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Ami Organics IPO is all set to open on 1 September: Know About it Here!

05 August 20226 mins read by Angel One
Ami Organics IPO is all set to open on 1 September: Know About it Here!
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Ami Organics’ initial public offer will be opened for subscription on 1 September 2021. The said IPO would continue till 3 September. As per the DRHP, this public offer will comprise a new share issue worth Rs. 200 crores and an OFS of nearly 6.06 million shares by its shareholders and promoters.

Here’s more on this recent development.

Ami Organics IPO Timeline

As per IPO market reports, Ami Organics will follow a timeline that is similar to Vijaya Diagnostics. In other words, this is a tentative timeline of how this upcoming public offer will be carried out:

  • Opening date: 1 September
  • Closing date: 3 September
  • Basis of share allotment: 8 September
  • Refund initiation: 9 September
  • Credit of shares to investors’ DEMAT account: 13 September
  • IPO listing: 14 September

Ami Organics has set its IPO price band at Rs. 603 – Rs. 610 apiece. This company’s shares will be listed on both NSE and BSE. Also, the face value of its equity shares will be set at Rs. 10 apiece. The market lot of this upcoming IPO is set at 24 shares and so is its minimum order quantity. Note that, a retail investor can apply for a maximum of 13 lots, i.e., 312 shares amounting to Rs. 190,320 at its cut off price.

A Quick Look at the Composition of Ami Organics IPO Issue

Here’s a break up of Ami Organics IPO’s offer for sale (OFS):

  • Up to 7 lakh equity shares: Parul Chetankumar Vaghasia
  • A maximum of 1.5 lakh equity shares: Girishkumar Limbabhai Chovatia
  • Around 1.74 lakh equity shares: Aruna Jayantkumar Pandya

Other than this, a maximum of 3.05 million shares will be offered by Kiranben Girishbhai Chovatia.

Hence, this company is likely to raise nearly Rs. 570 crores at its upper-end of price band. As per reports, Ami Organics plans to move ahead with a pre-IPO placement offer of a maximum of Rs. 100 crores.

So, how does this specialty chemicals maker wish to use its IPO proceeds?

Ami Organics’s Plan to Use IPO Proceed – At a Glance

The IPO will be used to:

  • Repay financial facilities of a maximum of Rs. 140 crores
  • Approximately Rs. 90 crores will be used to fund working capital
  • Addressing general corporate requirements

As of March 2021, this company’s net debt was recorded as Rs. 218.73 crores. In the fiscal year ending on March 2021, Ami Organics recorded revenue of Rs. 340.61 crores against Rs. 239.64 crores from the previous year. Similarly, the net profit of this company for the same period was recorded at Rs. 53.99 crores against the previous year’s Rs. 27.47 crores.

This upcoming IPO will be headed by Intensive Fiscal Services Pvt Ltd., Axis Capital Ltd., and Ambit Pvt Ltd as the issue’s lead managers.

A Key Reminder about the Company!

In essence, Ami Organics is a leading R&D driven manufacturer of specialty chemicals that has found wide application across several industries.

  • It has a diverse portfolio of more than 450 advanced pharmaceutical intermediates, API, and materials.
  • Its pharma intermediates are spread across 17 therapeutic areas including, anti-inflammatory, anti-cancer, anti-depressant, and anti-retroviral.
  • Ami Organics has active export relations in over 20 countries, including China, Japan, Europe, the USA, and Latin America.
  • The most noted domestic customers of Ami Organics include Cipla Ltd. and Laurus Labs.
  • Its three manufacturing facilities based in Gujarat make up a total installed capacity of MTPA.

Final Takeaway

Ami Organics’s pharma intermediates are extensively used to manufacture NCEs and APIs to multiple MNPC companies catering to large and rapidly growing markets of Japan, China, Latin America, Europe, and the USA.

Its well-diversified portfolio and strong presence in the domestic and international market offer it a competitive edge over its peers. That said, currently, the market is in favour of pharma. This could act as a catalyst for the success of this upcoming IPO.

Then again, it is always recommended to analyse the company’s potential, especially its opportunities and limitations, to make an informed decision.

Get all the latest updates on the upcoming IPO of 2021 on the Angel One portal.


Frequently Asked Questions

  1. Who are the promoters of Ami Organics?

Chetankumar Chhaganlal Vaghasia, Parul Chetankumar Vaghasia, Nareshkumar Ramjibhai Patel, and Shital Nareshbhai Patel are the promoters of Ami Organics.

  1. What will be the issue type of Ami Organics IPO?

Ami Organics will have a book-built issue type.

  1. Who is the registrar of Ami Organics IPO?

Link Intime India Private Ltd. is the registrar of Ami Organics.

  1. What was Ami Organics’ profit after tax as of 31 March 21?

The profit after tax for 31 March 21 was Rs. 539.99 million.


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