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Aether Industries IPO: Aether Industries’ initial public offering (IPO) for specialty chemicals, which opened for subscription on Tuesday, May 24, 2022, was nearly 39 percent oversubscribed by 11:57 a.m. on the second day of bidding.

Data from the National Stock Exchange (NSE) showed that it received a total of 36.88.464 shares of purchase on both exchanges, compared to 93.56.193 shares offered.

Aether Industries’ initial public offering of Rs 808.04 crore will be available for subscription until Thursday, May 26, 2022, and the company’s price range has been set at 610-642 rupees per share.

Aether’s initial public offering consists of a new issue of Rs 627 crore and an Offer for Sale (OFS) of 28,20,000 shares of stock. Promoter Purnima Ashwin Desai will sell the stake through OFS.

Aether Industries is a specialty chemicals manufacturer in India focused on the production of advanced intermediates and specialty chemicals incorporating complex and differentiated chemistry and technological core competencies. It started with a Research and Development (R&D) unit in 2013 and started commercial production in 2017. It caters to the pharmaceutical, agrochemical, materials science, electronic chemical, high performance photography and oil and gas industries.

The net proceeds from the new issuance will be used to fund the capital expenditure requirements of the proposed founding project, prepay or repay all or part of existing loans, and fund working capital requirements and general corporate purposes, according to information in the red herring prospectus (RHP).

Half of the issuance volume is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and the remaining 35% for individual investors.

Investors who want to sign up for the Aether IPO can bid on lots of 23 shares of equity and complications after that. At the top price bar, they will shell out Rs 14,766 for a single piece from Aether Industries. The shares will be listed in both BSE and NSE.

Applicants should also note that the deadline for confirmation of UPI authorization is Friday, May 27, 2022, until 12:00 PM. If they fail to do so, their applications may not be considered.

HDFC Bank and Kotak Mahindra Capital are the lead managers of the offer while Link Intime India is the issue registrar.

Before heading to its IPO, Aether Industries on Monday raised more than Rs 240.26 crore (Rs 2,40,26,81,790) from 25 major investors instead of 37,42,495 shares of stock at Rs 642 each, it said. Showed data from stock exchanges.

Major investors include SBI Mutual Fund (MF), Goldman Sachs, Nomura, Axis MF, Aditya Birla Sun Life MF, Kotak MF, IDFC MF and Tata MF among others.

The research teams of IIFL Securities, Reliance Securities, Anand Rathi Share and Stock Brokers and Swastika Investmart gave their long-term “opt-in” rating to the offer.

IIFL Research said in its IPO note: “At the top price range of Rs 642, Aether Industries Limited is claiming a PE multiplier of approximately 87.2X based on its FY21 earnings while the company’s price-to-sales ratio is 17.7X of FY revenue 21. The average PE multiplier in the industry is 83.35X from FY21. Given the differentiated portfolio of market-leading products, long-term relationships with a diverse client base, and plans to expand its product portfolio and expand its distribution network in the international market, we recommend engaging in the issue of a long-term perspective.”

Reliance Securities noted in its report, “In its annual financial statements for fiscal year 22, the IPO amounted to 48.7x EV/EBITDA, 13.9x EV/Sales, and 72x P/E. The company focuses on research and development to leverage core competencies of chemistry and technology. It has A group of experienced and talented promoters with a strong educational background and hands-on experience with global giants like Dow Chemical.The company caters to a diversified client base in India and abroad.Due to its strong and sustainable financial track record, differentiated portfolio of market leading products, global awareness and strong product oriented portfolio Towards technology and its focus on QEHS (Quality, Environment, Health and Safety), we recommend getting involved in this issue.”

The shares are likely to be allotted on Tuesday, May 31, 2022, and the shares are expected to be listed on Friday, June 3, 2022, according to the schedule provided in RHP.

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