Aether Industries shares listed on the BSE and NSE (National Stock Exchange) right now at a premium, amid the bullish sentiment on Dalal Street. Shares of the specialty chemical substances producer started buying and selling on BSE at Rs 706.15 per share up 9.99% from the higher finish of IPO value band of Rs 610-642 per share. On NSE the shares have been buying and selling at Rs 704 apiece Aether Industries IPO was absolutely subscribed by buyers earlier final month with certified institutional patrons (QIB) main the bidding. On itemizing, Aether Industries had a market capitalization of Rs 8,790 crore.
The specialty chemical make got here with its Rs 808 crore IPO final month. Of this Rs 627 crore was a contemporary difficulty of fairness shares whereas the remaining Rs 181 crore was a suggestion on the market (OFS) by current shareholders of the corporate. Post difficulty, the promoter & promoter group shareholding will drop to 87.1% from 97%. Public shareholding within the firm will improve to 12.9% from 3% earlier.
Aether Industries IPO was subscribed a complete of 6.26 occasions by buyers. QIBs had bid for his or her portion 17.57 occasions whereas NII portion was bid for two.52 occasions. The retail investor portion of the general public difficulty was subscribed 1.14 occasions and workers of the agency subscribed their portion 1.06 occasions. Investors have been provided shares in a bid lot of 23 fairness shares of face worth Rs 10 every.
“Incorporated just 7 odd years back Aether Industries has become one of the fastest growing specialty chemical companies in India by growing its revenues at a CAGR of 49.5% between FY19 to FY21,” mentioned analysts at Anand Rathi of their IPO word. “At the upper end of the IPO price band as of Aether Industries is valued at 72.3 times on annualized basis of FY22 earnings which looks fairly valued considering the growth opportunities for speciality chemicals in pharma, agrochemicals & FMCG space, and improving prospects for contractual manufacturing & CRAMS under Make-in-India initiatives,” they added. Anand Rathi had a ‘Subscribe for long-term’ ranking on the problem.
On the opposite hand, Marwadi Financial Services took a extra cautious method, advising buyers to subscribe with warning. “Considering the TTM (Dec-21) EPS of Rs 8.50 on a post issue basis, the company is going to list at a P/E of 75.6x with a market cap of Rs 79,918 million whereas its peers namely Clean Science & Technology Ltd and Fine Organic Ltd. are trading at PE of 82.7x and 80.2x,” they mentioned. They added that the corporate has low and declining Operating Cash Flow to EBITDA ratio which is a motive to be cautious.
Source: www.financialexpress.com”