Aether Industries Limited is an Indian specialty chemical company specialising in advanced intermediates and specialty chemicals that need complicated and distinct chemistry and technical core skills. Aether Industries IPO will hit the stock market in 24 May 2022.
Table of Contents
About Aether Industries
Their company was founded in 2013 with the goal of carving out a position in the global chemical industry through an innovative approach to chemistry, technology, and systems that would lead to long-term success.
During the initial phase of their development, which lasted until Fiscal 2017, they concentrated on growing their workforce and infrastructure, as well as developing their core skills through R&D. In Fiscal 2017, they started the second phase of their revenue generation operations.
Between Fiscal 2019 and Fiscal 2021, they grew at a CAGR of over 49.5 percent, making us one of India’s fastest-growing speciality chemical firms. They are concentrating on the chemistry and technology core competencies approach.
Business Model
Chemical companies typically have one or two chemistry competencies to use across their overall product portfolio. Nevertheless, they have eight chemistry competencies to use across their diverse product portfolio, allowing them to meet the niche and advanced variable needs of a broader variety of end-products and applications.
All of these skills were developed in-house, which is one of their R&D team’s greatest assets. Large-scale manufacturing of their own intermediates and specialty chemicals, contract research and manufacturing services, and contract/exclusive manufacturing are the three business concepts they use.
They are one of the few Indian specialty chemical organisations to have successfully introduced these three distinct business models into commercial production in just five years.
Products
They select items primarily on chemical complexity, niche applications, minimal competition, scalability, and commercial viability, among other factors.
They produced advanced intermediates and specialty chemicals solutions with applications in the pharmaceutical, agrochemicals, material science, coatings, high-performance photography, additives, and oil & gas divisions of the chemical sector using these standards, and they maintain to do so.
Their product line consisted of over 22 products as of September 30, 2021. As per Frost & Sullivan, they were the sole producer of 4MEP, MMBC, T2E, OTBN, NODG, DVL, and Bifenthrin Alcohol in India in CY2020, and the globe’s biggest producer of 4MEP, T2E, NODG, and HEEP by volume. (Source: F&S Report December 2021)
Aether Industries IPO
Aether Industries Limited, headquartered in Surat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 757 Crores & 2,751,000 equity shares on 28 December 2021.
The offer includes a fresh issue of 757 crores and there is offer for sale (OFS) of 2,751,000 equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 131 crores in this issue.
They got for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 550.74 | 452.94 | 300.47 | 206.67 | |
| Total Revenue | 295.65 | 453.79 | 303.78 | 203.28 | |
| Profit After Tax | 57.51 | 71.12 | 39.96 | 23.33 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 7.36 | 7.36 | 3 |
| Financial Year 2020 | 4.24 | 4.24 | 2 |
| Financial Year 2019 | 2.48 | 2.48 | 1 |
| Weighted Average | 5.51 | 5.51 | |
| 30 Jun. 2021 | 5.18 | 5.18 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The main strengths of the company, they feel, enable them to compete successfully in the sector:
- Market-leading product offerings that is differentiated.
Emphasis on R&D to capitalise on their chemical and technology strengths. - Long-term consumer ties with a diverse clientele.
- Large-scale manufacturing, CRAMS, and contract manufacturing are all examples of synergistic business models.
- Reliability, Environment, Healthcare, and Safety are all priorities (QEHS).
- Financial performance that is stable and solid.
- Senior Management with considerable sector expertise and experience as promoters.
Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 1 | Clean Science and Technology Limited | 128.52 |
| 2 | 2 | Navin Fluorine International Limited | 76.86 |
| 3 | 1 | Vinati Organics Limited | 73.17 |
| 4 | 1 | PI Industries Limited | 58.19 |
| 5 | 5 | Fine Organic Industries Limited | 95.60 |
Note
- On December 24, 2021, the closing NSE price of these equity shares was retrieved from the NSE portal.
- All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.
Aether IPO Details
| IPO Opening Date | 24 May 2022 |
| IPO Closing Date | 26 May 2022 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 610 to 642 per equity share |
| Market Lot | 23 shares |
| Min Amount | 14,766 |
| Listing At | BSE, NSE |
| Issue Size | 800.89 Crores |
| Fresh Issue | 757 Crores |
| Offer for Sale | 2,751,000 equity shares |
Aether Industries IPO Date
Aether IPO opening date is 24 May 2022, and the closing date is 26 May 2022. The Aether Industries issue may list on 03 Jun 2022.
| IPO Opening Date | 24 May 2022 |
| IPO Closing Date | 26 May 2022 |
| Basis of Allotment Date | 01 Jun 2022 |
| Initiation of Refunds | 01 Jun 2022 |
| Credit of Shares to Demat Account | 02 Jun 2022 |
| IPO Listing Date | 03 Jun 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Aether Industries Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Aether Industries Limited IPO.
