Ami Organics Limited had opened its first public offer (IPO) on 1st September. The issue closed after three days of trading, as it closed on 3rd September. The company is now going ahead with its listing on the stock exchanges, which is scheduled to take place on September 14. 2021. The company recognized successful investors with their shares on September 13. It should be noted that Amy Organics IPO Strong participation was witnessed by investors, who left the total subscription at 64.54 times. As per the subscription data of the exchanges, the public issue had received bids for around 42.22 crore equity shares against the IPO size of 65.42 lakh equity shares.
The investors who had subscribed the most to the issue were non-institutional investors (NIIs). He had subscribed the issue about 154.81 times during the three-day IPO. The following were close Qualified Institutional Buyers (QIBs) with a membership of 86.64 times. Then there were Retail Individual Investors (RIIs) who subscribed the issue around 13.36 times during the public issue. The base allotment of the issue was on September 8, a few days after the close of trading.
As per information on IPO Watch, the Gray Market Premium (GMP) for the issue was Rs 150 at the time of writing this article. This indicated that the issue was trading at a premium of Rs 753 to Rs 760 in the unlisted gray market.
Speaking on the upcoming listing, Yash Gupta, Equity Research Analyst, Angel Broking Limited said, “Amy Organics Limited is expected to get the listing on 14th September 2021 and investors will get the allotment in a few days. Since the total IPO was subscribed 64.5 times and the retail portion subscribed 13.36 times, it is expected that one out of twelve investors will get the allotment.
He then said, “Ami Organics’ IPO was priced at 35.6 times and EV/EBITDA in the upper price band of the IPO based on FY21 numbers was 25.7 times. which is at a higher level than the peer group listed. If we look at the current gray market premium, the upper price band of the IPO is ₹145 i.e. 23 per cent. We recommend that short term investors are advised to book profits on the day of listing on receipt of allotment.
The issue size of Amy Organics IPO is Rs 569.64 crore, which includes both fresh issue and offer for sale (OFS). The fresh issue stood at Rs 369.64 crore with around Rs 200 crore and total OFS of 6,059,600 equity shares. The company had already raised around Rs 171 crore from its anchor investors on August 31, 2021, a day before the issue opened. This was achieved at the upper end of the price band which stood at Rs 610 per equity share. Speaking of which, the company’s IPO price band was Rs 603 to Rs 610 per equity share with a face value of Rs 10 per share.
The objective of the proposal was to use the proceeds of the public issue to fund repayment and prepayment of financial facilities availed by the company. The rest is ready to go towards financing the working capital requirements for the company as well as for general corporate purposes. The issue was promoted by Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasiya, Sheetal Nareshbhai Patel and Parul Chetankumar Vaghasiya.
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