Ami Organics files IPO papers with SEBI; firm’s 2nd attempt at public issue

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June 07, 2021 10:34 AM

Ami Organics, specialty chemicals maker, has filed a draft red herring prospectus (DRHP) with the capital markets regulator SEBI to launch an IPO

Ami Organics IPOAmi Organics said that it is in consultation with its book-running managers for pre-IPO placement of up to Rs 100 crore

Ami Organics, specialty chemicals maker, has filed a draft red herring prospectus (DRHP) with the capital markets regulator SEBI to launch an IPO. The proposed public issue comprises a fresh issue of Rs 300 crore and an offer for sale (OFS) of up to 60.6 lakh shares by its existing promoters and shareholders. Ami Organics said that it is in consultation with its book-running managers for pre-IPO placement of up to Rs 100 crore. Intensive Fiscal Services Pvt Ltd, Ambit Pvt Ltd and Axis Capital Ltd are the book running lead managers to the issue. Link Intime Private Ltd is the registrar to the issue. The equity shares offered through red herring prospectus (RHP) are proposed to be listed on the stock exchanges.

This is the Ami Organics’ second attempt to go public. In 2018, Ami Organics had filed preliminary papers with SEBI and received the capital markets regulator’s approval to launch the initial public offering. However, it did not float the IPO. The company has planned to utilise the proceeds from the issue for repayment of financial facilities of up to Rs 140 crore. The firm will also use up to Rs 90 crore for funding working capital requirements.

Ami Organics OFS consists of

Parul Chetankumar Vaghasia: up to 7 lakh shares
Girishkumar Limbabhai Chovatia: up to 15 lakh shares
Kiranben Girishbhai Chovatia: up to 30.50 lakh shares
Aruna Jayantkumar Pandya: upto 1.74 lakh shares
Hina Indreshbhai Shah: up to 87,300 shares
Harshad Ramlal Sheth: up to 87,280 shares
Dhirajlal Amrutlal Amlani: upto 76,200 shares
Vrushti Atullumar Shah: up to 75,000 shares
Jolitbhai Jasvantlal Shah: up to 63,000 shares
Nishit Atulkumar Shah: up to 55,920 shares
Surabhi Yash Shah: up to 49,000 shares
Narmada Amrutlal Amlani: up to 32,000 shares
Shanti Devi Kankaria: up to 26,500 shares
Divya Mahendrakumar Kankaria: up to 19,000 shares
Chovatiya Haresh H: up to 15,000 shares
Amitaben Jolitbhai Shah: up to 14,910 shares
Saryu Dhirajlal Amlani: upto 14,500 shares
Koladia Mehul M: up to 10,000 shares
Jyotiben Rakeshbahi Lahoti: up to 8,700 shares
Shah Disha Jolit: up to 699 shares

Upon successful listing, Ami Organics will join the likes of Aarti Industries, Hikal Ltd, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd. The average P/E of the industry peer stands at 44.82x. The emerging market and developing economies are expected to lead the overall growth rebound, with the chemicals sector driving the growth story. As the chemical industry lies at the heart of several value chains and acts as a solution provider to other sectors of the economy, it plays a pivotal role in leading a sustainable recovery, the company said in the DRHP.

Specialty chemicals industry can be categorised into a mix of end-use driven segments and application-driven segments. In terms of attractiveness, the various segments across specialty chemicals differ in competitive intensity, margin profiles, defensibility against raw material cost movements, and growth. The Indian chemicals market is valued at $ 166 billion (4% share in the global chemical industry) in 2019. It is expected to reach $ 326 billion by 2025, with an anticipated growth of 12% CAGR. The specialty chemical industry forms 47% of the domestic chemical market, which is expected to grow at a CAGR of around 11-12% over the same period.

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