Aether Industries IPO GMP
Aether Industries IPO Grey Market Premium is 5. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
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| 24 May 2022 | 5 | 0 | 0 |
Check Out the GMP of all Other IPOs
Aether Industries IPO Review
Aether Industries IPO review : If you are looking for answer of your question that Aether Industries IPO is good or bad then you are apply for this IPO with a long term view.
Aether Industries Limited IPO Risk
- Their business relies on their production facilities and will continue to rely on them, and they are exposed to certain risks in their production process.
- They rely on key clients for a substantial chunk of their revenue, and they don’t have long-term contracts with all of them.
- Their dependency on particular industries for a major portion of their revenues could be detrimental to their company.
- To safeguard their intellectual property, they use a combination of trade marks, trade secrets, copyright law, and contractual constraints.
- Since their export sales and a portion of their costs are denominated in foreign currencies, exchange rate movements may have a negative impact on their results of operations.
Other Threats
- For their future success, they rely on their R&D exercises.
- Noncompliance with, and modifications to, safety, health, environmental, and labour laws, as well as other regulatory standards, may have a negative impact on their operations.
- The effect of the COVID-19 pandemic is unknown and developing, and it could have a negative influence on their business.
- They have previously failed to file a regulatory filing with the MCA in a timely manner as required by law.
- A percentage of the Net Proceeds may be used to repay or prepay loans taken out with HDFC Bank Limited.
- Several lawsuits have been filed against their company and some of its directors. Any negative outcome in these actions could have a negative impact on their business.
Core Competency
They specialise in solutions that are the result of a sophisticated chemical and technology core competency marriage. Grignards, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, homogeneous and heterogeneous catalysis, cross coupling chemistry, and metathesis/polymerization chemistry are some of their chemistry core competences.
Constant reaction technology, high pressure reaction technology, fixed bed reaction technology, distributed control system (“DCS”) process automation, and high vacuum distillation technology (wiped film/short path) are instances of their technology core strengths.
They have established a chemical and technology-oriented sales vision, as opposed to a product and industry-oriented sales vision, as a result of their concentration on core strengths. Their focus on core strengths also helps each other mitigate risk.
Production Plant
They have two areas in Sachin, Surat (Gujarat, India). Their Production Plant 1 is a 3,500 square metre facility that houses R&D, analytical sciences units, a pilot plant, a CRAMS laboratory, and a hydrogenation facility.
As of September 30, 2021, their Production Plant 2 spans roughly 10,500 square metres and serves as a large-scale production plant with an established ability of 6,096 MT per year divided across three buildings that host 16 manufacturing lines.
According to Dr. Pankaj Jayantilal Gandhi, Chartered Engineer, their capacity utilisation was 80.87 percent in the six months ended September 30, 2021 and 73.75 percent in Fiscal 2021.Every plant is furnished to operate independently.
Aether IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Aether Industries Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 26 May 2022 | 1 | |||||
| 25 May 2022 | 2 | |||||
| 24 May 2022 | 3 |
Management
Their Promoters, who include their Managing Director Ashwin Jayantilal Desai and our executive (full-time) Directors Purnima Ashwin Desai, Rohan Ashwin Desai, and Dr. Aman Ashvin Desai, have around 125 years of collective chemical sector knowledge.
Their Promoters are all career technocrats who are actively involved in essential elements of their business, such as R&D, process and plant engineering, finance, and marketing.
Their top leadership group also has chemical industry expertise. The majority of their management staff has been with company for more than 5 years. Career experts like Dr. James Ringer, Raymond Paul Roach, and Dr. Norbert Flüggen make up their senior management team.
Promoters
- Ashwin Jayantilal Desai
- Purnima Ashwin Desai
- Rohan Ashwin Desai
- Dr. Aman Ashvin Desai
- AJD Family Trust
- PAD Family Trust
- RAD Family Trust
- AAD Family Trust
- AAD Business Trust
Promoter’s Holding
| Pre Issue Share Holding | 98.57% |
| Post Issue Share Holding |
Aether Industries IPO Prospectus
Contact Details
Aether Industries Limited
Plot No. 8203,
GIDC, Sachin, Surat
394230, Gujarat,
Tel: +91 261 660 3360
E-mail: [email protected]
Website: www.aether.co.in
Registrar
LINK INTIME INDIA PRIVATE LIMITED
C 101, 1st Floor, 247 Park
L.B.S. Marg,
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Telephone: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- HDFC BANK LIMITED
- Kotak Mahindra Capital Company Limited
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Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
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Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
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Note:
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FAQ
Aether IPO Opening Date?
Aether Industries limited IPO will open in 24 May 2022.
Aether IPO Listing Date?
Aether Industries limited IPO will list in 03 Jun 2022.
Aether Industries IPO GMP Today?
Aether Industries IPO Grey Market Premium is INR 5.
Aether IPO Allotment Date?
Aether Industries Limited IPO basis of allotment will be in 01 Jan 2022.
Lot size for Aether IPO?
Lot size for Aether Industries Limited IPO is 23.
