Specialty chemicals firm Ami Organics on August 27 fixed the price band for its initial public offering at Rs 603-610 per equity share. The offer will open for subscription on September 1.
The IPO consists of a fresh issue of Rs 200 crore and an offer for sale (OFS) of 60,59,600 equity shares by 20 shareholders including Kiranben Girishbhai Chovatia, Parul Chetankumar Vaghasia, Girishkumar Limbabhai Chovatia, and Aruna Jayantkumar Pandya.
The company plans to raise Rs 569.63 crore at the higher end of the price band. The minimum bid lot size is 24 equity shares and in multiples of 24 equity shares.
Retail investors can subscribe for a minimum of Rs 14,640 worth of shares in a single lot, and the maximum investment would be Rs 1,90,320 for 13 lots.
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The fresh issue size has been reduced to Rs 200 crore from Rs 300 crore after the company raised Rs 100 crore in a pre-IPO placement issue.
The company will utilise net proceeds from its fresh issue for repaying of debts and working capital requirements.
Promoters – Nareshkumar Ramjibhai Patel, Chetankumar Chhaganlal Vaghasia, Shital Nareshbhai Patel, and Parul Chetankumar Vaghasia have 45.17 percent pre-offer shareholding in the company.
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The specialty chemicals manufactured by the company are mainly used for the development and manufacturing of advanced pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs) and New Chemical Entities (NCE), and key starting material for agrochemical and fine chemicals.
Its pharma intermediates used for manufacturing of APIs and NCEs portfolio has expanded from over 425 products as of March 2019, to over 450 products as of March 2021. Pharma intermediates business accounted for 88.41 percent of total revenue in FY21, while exports contributed 51.57 percent to total revenue.
Intensive Fiscal Services, Ambit, and Axis Capital are appointed as the book running lead managers to the issue.
