Speciality chemicals company Aether Industries Ltd’s initial public offering (IPO) opened today for subscription.
The IPO consists of a fresh issue of Rs 627 crore and an offer-for-sale of up to 2.82 million shares by its shareholders and promoters. Of the proceeds, Rs 190 crore will be used to fund greenfield projects in Surat, Rs 138 crore to pay debts and Rs 165 crore for funding working capital requirements, the company has said.
HDFC Bank and Kotak Mahindra Capital are the lead managers to the issue.
Shares are expected to be credited on June 2 and the firm may list on exchanges the next day.
The chemical company aims to raise Rs 808.04 crore from its public offer. Out of Rs 808.04 crore, company aims to raise Rs 627 crore through fresh issues.
Aether Industries saw its total subscription of 33 percent on the first day of booking. Investors have bid for 30.41 lakh shares against an IPO size of 93.56 lakh shares.
Retail investors booked 42 percent of the portion set aside for them while non-institutional investors booked 5 percent or 1.01 lakh shares allotted to them against quota of 19.47 lakh shares.
Qualified institutional buyers (QIB) have subscribed 36 percent of the 27.48 lakh shares allotted to them. Employee reserved portion was booked 54 percent against 1.17 lakh shares reserved for them.
Aether Industries is focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. The firm has two manufacturing facilities in Gujarat.
For the nine months ended December 31, 2021, the firm's revenue stood at Rs 442.54 crore against Rs 334.09 crore a year ago. Net profit for the period was Rs 82.91 crore versus Rs 48.25 crore in the previous year. As of December 2021, the firm had a total debt of Rs 234.73 crore.Disclaimer: The views and investment tips of experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.