Ather Industries IPO: The initial public offering (IPO) on Wednesday got 49% subscription driven by retail investors. The IPO will be available for bidding till tomorrow (26th May). The price band of IPO is from 610 642 per equity share at face value 10 each. The bid lot is in 23 equity shares and multiples thereof.
On the second day, NSE data showed that Ather IPO Cumulative bids were received for 45,68,996 equity shares against the proposed size of 93,56,193 equity shares – a subscription of 49%.
The portion earmarked for retail individual investors was subscribed 67 per cent against the reserve size, while the portion for non-institutional investors (NIIs) was subscribed only 16% against the reserve size. While qualified institutional buyers got a subscription of 39 per cent against the reserve share.
Of the total IPO size, 50% will be allocated to Qualified Institutional Buyers (QIBs), while 15% will be earmarked for non-institutional investors (NIIs), and the remaining 35% will be reserved for retail individual investors. RII).
The company plans to increase 808 crore from IPO. This issue contains a new issue of 627 crore and offer for sale of 28.2 lakh shares by promoter Purnima Ashwin Desai.
In their research note, Siddhant Khandekar and Dhawan Shah, Research Analysts, ICICI Direct, said in their research note, “Ather Industries is a niche player in the specialty chemicals business and dominates the market share in select products with high margins. On the upper price band, they said, It has a value of ~58.9x EV/EBITDA and ~72.4x P/E for 9MFY22 (annual), which sounds demanding.”
“The IPO can be avoided because of the increased valuation,” both said.
According to analysts, the major risks and concerns for Aether are:
Marquee receives a substantial portion of the revenue from customers without having to enter into long-term contracts with all these customers.
Dependence on certain industries for a significant share of sales.
– Dependence on certain export incentives.
However, Ventura said in its report, “At the cost of the IPO 642, the value of AETHER is 32.2X FY24 P/E. Considering the growth opportunities for specialty chemicals in the pharma, agrochemicals and FMCG space, and improving prospects for contractual manufacturing and creams under the Make-in-India initiative, we recommend a membership rating with a price target 797, which is 24% higher than the IPO price in 18 months.”