Ami Organics IPO: The IPO of specialty chemical maker Amy Organics will open next week on September 1. This IPO will be open for subscription till September 3. Under this issue, new shares worth Rs 200 crore will be issued. Apart from this, 60.59 lakh equity shares will be issued under Offer for Sale (OFS). The company has reduced the size of the IPO by Rs 100 crore. This is not the first time the company is trying to bring an IPO. Earlier, Amy Organics had submitted papers with SEBI in 2018 and SEBI had also approved. However, the company did not take out the IPO.
Amy Organics will use the funds raised through the IPO and pre-IPO to repay the debt of Rs 140 crore. Apart from this, Rs 90 crore will be used to meet the working capital requirements and the remaining capital will be used for general corporate purposes.
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100 crore cut in IPO size
Amy Organics, on the advice of the Book Running Lead Managers, has done a pre-IPO placement of equity shares worth Rs 100 crore. In such a situation, the size of the IPO has come down by Rs 100 crore. Earlier, the company had talked about issuing shares worth Rs 300 crore in the draft Red Herring Prospectus (DRHP). The Book Running Lead Managers of the issue are Intensive Fiscal Services Pvt Ltd, Ambit Pvt Ltd and Axis Capital Ltd. The registrar of the issue is Link Intime Private Limited. Post listing, the company will join the league of Aarti Industries, Hikal Ltd., Valiant Organics, Vinati Organics, Newland Organics and Atul Ltd. This industry peer group has a P/E ratio of 48.91x and a weighted average return on net worth of 29.09 per cent.
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These are the sources of revenue for Ami Organics
Most of the company’s revenue comes from the sale of pharma intermediates used in Active Pharma Ingredients (APIs). The company sells pharma intermediates related to anti-psychotic, anti-retroviral, anti-cancer, anti-depressant, anti-Perkinson, anti-inflammatory and anti-coagulant. Recently, Amy Organics has acquired two manufacturing plants of Gujarat Organics in line with the company’s inorganic growth strategy in the specialty chemicals sector. Apart from this, the company has also acquired the preservatives and specialty business of Gujarat Organics.
(Article: Surbhi Jain)