Choice Equity Broking IPO report on Ami Organics
Specialty chemicals manufacturer Ami Organics Ltd. (AOL), is coming up with an IPO to raise Rs. 570cr, which opens on 1st Sept. and closes on 3rd Sept. 2021. The price band is Rs. 603 - 610 per share. • The issue is a combination of fresh and OFS. The company will not receive any proceeds from the OFS part of the issue. Of the net proceeds from the fresh issue, Rs. 140cr will be used to prepay or repayment of the debt and another Rs. 90cr will be utilized to fund the working capital requirements of the company. • The company in consultation of the BRLMs have undertaken a preIPO placement aggregating to Rs. 100cr. It allotted 0.17cr shares at a price of Rs. 603 per share.
Valuation and Outlook
Considering the dominant market positioning of the company in the manufacturing of pharma intermediates for certain high-growth high-margin therapeutic areas, business growth from the specialty chemicals and lower debt levels post-IPO, we assign a “SUBSCRIBE” rating for the issue.
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