On Friday, Aether Industries Limited shares are scheduled to make their market debut. On June 3, at 10 a.m., Aether stock will be launched on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). During its subscription period, the initial public offering (IPO) of Aether Industries had a respectable response from investors. On the last day of subscriptions, 5.26 times were booked for the public issue. According to the creator of UnlistedArena.com, Abhay Doshi, "Aether Industries received a better reaction compared to the recent IPOs." A good listing for Aether Industries' IPO on Friday is anticipated by market experts due to the IPO's strong institutional investor interest, respectable grey market premium, and skilled promoters.
From May 24 to May 26, Aether Industries held its first public offering. The range of prices is Rs. 610 to Rs. 642. The Rs 627 crore fresh issue and the 28,20,000 equity shares offered for sale (OFS) in the Aether IPO. Through the OFS, promoter Purnima Ashwin Desai sold the interest.
According to information made available by the National Stock Exchange, 5.85 crores of the 93.56 lakh shares that were up for sale in the Aether Industries IPO got bids (NSE). While the quota allotted to non-institutional investors (NII) garnered 2.57 times as many subscriptions, the amount reserved for qualified institutional buyers (QIB) attracted 17.57 times as many. There was 1.14 times as much interest in the category designated for retail individual investors (RII).
Market watchers claim that before the IPO, the unlisted shares of Aether Industries were fetching a premium of Rs 23.
Aether IPO Valuation
Amarjeet Maurya, AVP - mid-caps, Angel One Ltd, commented on the public offering's valuation by saying, "Aether Industries has received a respectable reaction from investors. When it comes to values, Aether Industries' historical top-line & bottom-line CAGR of 50% and 75% respectively during FY19-21 makes the post-issue TTM P/E work out to 75.6x (at the upper end of the issue price band). Aether Industries also has a broad customer base, a solid track record of financial stability, and a superior ROE. We think that this valuation is appropriate given all the favorable considerations.
Therefore, he continued, "we are optimistic about the IPO for the long-term horizon.
Aether IPO Listing Expectation, Strategy
The company benefits from skilled promoters, respectable margins, and outstanding top-to-bottom line development. The problem, though, was quite expensive. We might witness a successful launching amid erratic market conditions, and the issue might list at a slight premium of 3-5% "Doshi remarked.
"Given the volatility in the global equities market and the higher valuations that are being asked, we are not anticipating any large listing benefits from these IPOs," the statement reads. For these IPOs, we had given a "subscribe with caution" rating. It is advised that investors who have got the allocation take an exit on listing "the Choice Broking research analyst Rajnath Yadav stated.