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

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Aether Industries Ltd. IPO

  • Retail Individual Investor
    1.14x
  • Non-Institutional Investor
    2.52x
  • Qualified Institutional Buyers
    17.57x
  • Employees
    1.06x


About Aether Industries Ltd. IPO

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. 


SWOT Analysis - Aether Industries Ltd. IPO

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).


Competitive Analysis - Aether Industries Ltd. IPO

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.

Looking to invest in an IPO?

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Frequently Asked Questions (FAQs) - Aether Industries Ltd. IPO

What are Aether Industries IPO dates?

Aether Industries IPO will open for subscription on May 24 and close on May 26.

What is Aether Industries IPO price band? 

The price band for the issue is Rs 610 to 642 per share.

Who are the promoters of Aether Industries?

Ashwin Desai, Purnima Desai, Rohan Desai, Dr. Aman Desai, AJD Family Trust, AAD Family Trust, RAD Family Trust, PAD Family Trust and AAD Business Trust are the promoters of Aether Industries.

Who are the Aether Industries IPO Lead Managers?

HDFC Bank and Kotak Mahindra Capital Company are the book running lead managers to the issue.

Who is the registrar of the issue?

Link Intime is the registrar of the issue.

 

What is Aether Industries IPO Minimum and Maximum Lot Size?

The IPO lot size is 23 shares and a retail-individual investor can apply for up to 13 lots.

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