The initial public offering of Ami Organics, the specialty chemical company, was subscribed 1.89 times on September 1, the first day of bidding, supported by retail investors.
Investors have put in bids for 1.24 crore equity shares against the IPO size of 65.42 lakh equity shares, the subscription data available on the exchanges showed.
Retail investors were again out in full force, as the portion set aside for them was subscribed 2.82 times. The part set aside for non-institutional investors saw a 41 percent subscription, while qualified institutional buyers have put in bids 1.39 times their reserved portion.
Ami Organics is looking to mop up Rs 570 crore through its public issue, of which it raised Rs 171 crore through anchor book on August 31, at the upper price band of Rs 610 a share.
The offer comprises a fresh issue of Rs 200 crore and an offer for sale of Rs 370 crore by shareholders. The fresh issue proceeds will be used for repaying debts and meeting working capital requirements.
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Incorporated in 2004, Ami Organics deals in different types of advanced pharmaceutical intermediates, active pharmaceutical ingredients (API) and materials for agrochemical and fine chemicals.
It has three manufacturing facilities in Gujarat, with an aggregate installed capacity of 6,060 million tonnes per annum.
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"Based on FY21 numbers, the IPO is priced at a price to earnings of 35.6 times and EV/EBITDA of 25.7 times at the upper price band of the IPO, which is on the higher side, compared to the listed peer group. The company already has a higher market share of 70-90 percent in key APIs which will limit growth in the near future," said Yash Gupta, Equity Research Analyst at Angel Broking.
Given the expensive valuation, Angel Broking assigned a neutral recommendation to the IPO.
Ami Organics shares were available at a price of Rs 710-740 in the grey market, a 16.4-21.3 percent premium over the issue price of Rs 610, the IPO Watch and IPO Central data showed.