Aether Industries, a manufacturer of speciality chemicals, is open for subscription today. The Aether Industries IPO subscription will remain open till May 26, 2022. The chemical company aims to raise Rs 808.04 crore from its public offer out of which Rs 627 crore is expected from fresh issues whereas Rs 181.04 crore is expected to come via the offer for sale (OFS) route. The proceeds from the fresh issuance will be used to fund capital expenditure requirements for the proposed greenfield project in Surat, Gujarat, payment of debt, and fund working capital requirements.
Aether IPO: Subscription Status
As per Aether IPO subscription status, after day one of bidding, the public issue has been subscribed 0.33 times whereas its retail portion has been subscribed 0.54 times.
Aether IPO price band has been fixed at Rs 610 to Rs 642 per equity share.
Aether IPO: GMP Today
Shares of Aether are available at a premium of Rs 10 in the grey market today. According to market observers, Aether IPO GMP today is Rs 10, which is Rs 6 higher than its yesterday’s grey market premium (GMP) of Rs 4.
Aether IPO: Financials
In 9 months of the financial year 2021-22, Aether Industries has posted total revenue of Rs 449.3 crore while its PAT (Profit After Tax) stood at Rs 82.9 crore in this period.
Amarjeet S Maurya of Angel One said in terms of valuations, the post-issue TTM P/E works out to 75.6x (at the upper end of the issue price band), which is reasonable considering its historical top-line and bottom-line CAGR of 50 per cent and 75 per cent, respectively, over FY19-21.
“It has a diversified customer base, strong financial track record and higher ROE. Considering all the positive factors, we believe this valuation is at a reasonable level. Thus, we recommend a subscribe rating on the issue,” said Maurya.
Aether IPO: Should You Subscribe?
Giving subscribe tag to Aether IPO, Astha Jain, Senior Research Analyst at Hem Securities said, “Company is bringing the issue at a price band of ₹610-642 per share at p/e multiple of 72x on post-issue 9Months annualized PAT basis. Company with its differentiated portfolio of market-leading products has focused on R&D to leverage its core competencies of chemistry and technology. The company has long-standing relationships with a diversified customer base & with synergistic business models focused on large Scale Manufacturing, CRAMS and Contract Manufacturing. On the financial front, the company has shown strong and consistent financial performance. A company with its experienced promoters and senior management with extensive domain knowledge is looking decent avenue to deploy the funds. Hence we recommend “Subscribe” on the issue.”
Aether Industries is focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology. The products of the company find application in various sectors like Pharmaceuticals, Agrochemicals, Specialty, Electronic Chemicals, Material Sciences, High-Performance Photography etc.
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