Vijaya Diagnostics and Ami Organics IPO Open, Here’s One to Expect!

05 August 20226 mins read by Angel One

Healthcare chain Vijaya Diagnostics and specialty chemical manufacturer Ami Organics are ready to open for public subscription. Their respective public offer will open on 1 September and will conclude on 3 September.

Collectively, these companies plan to raise nearly Rs. 2,465 crores via their public offer. Analysts believe that the IPO frenzy will keep the market abuzz for the remainder of this fiscal year. Regardless, investors keen on speculating on these two companies are keeping a close tab on their development.

Here’s what they are expecting from Vijaya Diagnostics and Ami Organics IPO.

Vijaya Diagnostics – IPO in Brief

Vijaya Diagnostics plan to raise Rs. 1,895.04 crores from its public offer. This public offer will be purely an OFS of a total of 35,688,064 shares which will be listed on both NSE and BSE. The offer for sale will be by promoters Karakoram Ltd., Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I, and S Surendranath Reddy. This OFS will dilute nearly 35% of promoters and shareholders’ stake in this company.

Here’s a quick break-up of the same:

Surendranath Reddy – 50.98 lakhs shares
Karakoram Capital- 2.95 crores shares
Kedaara Capital – 11.02 lakhs shares

Vijaya Diagnostics has fixed its IPO price band at Rs. 522-531. So, at the upper end of its price band, the company is expected to raise nearly Rs. 1,895 crores. Note that Vijaya Diagnostics IPO has a provision of an employee discount of Rs. 52 in this IPO.

So, How Does the Company Plans to Use Its IPO Proceeds?

Since Vijaya Diagnostics IPO will be purely an OFS, the company will not generate any proceeds. However, this company intends to benefit from the listing in these ways:

Gain wider exposure
Derive benefits of getting listed on stock exchanges

What is the Expected GMP of Vijaya Diagnostics?

At the time of writing on 31 August, the Grey Market Price or Vijaya Diagnostics GMP stands at Rs. 10. Interestingly, Vijaya Diagnostics’ GMP has plummeted significantly in the past 5 days. It has nosedived from a strong Rs. 40 to a meagre Rs. 10 before its IPO launch.

When Will Vijaya Diagnostics Shares be Allotted?

As per Vijaya Diagnostics IPO’s tentative timeline, the public offer’s basis of allotment is scheduled for 8 September. Accordingly, the company’s shares will be allotted to investors’ DEMAT account on 13 September.

Ami Organics – IPO in Brief

This specialty chemical manufacturer plans to raise about Rs. 570-crores via its IPO. This company has set the price band for its IPO at Rs. 603-610 per share to meet its target. At its upper-end, Ami Organics plans to attain a market value of nearly Rs 1,934.8 crores post its IPO.

As per Ami Organics’ DRHP, this public offer will comprise a new issue of shares worth Rs. 200 crores. It will also include an OFS of 6,059,600 equity shares worth nearly Rs. 370 crores by its promoter Parul Chetankumar Vaghasia and others. Its shares will be listed on both NSE and BSE.

Ami Organics also made a pre-IPO issue worth Rs. 101 crores to entities such as Platus Wealth Management, Malabar India Fund, and IIFL Opportunities Fund at Rs. 603 per share.

So, How does Ami Organics Plan to Use its Proceeds from IPO?

Ami Organics plans to use its net proceeds from this public offer to account for these:

It will use around Rs. 90 crores to boost its working capital requirement.
This company will use Rs. 140 crores to lower its existing debt.

What is the Expected GMP of Ami Organics?

For nearly a week, the company traded at a range of Rs. 50 to Rs. 60. However, on 31 August noon, the GMP of Ami Organics stood at Rs. 125/130. Analysts think this to be a good sign for its upcoming public issue. Experts believe that the good performance of the newly listed IPOs is acting as a catalyst behind the surging premium of its shares in the grey market.

When Will Ami Organics Shares be Allotted?

Same as Vijaya Diagnostics IPO, the shares of Ami Organics’ basis of allotment is scheduled for 8 September. Also, the allotted shares will be credited to investors’ DEMAT account on 13 September.

Bottom Line

Vijaya Diagnostics is among the market leaders in recent times. For instance, it managed to record an industry-leading EBITDA Margin. Also, its capability to leverage its operations and a wider network base allow it to record robust revenue and a smooth cash flow.

On the other hand, Ami Organics boasts of a diversified portfolio with an excellent R&D structure. Also, when compared to its immediate peers, this company is reasonably valued.

On the whole, the market is optimistic about these companies. Regardless, investors who plan to subscribe to these upcoming IPOs or their shares, later on, should weigh in the accompanying prospectus and limitations in advance.

Check out the Angel One blog section for more updates on upcoming IPOs.

Frequently Asked Questions

Who is the lead manager of Vijaya Diagnostics?

Entities such as ICICI Securities Limited, Edelweiss Financial Services Ltd., and Kotak Mahindra Capital Company Limited are the lead managers of Vijaya Diagnostics IPO.

What is the market lot of Vijaya Diagnostics IPO?

One market lot of Vijaya Diagnostics IPO comprises 28 shares worth Rs. 14,868. A retail investor can apply for a maximum of 13 lots or 364 shares worth Rs. 193,284.

What is the lot size of Ami Organics IPO?

The market lot size of this upcoming IPO is 24 shares worth Rs. 14,640. Retail investors can subscribe to a maximum of 13 lots, i.e., 312 shares worth Rs. 190,320.

What is the issue type of Ami Organics IPO?

Ami Organics will follow the book build issue type.