Aether Industries, a specialty chemicals manufacturer, is open for tender today. The Aether Industries IPO subscription will remain open until May 26, 2022. The chemical company aims to increase Rs 808.04 crore from its public offer, of which Rs 627 crore is expected from new issues while Rs 181.04 crore is expected to come through the offer for sale (OFS) trajectory. Proceeds from the new issuance will be used to fund the capital expenditure requirements for the proposed greenfield project in Surat, Gujarat, the payment of debts and the financing of the working capital requirements.
Aether IPO: Subscription Status
According to the Aether IPO subscription status, after day one of bidding, the public issue has been subscribed 0.33 times, while the retail portion has been subscribed 0.54 times.
Aether IPO price band has been set at Rs 610 to Rs 642 per share share.
Aether IPO: GMP Today
Shares of Aether are available today at a premium of Rs 10 in the gray market. According to market observers, Aether IPO GMP today is Rs 10, which is Rs 6 higher than yesterday’s gray market premium (GMP) of Rs 4.
Aether IPO: Financials
In 9 months of the 2021-22 fiscal year, Aether Industries has made a total turnover of Rs 449.3 crore while the PAT (profit after tax) was Rs 82.9 crore during this period.
Angel One’s Amarjeet S Maurya said in terms of valuations, the post-issue TTM P/E comes in at 75.6x (at the top of the issue price band), which is reasonable given the historic top-line and bottom-line CAGR of 50 percent and 75 percent respectively over FY19-21.
“It has a diversified customer base, a strong financial track record and a higher ROE. Given all the positive factors, we believe that this valuation is at a reasonable level. That’s why we recommend a subscription review on the matter,” Maurya said.
Aether IPO: Should You Subscribe?
Astha Jain, Senior Research Analyst at Hem Securities, gave a tender tag to Aether IPO, saying: “The company is launching the issuance at a price range of 610-642 per share at a p/e multiple of 72x on a 9-month PAT basis. Company with its differentiated portfolio of market-leading products has focused on R&D to leverage its core competencies of chemistry and technology.The company has long-standing relationships with a diversified customer base and synergistic business models focused on large-scale manufacturing, CRAMS and contract manufacturing. the company has shown strong and consistent financial performance. A company with its experienced promoters and senior management with extensive domain knowledge is looking for a decent way to deploy the funds, so we recommend that you subscribe to this issue.”
Aether Industries is focused on producing advanced intermediates and specialty chemicals with complex and differentiated chemistry and technology. The company’s products find application in various industries such as pharmaceuticals, agrochemicals, specialty, electronic chemicals, materials science, high-end photography, etc.
The expert opinions and investment tips in this News18.com report are their own and not the website’s or its management. Users are advised to contact certified experts before making any investment decisions.
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