On Friday, June 3, Aether Industries shares were listed on the BSE and NSE. Shares of the manufacturer of specialty chemicals started trading on the BSE at Rs. 706.15, up 9.9% from the upper end of the IPO price range of Rs. 610–642 per share. The shares were going for Rs 704 each on NSE.
Aether Industries' initial public offering (IPO) was accessible for subscription from May 24 to 26. The business offered its shares in the range of Rs 610 to Rs 642 to raise Rs 808 crore through the primary route. Thanks to competitive bidding from institutional purchasers, whose portion was subscribed 17.6 times and HNI allocation was booked 2.5 times, the offer received a strong response from investors, resulting in an aggregate subscription of more than 6.26 times.
With its Rs 808 crore IPO last month, the manufacturer of specialized chemicals entered the market. Of this, Rs. 627 crore came from a new equity share issue, and the remaining Rs. 181 crores came from an offer for sale (OFS) made by current firm shareholders. Following issuance, the promoter and promoter group shares will decrease to 87.1% from 97%. The company's public shareholding will rise from its previous 3 percent to 12.9%.
The proceeds from the new offering will go toward operating capital needs, debt repayment, and capital expenditures for a projected new project in Surat, Gujarat.
Aether Industries is an Indian maker of specialty chemicals with a focus on creating sophisticated intermediates and chemicals with unique and difficult chemistry and technical core skills.
In 2013, a research and development (R&D) facility was established, and commercial production commenced in 2017. It serves the oil and gas business as well as the pharmaceutical, agrochemical, material science, electronic chemistry, and high-performance photographic sectors.
Operating revenue for the business increased to Rs 450 crore in FY21 from Rs 302 crore in FY20, and net profit increased to Rs 71 crore from Rs 40 crore.
Ather Ltd. has launched at Rs. 704, which is 10% over its issue price, according to Santosh Meena, Head of Research at Swastika Investment Ltd. The company's successful listing can be ascribed to improving market sentiment, the company's excellent growth potential, and positive investor feedback. The business is one of India's fastest-growing specialized chemical firms. placing a strong emphasis on research and development, depending on distinct chemistry and technological core capabilities, and using a rigorous product selection procedure Due to the relocation of industrial operations from China to India and the emphasis on green chemistry, the Indian chemical sector is going through a structural transition. Based on annualized FY22 figures, the issue had a P/E of 72.30. However, given its extraordinary growth possibilities, we think the company merits this premium multiple. A stop loss of Rs. 675 may be maintained by those who requested listing profits. Long-term investments can be made by new investors, and it is advised that current investors maintain their holdings in the business.