industries Ltd has filed the draft red herring prospectus with the Securities Exchange Board of India to raise funds through a public issue.

The IPO comprises a fresh issue of Rs 757 crore and an offer-for-sale of up to 2.57 million shares by its existing promoter Purnima Ashwin Desai. HDFC Bank Ltd and Kotak Mahindra Capital are the book running lead managers to the issue.

Out of the proceeds from the issue, Rs 190 crore will be used for funding capital expenditure requirements for its proposed greenfield project, while around Rs 211.40 crore will be spent on repayment of debt and Rs 165 crore for funding working capital requirements.

As of September 2021, the company’s total debt stood at Rs 223.73 crore.

The company started its operations in 2013 and it is focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology as core competencies.

Aether has two sites in Surat. One manufacturing facility is sprawled over approximately 3,500 square metres that includes its R&D unit, analytical sciences laboratories, pilot plant, CRAMS facility and hydrogenation facility. The second manufacturing facility spans approximately 10,500 square metres and acts as a large-scale manufacturing facility with an installed capacity of 6,096 MT per annum.

For the six months to September 2021, the total income stood at Rs 295.65 crore as against Rs 227.71 crore a year ago. Its net profit increased to Rs 57.51 crore from Rs 33.01 crore during the same period, while EBITDA margin reached 30.83 percent from 23.10 percent.