Specialty chemical maker Aether Industries is set to launch its first public offering (IPO) next week, with the public offering remaining open for subscription between May 24 and May 26. The size of the IPO is about Rs 808 crore and the price range is set at Rs 610-642 per share. Here are key facts about the company and its IPO that investors should know before applying for the offering.
Aether Industries IPO: Date and Size
The Aether Industries IPO will be open for public subscriptions between May 24 and May 26. The share of the anchor investors can be bid on 23 May. The company plans to raise Rs 808.04 crore from the public offer. Of this, Rs 627 crore will be raised through new issuance while the remaining Rs 181.04 crore is expected to be raised through offer for sale (OFS). The tentative date for the announcement of the share allotment is May 31. The likely date for the listing of the shares is June 3.
Aether Industries IPO: Lot Size
An investor can bid on a minimum of one lot and a maximum of 13 lots. A lot will consist of 23 shares of Aether Industries. In terms of the value of the rupee, an investor can bid for a minimum amount of Rs 14,766 for one lot while the maximum bid can be made for Rs 1,91,958 for 13 lots.
Aether Industries IPO: Quotas
The IPO will have a 35 percent reservation for retail investors, while qualified institutional buyers (QIBs) can participate in 50 percent of the total issuance size. Non-institutional investors can participate in the remaining 15 percent of the IPO size.
Aether Industries IPO: GMP
According to market observers, Aether Industries shares have made their gray market debut. They said Aether Industries shares were available Saturday at a premium of Rs 20 (above the upper band of Rs 642) in the gray market. It means the shares are trading in the gray market at Rs 662 each. It indicates that the stock price of the company’s shares is expected to be above the issue price. The premium fluctuates based on market sentiment.
About Aether Industries
Aether Industries is a specialty chemicals manufacturer in India focused on the production of advanced intermediates and specialty chemicals with complex and differentiated core chemistry and technology competencies. “Our company started in 2013 with the vision to create a niche in the global chemical industry with a creative approach to chemistry, technology and systems that would lead to sustainable growth,” according to the red-herring prospectus (RHP).
It said it is one of the fastest growing specialty chemical companies in India, with a CAGR (compound annual growth rate) of nearly 49.5 percent between fiscal years 2019 and 2021.
“From CY 2020 to CY2025, the global chemicals market is expected to grow at a CAGR of 6.2 percent and the Indian specialty chemicals market at a CAGR of 11.2 percent, according to Frost & Sullivan. The following table shows the size in CY2020 of the global chemical market, the global specialty chemicals market and the Indian specialty chemicals market and the projected growth in these markets for CY 2025,” the RHP said.
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