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AETHER INDUSTRIES LTD IPO

IPO Details

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23 shares
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₹ 610 – 642
₹ Upto 808 crores

Timeline

  • 31-May-2022
  • 01-Jun-2022
  • 02-Jun-2022
  • 03-Jun-2022

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

-   A speciality chemical manufacturer in India producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies (Source: DRHP)
- The business started in 2013, with a vision to create a niche in the global chemical industry
- One of the fastest growing specialty chemical companies in India, growing at CAGR of ~60% between Fiscals 2018 and 2021 (Source: F&S Report as per Company DRHP)

Strengths & Risks

Strengths (3)

Differentiated portfolio of market-leading products

As of September 30, 2021, the product portfolio comprised over 22 products which were marketed to over 30 global customers in 17 countries and to over 100 domestic customers (Source: Company DRHP)

Risks (2)

Subject to certain risks consequent to operations involving the manufacture, usage and storage of various hazardous substances

Manufacturing processes involve manufacturing, storage and transportation of various hazardous substances such as phenol, hydrogen, ethylene oxide amongst others, and the company is required to obtain approvals from various authorities for storing hazardous substances.(Source: Company DRHP)

  • Differentiated portfolio of market-leading products

    As of September 30, 2021, the product portfolio comprised over 22 products which were marketed to over 30 global customers in 17 countries and to over 100 domestic customers (Source: Company DRHP)

  • Focus on R&D to leverage core competencies of chemistry and technology

    As of September 30, 2021, the company had a specialized R&D team of 141 scientists and engineers including 81 scientists (with PhDs or Master of Science degrees) and 60 chemical engineers (Source: Company DRHP)

  • Long standing relationships with a diversified customer base

    The company's customers include over 130 multinational, global, regional and local companies. As of September 30, 2021, the product portfolio was sold to over 30 global customers in 17 countries and to over 100 domestic customers.(Source: Company DRHP)

  • Subject to certain risks consequent to operations involving the manufacture, usage and storage of various hazardous substances

    Manufacturing processes involve manufacturing, storage and transportation of various hazardous substances such as phenol, hydrogen, ethylene oxide amongst others, and the company is required to obtain approvals from various authorities for storing hazardous substances.(Source: Company DRHP)

  • Derive a significant part of revenue from major customers and the company does not have long term contracts with all of these customers

    If one or more of such customers choose not to source their requirements from the company or to terminate long-term contracts, the company's business, financial condition and results of operations may be adversely affected. (Source: Company DRHP)

Financials

Net Worth
Total Income
Total borrowings
Profit after Tax
Basic Earning per Share (EPS)

Industry Overview

- Value of the global chemical industry: In calendar year 2020, the global chemicals market was valued at approximately US$5,027 billion, with China accounting for a substantial market share (39%), followed by the European Union (15%) and the United States (13%). In calendar year 2020, India accounted for an approximately 4% market share in the global chemicals market. According to the F&S Report, the global chemicals market is expected to grow at a CAGR of 6.2% CAGR from US$5,027 billion in calendar year 2020 to reach US$6,780 billion by calendar year 2025. According to the F&S Report, from calendar years 2020 to 2025, the Asia Pacific (APAC) chemicals market is expected to grow at the fastest rate of 7-8%, while the chemicals markets in Western Europe, North America, and Japan are expected to grow at a slower rate of 3-4% since they are relatively mature. (Source: Company DRHP)

- Increase in capital expenditure by Indian chemicals companies: The Indian chemicals industry has increased its capital expenditure over the past decade in order to be well equipped to capture future opportunities. Aggregate capital expenditure incurred by the 30 leading chemicals companies in India has grown at a CAGR of 17% over fiscal 2015 to fiscal 2020. According to the F&S Report, ₹95 billion was spent in fiscal 2020 by the 30 leading chemical companies in India on capital expenditure, as compared to ₹39 billion in fiscal 2010.

Aether Industries Ltd IPO

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23 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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