Lot size and allotment details
Ami Organics lot size is 24 equity shares and can be displayed for bidding in multiples of 24 pertaining to the equity shares. The division goes this way: 35% has been set aside for retail investors, 50% reserved for qualified institutional investors and the leftover 15 per cent for non-institutional investors. The allocation date is most probable to be announced by September 8 and the tentative listing date arrives to be on September 4. Link Intime India Private Ltd is the IPO registrar for the company.
A freshly mapped GMP
The grey market observers claim that Ami Organics shares are indicating a premium of ₹162 wherein its IPO includes a new issue of Rs. 200 crores with an offer of sales of 6,059,600 equity shares by shareholders. After the IPO bidding, the promoter’s holdings may decline from 47.2% to 41.1%.
Financials of Ami Organics
Ami Organics gathers a maximum percentage of its revenue from global market investors. Exports conferred 51.5% of the company’s revenues with effect from March 2021. As of FY21, the company has accounted for revenues worth ₹340 crore with a net profit of ₹54 crore.
Comments
“The company has shown consistent financial performance with sales growth at CAGR of 19.5% and restated profit after tax growth at CAGR of 52.3% between the Fiscals 2019 and 2021. The financials for 2020-21 doesn’t include revenue from the acquisition of the two plants. We are positive about the long-term prospects of the Company. Hence, we recommend a “Subscribe” rating to this IPO,” suggests brokerage, Anand Rathi.
Ami Organics issue is available at the upper end of the IPO price band at 41.2x its FY21 earnings, with a market cap of Rs. 22,227 million. Further on the FY21 earnings basis, the company is trading below the industry average of 48.91x. Looking at the P/B ratio on the upper price band, book value and P/B are Rs. 53 and 11.51x respectively along with a RoNW of 32.35%, Anand Rathi averred.
