Aether Industries IPO Updates: Know All The Latest News

Aether Industries IPO Updates: Know All The Latest News

Specialty chemical company, the initial public offerings (IPO) of Aether Industries Ltd opened on 25.05.2022 for a subscription. This article will talk about the Aether Industries IPO updates. Read on to know more about the Aether Industries IPO subscription status.

Aether Industries IPO Updates: Latest News

The IPO comprises a fresh issue of Rs 627 crore and an “offer for sale” of up to 2.82 million shares by its promoters and shareholders. Of the amount raised, Rs 190 crore will be employed to fund greenfield ventures in Surat, Rs 138 crore to pay all the debts, and Rs 165 crore to fund the working capital needs, the company has stated. The lead managers to the issue are HDFC Bank and Kotak Mahindra Capital. As per the Aether Industries IPO updates, shares are anticipated to be credited on June 2 and the company may list on exchanges the day later.

The chemical firm tries to raise Rs 808.04 crore altogether from its public offer. Out of Rs 808.04 crore, the company tries to raise Rs 627 crore via fresh issues. Now talking about the Aether Industries IPO updates, the company saw its total subscription of 33% on the very first day of booking. Investors have already bid for 30.41 lakh shares against an Initial Public Offering size of 93.56 lakh shares.

  • Retail investors have booked 42% of the percentage set aside for them while non-institutional investors have booked 5% or 1.01 lakh shares assigned to them against a quota of 19.47 lakh shares.
  • QIB (Qualified institutional buyers) have subscribed to 36% of the 27.48 lakh shares assigned to them. Employee reserved share was 54% against 1.17 lakh shares reserved for them.

The maximum subscription quantity for retail investors is Rs 2 lakh. While employees are entitled to subscribe at a maximum of Rs 5 lakh. The firm has already assigned 37,42,495 shares at Rs 642 per share on 23.05.2022 to anchor investors. SBI Mutual Fund, Ashoka India Opportunities Fund (White Oak), Goldman Sachs Funds, and The Nomura Trust are among the seven DIIs and six FPIs investors that took part in the anchor book. Along with these, shares have been assigned to domestic funds such as Aditya Birla Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, Max Life Insurance, and IDFC Mutual Fund, in the anchor book in addition to FPI such as Allianz Global Investor, IIFL UCAL, Amundi mutual funds. 

Out of the complete allocation of 18,22,313 equity shares were assigned to 6 mutual funds amounting to Rs 117 crore 49% of the Total Anchor Book Size and 37,42,495 equity shares to the anchor investors. 

As per an announcement on May 20 from the Ministry of Chemicals and Fertilizers, a seven-member joint task committee led by technology and science secretary Srivari Chandrashekhar has been created to reduce the reliance of India on chemical imports and raise its self-sufficiency. 

Aether Industries began with a research and development (R&D) unit in 2013 and started commercial production in 2017. It caters to the agrochemical, pharmaceutical, material science, high performance photography, coatings,  additives, and oil gas segments of the chemicals industry. 

As of March 31, 2022, the product portfolio of the company comprised more than 25 items. The Surat-based firm is the only manufacturer of 4MEP, T2E, OTBN, NODG, MMBC, DVL, and Bifenthrin Alcohol in India and the biggest manufacturer of 4MEP, T2E, HEEP, and NODG across the globe, by volumes. 

The firm has two sites at Sachin in Surat (Gujarat, India). In the last four years, Aether has replaced the complete imports of these items from China and also began exporting them to some 18 nations. 

Kotak Mahindra Capital Company Limited and HDFC Bank Limited are the book operating lead managers for the issue and Link Intime India Private Limited is the registrar of this offer. The equity shares are intended to be listed on NSE and BSE. As per the reports of Anand Rathi,

“At the high of the issue price-band (Rs642), the stock is valued at 65x annualized 9M FY22. We expect its high and rising market share and strong R&D capabilities to be positive. Risks: For a significant portion of revenue, the business depends on demand from the pharma and agro sectors. Any downturn could affect its performance.”

Moreover, a considerable portion of the revenue of the company arises from major users and it does not carry long-term contracts with all of them. If one or more similar customers select not to source their needs from the firm or to eliminate long-term contracts, financial conditions, business, and outcomes of operations may be impacted, it added.

Aether Industries is focused on producing advanced specialty and intermediate chemicals that include differentiated and complicated technology and chemistry core competencies. The firm has two manufacturing units in Gujarat.

For the nine months ended December 31, 2021, the revenue of the firm stood at Rs 442.54 crore against Rs 334.09 crore the previous year. Net profit for the period was Rs 82.91 crore against Rs 48.25 crore in the previous year. As of December last year, the firm carried a total debt of Rs 234.73 crore. That is all for the Aether Industries Limited IPO subscription status.

Conclusion

Specialty chemicals firm Aether Industries Ltd’s IPO (initial public offering) had been subscribed 44% by the afternoon of May 25, 2022, the second day of booking. Investors for this IPO bid for 41.27 lakh units against an IPO size of 93.56 lakh shares. The Aether Industries IPO updates for the second day are yet to be finalized. If you want to know more about the Aether Industries IPO details, then read this.

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