Advanced Enzyme Technologies IPO from July 20-22, 2016

Price band fixed from Rs 880 to Rs 896 per equity share

Advanced Enzyme Technologies proposes to open on July 20, 2016, an initial public offer of equity shares of face value of Rs 10 each (equity shares) for cash at a price band from Rs 880 to Rs 896 per equity share consisting of a fresh issue of equity shares aggregating upto Rs 500 million (the fresh issue) and an offer for sale of upto 4,00,000 equity shares by Chandrakant Rathi Innovations and Projects; upto 50,000 equity shares by Kishor Laxminarayan Rathi; upto 30,000 equity shares by Mangala Madhusudan Kabra; upto 17,00,000 equity shares by Vasant Laxminarayan Rathi; upto 5,00,000 equity shares by the Vasant and Prabha Rathi Generation Trust (Collectively the Promoter Group Selling Shareholders); and upto 17,900 equity shares by Kotak Employees Investment Trust; upto 1,62,700 equity shares by Kotak India Venture Fund I and upto 3,36,600 equity shares by Kotak India Venture (Offshore) Fund (collectively the investor selling shareholders); and upto 447,270 equity shares by persons listed in Annexure ‘A’ of the Red Herring Prospectus dated July 11, 2016 (RHP) filed with the Registrar of Companies, Maharashtra, Mumbai, (RoC) (collectively The Other Selling Shareholders-I) and upto 40,000 equity shares by Mukund Madhusudan Kabra; upto 3,50,000 equity shares by Pradip Bhailal Shah (collectively the Other Selling Shareholders-II) (offer for sale), and together with the fresh issue (the offer).

The offer comprises a net offer to the public of equity shares (the net offer) and reservation of equity shares aggregating upto Rs 20 million for subscription by eligible employees (as defined in the RHP) not exceeding five per cent of the post-offer paid-up equity shares capital (the employee reservation portion). A discount of Rs 86 per equity share on the offer price is applicable to all eligible employees.

The offer will close on July 22, 2016. Bids can be made for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter. The company, in consultation with the selling shareholders and the BRLMs, may consider participation by anchor investors. The anchor investor shall bid on the Anchor Investor Bidding Date; i.e. one working day prior to the bid/offer opening date.

The BRLMs to the Offer are ICICI Securities and Axis Capital. The equity shares offered through the Offer are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

The offer is being made through the book building process in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the SEBI regulations), wherein 50 per cent of the offer shall be allocated on a proportionate basis to qualified institutional buyers (QIBs) (the QIB portion), provided that the company, in consultation with the selling shareholders and BRLMs may allocate upto 60 per cent of the QIB portion to anchor investors (anchor investor portion) on a discretionary basis, out of which atleast one-third shall be reserved for domestic mutual funds only, subject to valid bids being received from domestic mutual funds at or above the anchor investor offer price. Further, five per cent of the QIB portion (excluding the anchor investor portion) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIB bidders (other than anchor investors), including mutual funds, subject to valid bids being received at or above the offer price. Further, not less than 15 per cent of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders, subject to valid bids being received at or above the offer price. All potential bidders, other than anchor investors, are mandatorily required to participate in this offer through an Application Supported by Blocked Amount (ASBA) process providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (SCSBs). Anchor investors are not permitted to participate in this offer through the ASBA process.

The company is engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes. It operates in two primary business verticals namely healthcare and nutrition (human and animal) and bio-processing (food and non-food).

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