The issue kicked off for bidding on Tuesday, May 24 and would remain open till Thursday, May 26. The company is selling its shares in the range of Rs 610-642 apiece to raise Rs 808 crore through the primary route.
According to BSE data, investors made bids for 45,68,996 equity shares or 49 per cent, compared to the 93,56,193 equity shares offered for the subscription by the close of bidding on the second day.
The quota for retail bidders was subscribed 67 per cent, whereas the allocation employees fetched 93 per cent bids. The allocation for HNI’s was subscribed merely 16 per cent, whereas the QIB portion fetched 39 per cent bids.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. The remaining 35 per cent shares will be given to the retail bidders.
Incorporated in 2013, Aether Industries is a manufacturer of specialty chemicals and sole play in some of the categories. The company is the largest manufacturer of 4MEP, T2E, NODG and HEEP products in the world by volume.
Aether Industries has two manufacturing sites at Sachin in Surat, Gujarat. As of March 31, 2022, Its product portfolio has over 25 products sold to over 34 global companies in 18 countries and over 154 domestic companies.
Majority of brokerages are upbeat on the issue and have recommended subscribing to it following its strong financial, niche products and growth prospects over the year.
The company, with its differentiated portfolio of market-leading products, has focused on R&D to leverage its core competencies of chemistry and technology, said Hem Securities, with a subscribe rating on the issue.
“The company has long-standing relationships with a diversified customer base and with synergistic business models focused on large Scale Manufacturing, CRAMS and Contract Manufacturing,” it added. “On the financial front, the company has shown strong and consistent financial performance.”
In terms of valuations, the post-issue TTM P/E works out to 75.6x, which is reasonable considering its historical performance, said Angel One. “It has a diversified customer base, strong financial track record and higher ROE.”
Considering all the positive factors, the brokerage believes this valuation is at reasonable levels and has also recommended subscribing to the issue.
According to a circular on the BSE website, Aether Industries raised Rs 240.26 crore from anchor investors by allocating 37,42,495 equity shares to anchor investors at Rs 642 apiece.
A total of 25 funds have been allocated shares in the anchor round. This includes Goldman Sachs, Nomura,
Mutual Fund (MF), Aditya Birla Sun Life MF, Kotak MF, Axis MF, MF and Tata MF.
The company has cut the size of the fresh issue of equity shares to Rs 627 crore from Rs 757 crore planned earlier following the pre-IPO placement.
and Capital Company are the book running lead managers to the issue, whereas Link Intime India is the registrar.
