Specialty chemicals maker Aether Industries will launch its initial public offering (IPO) next week, with the public offering remaining open for subscription between May 24 and May 26. The size of the IPO is around Rs 808 crore and its price range has been pegged at Rs 610-642 per share. Here are important facts about the company and its IPO that investors should know before applying for the offering.
Aether Industries IPO: Date and Size
The Aether Industries IPO will be open for public subscription between May 24-26. The core investor portion will open for auction on May 23. The company plans to raise Rs 808.04 crore from its public offering. Of this amount, Rs 627 crore will be raised through new issuance, while the remaining Rs 181.04 crore is expected through an offer to sell (SFO). The tentative date for announcing the allocation of shares is May 31. The likely listing date for the shares is June 3.
Aether Industries IPO: Lot Size
An investor can bid for a minimum of one lot and a maximum of 13 lots. A lot will consist of 23 shares of Aether Industries. In terms of rupee value, an investor can bid for a minimum amount of Rs 14,766 for one lot, while the maximum bid can be made for Rs 1,91,958 for 13 lots.
Aether Industries IPO: Quotas
The initial public offering will have a 35% reservation for retail investors, while qualified institutional buyers (QIBs) will be able to participate in 50% of the total issue size. Non-institutional investors will be able to participate in the remaining 15% of the IPO size.
Aether Industries IPO: GMP
Shares of Aether Industries have made their gray market debut, according to market watchers. They said Aether Industries shares were available at a premium of Rs 20 (on the upper band of Rs 642) in the gray market on Saturday. This means that gray market shares are trading at Rs 662 each. It indicates that the listing price of the company’s shares should be higher than the issue price. The premium fluctuates based on sentiment in the markets.
About Aether Industries
Aether Industries is a specialty chemicals manufacturer in India that focuses on the production of advanced intermediates and specialty chemicals involving complex and differentiated core competencies in chemistry and technology. “Our company started in 2013 with a vision to create a niche in the global chemical industry with a creative approach to chemistry, technology and systems that would lead to sustainable growth,” according to the misleading prospectus (RHP).
He said it is one of the fastest growing specialty chemicals companies in India with a CAGR (compound annual growth rate) of almost 49.5% between fiscal 2019 and 2021.
“From CY 2020 to CY2025, the global chemicals market is expected to grow at a CAGR of 6.2% and the Indian specialty chemicals market at a CAGR of 11.2%, according to Frost & Sullivan. The following table shows the size in CY2020 of the Global Chemicals Market, Global Specialty Chemicals Market and India Specialty Chemicals Market and the expected growth of these markets for CY 2025,” according to the RHP.
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