Ami Organics IPO

 

Ami Organics is a major R&D-driven manufacturing company of specialty chemicals with a wide range of end uses, with an emphasis on the improvement and production of innovative pharmaceutical substrates (“Pharma Intermediates”) for controlled and generic active pharmaceutical ingredients (“APIs”), as well as New Chemical Entities (“NCEs”).  Ami Organics IPO will hit the market on 01 September 2021.

About Ami Organics

The year was 2004, and they founded Ami Organics Limited with the future needs of the pharmaceutical sector in mind. They have been working to become a pharmaceutical intermediate production facility that brings together the best of chemical and pharmaceutical discoveries employing cutting-edge technologies and equipment since the start.

They promote the development and marketing of pharmaceutical intermediate goods as part of their commitment to the health-care industry.  They focus on expanding their services to have the greatest influence on the global pharmaceutical sector.

They are established on a foundation of extremely dedicated and research-driven medical facilities.

Presence

They are based in Gujarat, India’s westernmost state, and have a substantial market footprint in more than 27 nations.

Ami Organics Limited, as a diversified supplier of global healthcare solutions, serves both the home and foreign markets, including North and South America, Europe, and Asia.

They are committed to expand their cooperation and generate future synergies with various businesses in order to establish our position in the global market.

Mission

With the establishment of Ami Group, they set out on a goal to turn rational money into high-quality healthcare goods that will improve people’s quality of life, as well as specialty chemicals for agrochemicals, cosmetics, and polymers.

Ami Organics Limited is committed to maximizing the use of healthcare resources while also successfully meeting Partner’s requirements for a diverse product portfolio, bespoke synthesis, or systems integration competence in partner’s next projects.

Acquisition

Furthermore, They recently finished the acquisition of 2 additional GOL production plants.  They have incorporated preservatives (parabens and parabens formulations with end uses in the cosmetics, animal food, and personal care industries)

They also help in other specialty chemicals (with end uses in the cosmetics, dyes, polymers, and agrochemicals industries, among others) to their current product portfolio.

According to the F&S Report, they has a considerable market share in the supply of specific paraben derivatives internationally.

The acquisition is in keeping with their inorganic growth strategy of expanding into the speciality chemicals industry, and they believe it will allow them to considerably diversify our existing product range, allowing them to achieve rapid growth.

Ami Organics IPO

Ami Organics Limited, headquartered in Gujarat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of nearly INR 1500 crore on 06 June 2021.

The Offer includes a fresh equity of Rs. 300 crore and an offer for sale(OFS) up to 6,059,600 equity shares, by the promoters of equity shares with face value of Rs. 10 each.

The proceeds of the offering will be utilized to settle up to Rs 140 crore in credit loans. The company will also invest up to 90 crore to fulfill its working capital needs.

They got approval from Securities and Exchange Board of India(SEBI) on 27 July, 2021 to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year ended ( in Cr.)
	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	413.27	231.89	213.15
Total Revenue	341.99	242.49	238.90
Profit After Tax	54.00	27.47	23.30

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	17.14	17.14	3
Financial Year 2020	8.72	8.72	2
Financial Year 2019	7.40	7.40	1
Weighted Average	12.71	12.71

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

• A broad and diverse product portfolio, backed up by solid R&D and process chemistry expertise;
• A large geographic footprint and a diverse customer base with long-term partnerships;
• The chemicals manufacturing business, in which the Firm works has high entry barriers
• Proficiency in sales and marketing;
• Skilled and passionate management team;
• Stable financial results

Ami Organics IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	5	Aarti Industries Ltd	56.98
2	2	Hikal Ltd	35.44
3	10	Valiant Organics Ltd	37.11
4	1	Vinati Organics Ltd	67.45
5	10	Neuland Laboratories Ltd	33. 02
6	10	Atul Ltd	38.74

Ami Organics IPO Details

IPO Opening Date	01 September 2021
IPO Closing Date	03 September 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	603  to 610
Market Lot	24 Shares
Min Order Quantity	24 Shares
Listing At	BSE, NSE
Issue Size	Rs. 1500 cr.
Fresh Issue	Rs. 300 Cr.
Offer for Sale	6,059,600 equity shares

Ami Organics IPO Date

The Ami Organics IPO opening date is 01 September 2021, and the closing date is 03 September 2021. The issue may list on 14 September 2021.

IPO Open Date	01 September 2021
IPO Close Date	03 September 2021
Basis of Allotment Date	08 September 2021
Initiation of Refunds	09 September 2021
Credit of Shares to Demat Account	13 September 2021
IPO Listing Date	14 September 2021

Ami Organics IPO Subscription

Date	Day	QIB	NII	Retail	Employees	Total Subscription
01 Sep 2021	1	1.39	0.41	2.83	N/a	1.90
02 Sep 2021	2	1.43	1.51	6.35	N/a	3.90
03 Sep 2021	3	86.64	155.44	13.42	N/a	64.59

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimal level of 1 lot, based on availability, for every shareholder.

