Shares of Ather Industries made a positive stock market start with stock listings on Friday 704 each on NSE, a premium of over 9% over its IPO issue price 642 per share. Ather Industries shares start trading on BSE 706, later reached upper circuit level on its first day.
Initial Public Offering (IPO) of specialty chemicals company Ather Industries It was subscribed 6.26 times on the last day of subscription, helped by strong interest from institutional buyers.
The initial share sale had a new issue of up to 627 crore and offer for sale (OFS) of 28,20,000 equity shares. The offer, which was open for public subscription from May 24-26, 2022, had a price range of 610-642 per share. Ather Industries up a bit 240 crores from anchor investors before its public issue.
The proceeds from the fresh issue will be used to fund capital expenditure requirements, working capital requirements and pay off debt for a proposed new project in Surat, Gujarat.
Ather Industries is a special chemicals Manufacturer in India, focused on the production of specialty chemicals incorporating advanced, intermediate and complex and differentiated chemistry and technology core competencies.
It started with a research and development (R&D) unit in 2013 and started commercial production in 2017. It caters to the pharmaceutical, agricultural chemicals, materials science, electronic chemicals, high performance photography and oil and gas industry sectors.
The company’s operating revenue increased 450 crore in FY 2011, as compared to 302 crore in FY20, while its net profit climbed 71 crore in FY21, from 40 crore in FY20.
“Given our dominant position in select specialty chemicals and the growth potential from end use applications, we think the company’s outlook is encouraging. However, a detailed valuation remains a concern,” brokerage Choice Broking had said in the IPO note.