Aether Industries Ltd. IPO
Aether Industries Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹642
Issue Price
Listing Price
₹706
Listing Price
Listing Gains
+₹64.15 (+9.99%)
Listing Gains
IPO Details
Bidding Dates
24 May - 26 May '22
Bidding Dates
Min. Investment
₹14,030
Min. Investment
Lot Size
23.00
Lot Size
Price Range
₹610 - ₹642
Price Range
Issue Size
571 Cr
Issue Size
Subscription Rate
- Retail Individual Investor1.14x
- Non-Institutional Investor2.52x
- Qualified Institutional Buyers17.57x
- Employees1.06x
About Company
Speciality chemicals manufacturer Aether Industries Ltd has announced the launch of its initial public offering (IPO). Aether Industries is focused on manufacturing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.
The company’s business models include large scale manufacturing of intermediates and speciality chemicals, CRAMS (contract research and manufacturing services) and Contract manufacturing.
It has two manufacturing facilities in Surat, Gujarat. The first facility spans over 3,500 sq mt which includes R&D and Hydrogenation Facilities and Pilot Plant. The second one is a 10,500 sq mt facility than has an installed capacity of 6,096 MT per year.
Aether Industries IPO will open for subscription on May 24 and conclude on May 26. The company has fixed the price band for the issue at Rs 610-642 per share. The IPO comprises of a fresh issue of shares worth Rs 627 crore and an offer-for-sale (OFS) of up to 28.20 lakh shares by promoters and existing shareholders.
At the upper end of the price band, Aether Industries expects to raise around Rs 808.04 crore from the IPO.
The net proceeds from the fresh issue are proposed to be utilised towards prepayment or repayment of all or a part of certain outstanding borrowings, funding capital expenditure for the proposed greenfield project, working capital requirements and general corporate purposes.
Financial Snapshot -Aether Industries Ltd IPO
Aether Industries has been reporting consistent growth in net profit and revenue over the last three year, according to the red herring prospectus filed by the company with the Securities & Exchange Board of India (SEBI). The company’s net profit for the nine months ended December 31, 2021, was Rs 82.9 crore and revenue was Rs 449.31 crore. In the table provided below, you can get a snapshot of Aether Industries in recent years.
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2019 | Rs 206.67 crore | Rs 203.28 crore | Rs 23.34 crore |
| March 2020 | Rs 300.47 crore | Rs 303.78 crore | Rs 39.96 crore |
| March 2021 | Rs 452.94 crore | Rs 453.79 crore | Rs 71.12 crore |
Important Dates - Aether Industries Ltd IPO
| Application opens on | 24th May 2022 |
| Last date of application | 26th May 2022 |
| Date of Allotment | 31st May 2022 |
| Refund begins from | 1st June 2022 |
| Credit of shares to Demat | 2nd June 2022 |
| Listing date | 3rd June 2022 |
Aether Industries Limited IPO Grey Market Premium
| Date | GMP |
|---|---|
| 19th May | Rs.40 |
| 20th May | Rs.20 |
Why should you invest in Aether Industries Ltd. IPO?
Aether Industries has a portfolio of different and market-leading products. It is the world’s largest manufacturer of 4MEP, T2E, NODG and HEEP products by volume. The financial performance has been strong and consistent over the years.
Aether Industries Ltd. IPO - SWOT Analysis
Strengths
Aether Industries has strong and consistent financial performance, and long-standing relationships with a diversified customer base. The company is the biggest manufacturer of 4MEP globally in terms of volume and the only manufacturer of this product in India; the largest manufacturer of HEEP in India and globally in terms of volume; the largest manufacturer of NODG globally in terms of production volume and the only manufacturer of this product in India; and the biggest manufacturer of T2E globally in terms of production volume and the only manufacturer of this product in India.
Weaknesses
The company’s relies on certain industries for a significant portion of its sales. It is also subject to strict quality requirements, regular inspections and audits by its customers.
Opportunities
The global chemicals market is expected to grow at a CAGR of 6.2% and the India Speciality chemical market at a CAGR of 11.2% from 2020 to 2025. The production linked incentive (PLI) scheme, Make in India campaign and competitive tax rates by the government of India is expected to add impetus to the emergence of India as a manufacturing hub for the chemicals industry in the medium term. Through incentives, subsidies and grants under this campaign, Indian companies could gain further ground as companies would want to reduce dependence on China after the COVID-19 pandemic and shift their supply chains.
Threats
Aether Industries faces stiff competition from both domestic as well as multinational corporations. Any adverse decision in the pending litigations against the company and some of its directors. Fluctuation in the prices of raw materials and crude oil is a potential threat to the company’s business operations along with restrictions on import of raw materials and an increase in shipment cost.
Aether Industries Noteworthy Highlights
Check out some of the key details and information about Aether Industries before investing:
- The company’s product portfolio comprises over 25 products.
- Its customers include over 34 global companies in 18 countries and 154 domestic companies.
- The lot size of Aether Industries IPO is 23 shares. Retail-individual investor can apply for up to 13 lots
- In the IPO, the company has reserved 50% of the offer for qualified institutional buyers (QIB), around 35% for retail investors and the remaining 15% for non-institutional investors (NII).
A competitive analysis
Top players in the Indian specialty chemicals industry include Vinati Organics, Clean Science and Technology, PI Industries, Navin Fluorine International Ltd. and Fine Organic Industries.
Take a look at these direct competitors:
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| PI Industries | 40,950 | 5% |
| Vinati Organics | 21,000 | 13% |
| Navin Fluorine International | 18,810 | 19% |
| Clean Science and Technology | 18,088 | 103% (from issue price) |
| Fine Organic Industries | 13,487 | 30% |
How to apply for Aether Industries Ltd. IPO?
You can apply for the Aether Industries Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Aether Industries Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
