The public subscription period for Aether Industries’ initial public offering (IPO) begins today and will end on May 26. The company has set a price range of ₹610-642 per share for its offering. Aether Industries raises ₹240 crore from anchor investors ahead of its IPO.
Following the pre-IPO placement, the business has reduced the amount of the new equity share offering to ₹627 crore from the previously scheduled 757 crore. Aside from the new issuance, the promoter would make an offer-for-sale (OFS) of up to ₹28.2 lakh equity shares.
Aether Industries IPO GMP Today
According to market experts, Aether Industries shares are now demanding a premium (GMP) of ₹4 on the grey market. On June 3, 2022, the company’s shares are planned to be listed on the BSE and NSE stock markets.
Aether Industries IPO Date
The public issue will be available for subscription on May 24, 2022, and will stay open until May 26, 2022.
Aether Industries IPO Price Band
The chemical business has set a price band of 610 to 642 per share for its first public offering.
Aether Industries IPO Review
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the Aether Industries IPO, saying, “According to RHP’s reports, the company’s top and bottom lines have been steadily increasing. The corporation could have kept their pricing a bit lower, but it opted not to. As a result, there is very little room for investors on the value front. Those with a medium to long time perspective may subscribe to the public issue when it becomes available.”
Should one subscribe to the public issue or not? GCL Securities Vice Chairman Ravi Singhal said, “The price of the public issuance is little higher. The company’s fundamentals, on the other hand, are fairly robust. Those with a long-term outlook may subscribe to the public issue.”
Aether Industries IPO Financials
Aether Industries reported total sales of 449.3 crore in the first nine months of FY22, with a profit after tax of 82.9 crore. Its entire sales was 203.2 crore in FY19, with a profit after tax of 23.3 crore. Similarly, its total revenue/PAT in FY20 was 303.7 crore / 39.9 crore, while its total revenue/PAT in FY21 was 453.7 crore / 71.1 crore.
Aether Industries IPO Objectives
The chemical business has said that the funds received from its public offering would be used to repay debt, support capital expenditures and working capital needs, as well as other general corporate needs.
Other Aether Industries IPO Details
- Aether Industries IPO lot size: Bidders will be allowed to apply in lots, with each lot containing 23 Aether Industries shares.
- Aether Industries IPO allotment date: Aether Industries Limited’s anticipated share allotment date is May 31, 2022.
- Aether Industries IPO listing: The public offering will be listed on the BSE and NSE, with a projected share listing date of June 3, 2022.
Aether Industries IPO Opens Today. Should You Subscribe?
“Aether is requesting an EV/Sales multiple of 13.1x at the highest price range of Rs. 642, which is in line with the peer average of 15.2x. We believe the business has a positive outlook due to its dominating position in certain speciality chemicals and growth potential from end-use applications. A stretched value, on the other hand, is a problem. As a result, we rate the issue as “Subscribe with Caution,” according to brokerage Choice Broking.
The proceeds from the new offering will be used to cover capital expenditures for a planned new project in Surat, Gujarat, as well as working capital and debt repayment.
“According to RHP, the company’s top and bottom lines have been growing steadily for some years. The corporation could have kept their pricing a bit lower, but it opted not to. As a result, there is very little room for investors on the value front. Aether Industries IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities, stated, “Those with a medium to long term time horizon may subscribe to the public issue once it opens.”
Aether Industries is an Indian specialty chemicals company that specialises in advanced intermediates and specialty chemicals that need complicated and distinct chemistry and technical core skills. The company’s product range includes approximately 25 goods as of March 31, 2022. Operating revenue increased to 450 crore in FY21 from 302 crore in FY20, while net profit increased to 71 crore.