Ami Organics Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
AMI-Organics-IPO

Ami Organics IPO: Key Details

  • Grey Market Premium (GMP) today: ₹135 – ₹150

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Ami Organics Limited, incorporated in 2004, is a research and development (“R&D”) driven manufacturer of specialty chemicals with varied end usage, focused towards the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ingredients (“APIs”) and New Chemical Entities (“NCE”) and key starting material for agrochemical and fine chemicals, especially from the recent acquisition of the business of Gujarat Organics Limited (“GOL”).

They are one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The Pharma Intermediates which they manufacture, find application in certain high-growth therapeutic areas including anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant, commanding significant market share both in India and globally.

Competitive Strengths

  • Strong and diversified product portfolio ably supported by strong R&D and process chemistry skills;
  • Extensive geographical presence and diversified customer base with long standing relationships;
  • High entry barriers in the chemicals manufacturing industry in which the Company operates;
  • Strong sales and marketing capabilities;
  • Experienced and Dedicated Management Team; and
  • Consistent financial performance.

Company Strategy

  • Diversification of product portfolio by strengthening R&D capabilities
  • Augmenting scale through organic and inorganic routes in the current geographic markets and expanding into new geographic markets
  • Continue to focus on cost efficiency and improving productivity while employing environmentally friendly processes
  • Diversification of business by focusing on organic and inorganic growth opportunities

Proceeds from fresh issue of Ami Organics IPO will be used to:

  • Repayment/prepayment of certain financial facilities availed by the Company;
  • Funding working capital requirements of the Company; and
  • General corporate purposes

Ami Organics IPO: Financials

201920202021
Revenue from Ops₹238.51 Cr₹239.64 Cr₹340.61 Cr
Profit before Excep*₹35.11 Cr₹34.75 Cr₹71.73 Cr
Profit after Tax23.29 Cr₹27.47 Cr₹54.00 Cr
EPS (Basic)7.408.7217.14
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS29.0920.7320.97
* Weighted Average for last 3 years

Ami Organics IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Ami Organics20.97
Highest (Vinati)75.51
Lowest (Neuland)31.60
Sector Average48.91

Ami Organics IPO Dashboard

Issue Details

TypeValue
Issue Size₹569.64 Cr
Fresh Issue₹200.00 Cr
Offer for Sale₹369.64 Cr
Face Value₹10/- per Equity Share
IPO Price₹603 – ₹610
Lot Size24 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open1/09/2021
Bid Close3/09/2021
Allotment Finalization8/09/2021
Initiation of Refunds9/09/2021
Credit of Shares13/09/2021
Listing Date14/09/2021

Lot Size and Price

LotsSharesAmount
124₹14,540
13312₹1,90,320

Promoter Holding

HoldingPercentage
Pre-Issue47.23 %
Post-Issue41.05 %

Ami Organics IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50% shares
NII15%– shares
RII (Retail)35%– shares
Total100%– shares

Ami Organics IPO: Risks

  • They are subject to strict quality requirements, regular inspections and audits, and the success and wide
    acceptability of products is largely dependent upon quality controls and standards.
  • They derive a significant portion of revenue from the sale of products in certain therapeutic areas and
    any reduction in demand for these products, could have an adverse effect on the business.
  • Their inability to meet obligations, including financial and other covenants under debt financing
    arrangements could adversely affect the business
  • They have in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders
  • Their operations are dependent on continuous R&D to develop and commercialize new products and any
    inability to identify and understand evolving industry trends could impact business

For complete internal and external risk factors, you can refer to the RHP of the company.

Ami Organics IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
Intensive Fiscal Services Private Limited
Ambit Private Limited

Phone: +91 22 4325 2183
Email: [email protected]

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