Ami Organics IPO 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 Ami Organics IPO.

Ami Organics IPO GMP

Ami Organics IPO Grey Market Premium is 147. You can check out other IPO GMP on below Links.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
13 September 2021	147	1200	100
12 September 2021	156	3800	400
11 September 2021	149	1800	200
10 September 2021	143	2600	250
09 September 2021	157	3300	350
08 September 2021	165	2700	300
07 September 2021	169	3800	450
06 September 2021	154	3500	400
05 September 2021	145	6200	650
04 September 2021	118	4600	450
03 September 2021	105	3200	300
02 September 2021	150	4800	500
01 September 2021	119	5800	600
31 August 2021	93	5300	550
30 August 2021	66	2700	250
29 August 2021	72	3900	400
28 August 2021	68	4500	450
27 August 2021	65	3600	350
26 August 2021	No Trade	No Trade	No Trade

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Ami Organics IPO Review

Ami Organics IPO is looking promising for long term after looking at the companies fundamentals & management interview. So you can apply for long term without any issues.

While talking about listing gain it will be totally depend on the market volatility. According to the current situation you will witness decent listing gain in this IPO.

Ami Organics IPO Risk

• They are subject to environmental, health, and safety (EHS) rules, regulations, and standards which are becoming increasingly strict.
• Their company relies on their production plant, and they face significant risks as a result of their production process.
• They sell to more than twenty-five (25) countries and are exposed to the risks that come with conducting business globally, such as international market circumstances and regulatory concerns.
• Any product returns might have a negative impact on their business.
• They are exposed to foreign exchange risks, which might have a negative impact on their business.
• Delays or failures in their contract manufacturer’s implementation of their sales orders may have a negative impact on their business.

Other Threats

• The statistics in DRHP about their production plant’s actual manufacturing capacity is based on assumptions.
• A few their distributorship agreements forbid them from selling or marketing their products via other companies in a certain region.
• There is a chance that their information will be misplaced or abused by the company’s employees.
• Their failure to correctly predict demand for their products and manage inventories might be detrimental to their business.
• Their insurance coverage may not be enough to protect them against all significant risks, which might have a negative impact on their business.
• The company has made no preparation for the loss of value of some investments it has undertaken.

Team

Ami Organics Limited now employs highly skilled and motivated professionals who manage cutting-edge production lines backed by cutting-edge testing facilities and cutting-edge equipment.

They are expanded tremendously to be able to provide New Chemical Entity (NCE), Analytical, and Regulatory support, as well as large-scale pharma intermediate supply.

They have built themselves as a leading provider of unrivaled pharmaceutical products that adhere to GMP standards, and a chemical manufacturing facility to meet their customers’ needs. Their Fine and specialty chemicals are ISO certified.

R&D

Since their beginning and NCE, we’ve established and commercialised around 450 Pharma Intermediates for APIs in 17 key therapeutic categories.

They primary reliance on R&D in high-growth, high-margin therapeutic categories like anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anticoagulant for use throughout the worldwide pharmaceuticals industry.

Their Pharma Intermediates range, which is used to make APIs and NCEs, has grown from over 425 items on March 31, 2019 to over 450 products on March 31, 2021.

They feel that their commitment to research and development as well as continual process improvement has established them as a trusted partner to their clients.

Applications

As of the date of the DRHP, They have 8 process patent applications published in the Official Journal of the Patent Office of India (in regard of intermediates used in the production of Apixaban, Rivaroxaban, Nintedanib, Vortioxetine, Selexipag, Pimavanserin, Efinaconazole, and Eliglustat) and three additional awaiting process patent applications for which applications were made recently.

Sales & Marketing

They are confident in their ability to sell, promote, and distribute their products. They’ve established a sales section that’s focused on building and strengthening their relationships with experts and super specialists, and it’s linked with their main therapeutic categories.

Their marketing people promotes their products through a variety of sales and marketing techniques and programmes.

This including advertising material, speaker programmes, important pharmaceutical trade exhibitions like CPHI and CHEMSPEC, industry publications, advertising, and other media,

They have significant market research-based model that focuses on the development of innovative pharmaceutical intermedia.

Management

They are guided by a competent and seasoned Board of Directors and senior management staff, all of whom they feel have significant knowledge and awareness of the global generic pharmaceutical business environment as well as the skills and ambition to organically grow up their company.

Their executive directors have a combined pharmaceutical industry expertise of more than five decades, and nearly all of them have been with their business from its inception.

Nareshkumar Ramjibhai Patel, their Executive Chairman and Managing Director (who has also been our Promoter since the firm’s start), is a trained chemical engineer who has been with the organization since 2004.

Promoters

• Nareshkumar Ramjibhai Patel
• Chetankumar Chhaganlal Vaghasia
• Shital Nareshbhai Patel
• Parul Chetankumar Vaghasia

Promoter Holding

Pre Issue Share Holding	47.54%
Post Issue Share Holding