Ami Organic, a speciality chemicals firm will open its Rs. 570 crore IPO issue on Wednesday (September 1, 2021). In an exclusive interview, the company's chief managing director said partly the proceeds from the IPO will be used to pay off the debt amounting to Rs. 140 crore.
The IPO is a mix of both fresh share issuance as well as an Offer for sale by company's promoters. The price band for the issuance is Rs. 603-610 per share.
Within a few months time, 3 specialty chemicals company, including the likes of Clean Science and Technology, Tatva Chintan Pharma Chem and Chemplast Sanmar hit the primary market. Nonetheless, Chemplast Sanmar failed to make a strong listing on the exchanges, unlike the two others.
Ami Organics is a R&D focused company engaged in manufacturing of specialty chemicals. The company manufactures varied types of advanced pharmaceutical intermediates and active pharmaceutical ingredients (API) for new chemical entities, and material for agrochemicals and fine chemicals.
Other aspects, the company is working to reduce its dependence on countries from where it is procuring raw material, say for instance from China.
Should you subscribe to Ami Organics IPO?
Ahead of the opening of the IPO issue, the GMP or grey market premium of the stock has soared immensely that as of signals good listing gains for the scrip as and when it hits or debuts on the stock exchanges. As per the markets who track the scrip in unlisted market see the stock trading at a premium of Rs. 60 as on August 30, 2021.
The prime consideration other than the grey market premium is the company has been posting robust financials and its revenue as well as profit has surged between 2019-2021.
Angel Broking views on the IPO of Ami Organics
Yash Gupta, Equity Research Analyst, Angel Broking Ltd, said, "Ami organics deal in different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) and materials for agrochemical and fine chemicals. Ami Organics has 3 manufacturing facility with aggregate installed capacity of 6060 Mtpa. The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. The company sells its product in India as well as in the international market. Ami organic reported revenue growth of 41% in FY2021 at ₹342 crores and profit after tax growth of 96% in FY2021 at ₹54 crores. We have a neutral outlook for Ami organics IPO."
This chemical manufacturing firm was born in 2004. The company is well known for holding multiple types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) in its diversified product portfolio. Apart from this, Ami Organics is known for exporting medicines to various countries like USA, China, Israel, Japan, Latin America, etc.