Specialty chemicals company Ami Organics made a strong debut on the bourses, listing at a 48 percent premium against its IPO price of Rs 610 a share on September 14.
On the BSE, the stock debuted at Rs 902, up 47.87 percent, while it opened 49.18 percent higher at Rs 910 on the National Stock Exchange.
The listing was better than analysts' expectations following a strong response the public offer. The initial public offering was subscribed 64.54 times during September 1-3, 2021, as investors bid for 42.22 crore shares against the offer size of 65.42 lakh shares.
The portion reserved for qualified institutional buyers and non-institutional investors was subscribed 154.81 times and 86.64 times, respectively. Retail portion was subscribed 13.36 times.
The company mopped up Rs 570 crore through its public offer that comprised a fresh issue of Rs 200 crore and an offer for sale of Rs 370 crore by shareholders.
The company plans to use fresh issue and pre-IPO placement funds for repaying debts and meeting working capital requirements.
Ami Organics makes specialty chemicals with varied end usage, focussed on the development and manufacturing of pharma intermediates for regulated and generic active pharmaceutical ingredients, new chemical entities and key starting material for agrochemical and fine chemicals.
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A majority of brokerage houses were in favour of subscribing the public issue. Positive on the long-term prospects of the company, Anand Rathi recommended a “subscribe” rating to the IPO. "The company has shown consistent financial performance with sales growth at CAGR of 19.5 percent and restated profit after tax growth at CAGR of 52.3 percent between the FY19 and FY21," it said.
Ami Organics earned more than half of its revenue from overseas markets with exports contributing 51.5 percent to its revenues in FY21.
The pharma intermediates manufactured by the company are used in anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, antidepressant and anti-coagulant drugs. The company supplies to more than 25 countries, and has over 150 customers in India.
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