Speciality chemicals company Aether Industries Ltd’s initial public offering (IPO) had been subscribed 49 percent at the end of May 25, the second day of booking.
Investors bid for 45.68 lakh units against an IPO size of 93.56 lakh shares.
Retail investors had booked 67 percent of the portion set aside for them, while non-institutional investors had only subscribed to 16 percent of the 19.47 lakh shares allotted to them.
Qualified institutional buyers (QIB) sent in bids for 39 percent of the 27.48 lakh shares reserved for them. Employee portion was booked 93 percent.
The chemical company aims to raise Rs 808.04 crore through the IPO, which consists of a fresh issue of Rs 627 crore and an offer-for-sale of up to 2.82 million shares.
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.
Aether Industries is focused on producing advanced intermediates and speciality chemicals. It 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, up from Rs 48.25 crore in the previous year. As of December 2021, the firm had a 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.