Aether Industries IPO Day 3: Aether Industries IPO subscription ends today. This means that today is their last chance for investors looking to buy the public offer. The company is selling its shares in the range of Rs 610-642 each to raise Rs 808 crore through the primary route. Aether has reserved 50 percent of its net offerings for qualified institutional buyers (QIBs), while non-institutional buyers (NIIs) will receive a 15 percent allocation. The remaining 35 percent shares will be given to the private bidders. Founded in 2013, Aether Industries is a specialty chemicals manufacturer and only plays in some categories. The company is the largest manufacturer of 4MEP, T2E, NODG and HEEP products in the world by volume.
Aether Industries IPO: Subscription Status
After day two of bidding, the public issue worth Rs 808.04 crore has been subscribed 0.49 times while the retail section has been subscribed 0.67 times. According to data from BSE, investors bid for 45,68,996 shares or 49 percent, compared to the 93,56,193 shares offered at the close of bidding on the second day of subscription. The quota for private bidders was subscribed by 67 percent, while the allocation staff took 93 percent of the bids. The allotment for HNIs was only subscribed at 16 percent, while the QIB portion took 39 percent of the bids.
Aether Industries IPO: GMP Today
According to market observers, shares of Aether Industries are available today at a premium of Rs 3 in the gray market, which is Rs 7 lower than yesterday’s gray evening premium of Rs 10. They said negative sentiment in the secondary market is taking its toll of gray market sentiment regarding the Aether IPO. However, market experts suggest to investors that GMP is unofficial data, which is not regulated. So those who follow GMP are advised to also go through the financial records of the company as the balance sheet of the company will give a better idea of the fundamentals of the company.
Aether Industries IPO: target
The net proceeds of the new issuance will be used to fund capital expenditure requirements for the proposed greenfield project, prepayment or repayment of all or a portion of certain outstanding loans, working capital funding requirements and general corporate purposes, according to the information in the Red Herring Prospectus. (RHP).
Aether Industries IPO: Financials
IIFL Research said in its IPO note: “At the top price bracket of Rs 642, Aether Industries Limited is claiming a PE multiple of ~87.2X based on its FY21 revenue, while the company’s price to sales ratio is 17.7X of FY21 revenue The industry average PE multiple is 83.35X of FY21 Given the differentiated portfolio of market-leading products, long-standing relationships with a diversified customer base, plans to expand the product portfolio and expand the distribution network in the international market expand, we recommend signing up for the matter with a long-term perspective.”
Aether Industries IPO: Should You Buy?
The majority of brokers are positive about the matter and have recommended signing up for it due to the strong financial, niche products and growth prospects throughout the year. The company, with its differentiated portfolio of market-leading products, has focused on R&D to leverage its core competencies in chemistry and technology, Hem Securities said, with an endorsement rating on the matter.
“The company has long-standing relationships with a diversified customer base and synergistic business models focused on large-scale manufacturing, CRAMS and contract manufacturing,” it added. “Financially, the company has shown strong and consistent financial performance.”
Reliance Securities noted in its report, “On an annualized basis from FY22, the IPO is valued at 48.7x EV/EBITDA, 13.9x EV/sales and 72x P/E. The company focuses on R&D to leverage the core competencies of chemistry and technology. It has an experienced and talented promoter group with a strong educational background and work experience at global giants such as Dow Chemical. The company caters to a diversified customer base in India and abroad. Due to the strong and ongoing financial record, differentiated portfolio of market-leading products, global reach, strong technology-focused product portfolio and focus on QEHS (Quality, Environment, Health and Safety), we recommend SUBSCRIBE to the issue.”
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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