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NEW DELHI: Surat-based Ami Organics is all set to hit the primary market with its Rs 570 crore IPO next week. The IPO will be a mix of a fresh issue and an offer for sale (OFS). The net proceeds from the fresh issue will be used by the company to repay certain debts and working capital, and for general corporate purposes. Parul Chetankumar Vaghasia, Girishkumar Limbabhai Chovatia, Kiranben Girishbhai Chovatia, Aruna Jayantkumar Pandya, Atulkumar Shah, among others, would be the selling shareholders in the OFS.

Here are key things you should know about the Rs 570-crore issue:

  1. When will the Ami Organics IPO open for subscription?
    Ami Organics IPO will open for subscription on Wednesday, September 1, and will close on Friday, September 3.
  2. What is the price band for Ami Organics IPO?
    The price band for Ami Organics IPO has been fixed at Rs 603-610.
  3. What is the lot size for Ami Organics IPO?
    Investors can subscribe to the Ami Organics IPO by betting for a lot of 24 shares or in multiples thereof.
  4. What is the issue size of Ami Organics IPO?
    The issue comprises a fresh issue worth Rs 200 crore and an offer for sale of up to 6,059,600 shares. At the upper end of the price band, the issue size stands at Rs 569.64 crore.
  5. Has Ami Organics reduced its issue size?
    Yes. The company has reduced its fresh issue size to Rs 200 crore from Rs 300 crore after fundraising of Rs 100 crore in a pre-IPO placement.
  6. What is the quota reserved for retail investors in the Ami Organics IPO?
    The quota for retail investors in Ami Organics IPO is fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent, while for NIIs, the quota is reserved at 15 per cent.
  7. When will the basis of allotment be finalised for Ami Organics IPO?
    The finalisation of the basis of allotment is likely by September 8 and the initialisation of refunds is likely to happen by September 9. Meanwhile, credit of shares in the demat account will likely be by September 13
  8. On what date will Ami Organics IPO list?
    Ami Organics will make its market debut on September 14.
  9. Where could we check Ami Organics IPO allotment status?
    Those who would bid for the issue can check the subscription status on the online portal of Link Intime India Private Ltd, the registrar to the IPO.
  10. Who are the leading book managers to the issue?
    Intensive Financial Services, Ambit and Axis Capital have been appointed as book-running lead managers (BRLMs) of the issue. Link Intime India is the registrar for the issue.
  11. What does Ami Organics do?
    The company manufactures specialty chemicals that are used towards the development and manufacturing of advanced pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs) and New Chemical Entities (NCE). It has developed and commercialised over 450 pharma intermediates for APIs across 17 key therapeutic areas. The contribution of pharma intermediates business was 88.41 per cent of the total sales in FY2020-21.
  12. What is the asking valuation for Ami Organics IPO?
    At the upper end of the price band, the issue would be available at 35.59 times FY21 EPS on a diluted basis. This is against the average industry P/E of 48.91.
  13. How has Ami Organics performed last year?
    Ami Organics said its revenue jumped 41 per cent to Rs 342 crore in FY21. Profit after tax (PAT) for the year grew 96 per cent to Rs 54 crore.
  14. What did analysts say on Ami Organics IPO?
    While not many brokerages are out with their reports yet, Yash Gupta, Equity Research Analyst at Angel Broking said his brokerage has ‘neutral’ view on Ami Organics IPO.

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