InvestorQ : Can you tell me about the Ami Organics IPO opening on 01 September?
vaishnavi mhatre made post

Can you tell me about the Ami Organics IPO opening on 01 September?

vidhya Laxmi answered.
9 months ago

Ami Organics is a specialty chemicals manufacturer based out of Gujarat. It has a plant located at Sachin and how now acquired two more plants located at Ankleshwar and Jhagadia, also in Gujarat. Its total manufacturing capacity after these two plant acquisitions stands at 6,060 MTPA of intermediate. Ami Organics specializes in pharma intermediates that go into pharmaceutical APIs manufactured by the pharmaceutical companies.

Ami Organics has priced its IPO in the price of band of Rs.603-610 per share. Investors bidding in the retail portion can make bids for a minimum of 24 equity shares and multiples of 24 thereafter. As you rightly said, the IPO will open on September 1 and close on September 3. The Rs.570 crore issue will consist of fresh fund raising of Rs.200 crore and offer for sale by early investors worth Rs.370 crore. Debt repayment is a key objective.

The company has already done a Rs.100 crore placement with marquee investors like Malabar Value Fund and IIFL Special Opportunities Fund at a price of Rs.603 per share. Ami Organics has a leadership position in most of the major pharma intermediates that it manufactures and has a well spread global client base. In terms of valuation, the company is priced reasonably at around 41 times earnings, much lower than peer group.