The initial public offering (IPO) of specialty chemicals company Ather Industries will open for public subscription today and will end on May 26. The firm has fixed its price band. 610-642 per share for its issue. Ather Industries ahead of IPO 240 crores from anchor investors.
The company has cut the size of the fresh issue of equity shares from 627 crore 757 crore plan pre planned post postIPO appointment. In addition to the fresh issue, there will be an offer for sale (OFS) of 28.2 lakh equity shares by the promoter.
Ather Industries Ordering Share Premium (GMP) According to market observers, 4 in the gray market today. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on June 3, 2022.
“At a higher price band of Rs. 642, Ather is seeking an EV/sales multiplier of 13.1x, which is in line with the equivalent average of 15.2x. Its dominant position in select specialty chemicals and end-use applications give growth prospects. Keeping this in mind, we feel that the company has an encouraging outlook. However, the increased valuations are a matter of concern. We thus “subscribe with caution” to the issue,” said brokerage Choice Broking in a note. provide ratings.
The proceeds from the fresh issuance will be used to meet capital expenditure requirements, working capital requirements and pay off debt for the proposed new project at Surat, Gujarat.
“As of the timings reported at RHP, the company has registered consistent growth in both top and bottom line. The company had room to price it a bit lower but chose otherwise. Hence, on the valuation front, there is very little room left for investors. Those who have medium to long term tenure can subscribe to the public issue once it opens,” said Avinash Gorakshakar, Head of Research, Profitmart Securities, Ather Industries IPO.
Ather Industries is a specialized chemicals manufacturer in India focused on the production of advanced intermediate and specialty chemicals incorporating complex and differentiated chemistry and technology core competencies. As of March 31, 2022, the company’s product portfolio comprises more than 25 products. The company’s operating revenue increased 450 crore in FY 2011, from 302 crore in FY20, while net profit climbed 71 crore in FY21.