Aether Industries, the specialty chemical manufacturer, closed at the day's high with nearly 21 percent gains despite a sell-off in the equity market on its debut on June 3.
The stock was locked in a 20.62 percent upper circuit for the major part of the session to close at Rs 774.40 on the National Stock Exchange. After opening at Rs 701 against the issue price of Rs 642 per share, the stock was immediately locked in the upper circuit.
On the BSE, the stock closed at Rs 776.75, up 20.99 percent over the issue price.
In terms of volumes, Aether traded with 5.7 lakh shares on the BSE, and 39.32 lakh shares on the NSE.
The specialty chemical company has mobilised Rs 808 crore through its maiden public issue and the price range was Rs 610-642 per share.
Also read - Aether Industries locked in 20% upper circuit on debut. What should you do now?
"The company's good listing can be attributed to a recovery in market sentiments, outstanding growth prospects of the company, and a good response from the investors," Santosh Meena, Head of Research at Swastika Investmart said.
The company is one of the fastest-growing specialty chemical companies in India, having a high focus on R&D, relying on differentiated chemistry & technological core competencies, and a robust product selection process.
The Indian chemical industry is witnessing a structural change due to the shift of manufacturing activities from China to India and the focus on green chemistry.
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"The issue was priced at a P/E (price-to-earnings) of 72.30 based on annualized FY22 numbers. However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects," the analyst said.
New investors can buy for the long term and existing investors are recommended to stay invested in the company, said Santosh Meena.
Disclaimer: The views and investment tips expressed by investment 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.
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