Aether Industries IPO ends with good subscriptions

Published on May 27, 2022 10:33

The initial public offer (IPO) of Aether Industries received bids for 5,85,34,586 shares as against 93,56,193 shares on offer. The issue was subscribed 6.26 times.

The qualified institutional buyers (QIBs) category was subscribed 17.57 times. The non-institutional investors category was subscribed 2.52 times. The retail investors category was subscribed 1.14 times.

The issue opened for bidding on Tuesday (24 May 2022) and it closed on Thursday (26 May 2022). The price band of the IPO was fixed at Rs 610 - 642 per share.

The offer comprised a fresh issue of equity shares aggregating up to Rs 627 crore and an offer for sale of up to 28,20,000 equity shares.

The company proposes to utilize the net proceeds of the fresh issue towards prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company amounting to Rs 137.9 crore, funding capital expenditure requirements for proposed greenfield project amounting to Rs 163 crore, funding working capital requirements of the company amounting to Rs 165 crore and balance towards general corporate purposes. As of 31 March 2022, the aggregate outstanding borrowing of the company is Rs 141.328 crore.

Ahead of the IPO, Aether Industries on Monday, 23 May 2022, finalized the allocation of 37,42,495 equity shares to anchor investors at an allocation price of Rs 642 per share, aggregating to Rs 240.26 crore.

Aether Industries is a speciality chemical manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. The company has eight chemistry competencies to use for its wide array of products, which enables it to cater to niche and advanced intermediate requirements of a wider range of end-products and applications. All these competencies have been developed in-house, which is one of the core strengths of its R&D team.

Aether Industries reported a standalone net profit of Rs 82.91 crore and total income of Rs 442.54 crore for the nine months ended December 2021.