Ami Organics shares surged over 5 percent to Rs 1,380 per share on June 19 after it launched a QIP (qualified institutional placement) to raise up to Rs 500 crore. The company is offering shares in the QIP at a floor price of Rs 1,228.71 per equity share, it said in a stock exchange filing.
The stock has gained over 6 percent in the last one month, beating Nifty's 4.5 percent return in the same period.
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Ami Organics' QIP committee is due to meet again on June 21 to consider and approve the final issue price. "The company may at its discretion offer a discount of not more than 5 percent on the floor price for the issue," it said in the filing. The issue price will be determined by the company in consultation with the book running lead manager, it added.
According to sources cited by CNBC-TV18, Ami Organics would dilute 8.6 percent of pre-issued equity capital, wherein the funds would be used to repay earlier debts, capex for captive solar project, and other general corporate purposes.
In the March-ended quarter (Q4FY24), Ami Organics consolidated net profit declined by 4.2 percent year-on-year (YoY) to Rs 260 crore, but revenue from operations jumped by 20.7 percent YoY to Rs 2,250 crore.
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Following its Q4 results, analysts at KRChoksey shared an 'accumulate' rating on Ami Organics with a target price of Rs 1,294 apiece.
"We believe commercialisation of CDMO contracts, ramp up in production of electrolyte additives, and improved utilisation will contribute to future profitable growth. We expect H1FY25E will have modest growth and H2FY25E will have higher growth as future projects are expected to get commercialised at that time," the brokerage firm added.
Surat-based Ami Organics is one of the largest research driven manufacturers of pharmaceuticals intermediates, excipients, specialty and fine chemicals.
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