Ami Organics IPO: Today is September 3, the last day to subscribe to the Rs 570 crore IPO of Amy Organics. It has been oversubscribed 5.7 times so far i.e. bids for 3.7 crore equity shares have been received for 65.42 lakh shares. Talking about the primary market, this week the premium has slipped from Rs 155 to Rs 95 against the issue price in its gray market. Its price band is Rs 603-610 per share. On Friday, September 3, its shares are at a premium of 15.57 percent i.e. Rs 705 against the IPO price of Rs 610 in the gray market.
Amy Organics is a leading manufacturer of Pharma Intermediates used in Active Pharma Ingredients (APIs). The domestic customers of Amy Organics are Laurus Labs, Cadila Healthcare and Cipla. After debuting in the stock market, it will join the league of Aarti Industries, Hikal, Valiant Organics, Vinati Organics, Newland Organics and Atul. According to analysts, Amy Organics’ IPO pricing is looking moderate due to its superior product portfolio and strong market share.
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Ami Organics IPO Details
- This IPO will be open for subscription from 1-3 September.
- Under this IPO of Rs 569.64 crore, the price band for shares with face value of Rs 10 has been kept at Rs 603-610 per share.
- The lot size of 24 shares has been fixed for the issue i.e. according to the upper price of the price band, investors will have to invest at least Rs 14640.
- Allotment of shares can be done on September 8 and its listing in the market can be done on September 14.
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This is the opinion of experts regarding investment
- According to Abhay Doshi, Founder, UnlistedArena.com, the chemical sector has proved to be an outperformer, due to which the investor’s attitude can look positive towards it. According to Doshi, do not take the decision of investing in IPO on the basis of gray market premium. The gray market premium could not indicate anything specific regarding the last few IPO listings.
- According to Pavitra Shetty, Co-Founder and Trainer, Tips2Trade, Amy Organics fundamentals look strong with lower PE but technically it can see a correction anytime. Investors need to be careful and wait for the listing. If its shares are allotted to you, then you should wait in the coming few months to get better returns.
- According to Yash Gupta, Equity Research Analyst, Angel Broking, based on FY21 financial results, the IPO of Amy Organics will be valued at 35.6x PE (Price to Earning Ratio) and 25.7x EV/EBITDA in terms of upper price of the price band. Has gone. This is more than the peer group. According to Gupta, its Amy Organics has a 70-90 per cent share in the core API market, which seems to limit the company’s growth in the future. Angel Broking has given a neutral rating to this IPO, calling it expensive.
- According to Rajesh Singla, Founder and CEO of Planify Consultancy, a pre-IPO consulting firm, Amy Organics primarily sells antidepressants, which are in high demand. Apart from this, due to the lifestyle of the people, its market will be bigger in the next decade. Talking about valuation, investors can invest money in it.
(Article: Surbhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)