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Aether Industries, a speciality chemical manufacturer, will launch its initial public offering (IPO) for subscription on May 24. The IPO subscription will end on May 26, 2022. The price band is fixed at Rs 610-642 per equity share.
The issue size is Rs 808.04 crore and the issue consists of fresh equity shares of Rs 627 crore and offer for sale (OFS) of up to 28.2 lakh equity shares by existing shareholders and promoter aggregating to Rs 181.04 crore.
Company Summary
Aether Industries Limited is a speciality chemical manufacturer in India producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry as well as technology core competencies.
The company in its red herring prospectus said that its products have applications across a wide spectrum of industries such as pharmaceuticals, agrochemicals, material science, coatings, high performance photography, additives and oil & gas industries. As of March 31, 2022, their product portfolio comprised of over 25 products which were marketed to 34 global customers in 18 countries and to 154 domestic customers.
The company has three business models under which they operate namely large scale manufacturing of its own intermediates and speciality chemicals, contract research and manufacturing services, and contract manufacturing.
The company has two manufacturing facilities at Sachin in Surat, Gujarat. Its Facility 1 is about 3,500 square meters facility for their R&D activities, analytical sciences, pilot plant, contract research and manufacturing services (CRAMS) facility and hydrogenation facility. Its Facility 2 is approximately 10,500 square meter facility and acts as a large scale production facility.
As of March 31, 2022, Aether had a specialized research & development team of 164 scientists and engineers including 92 scientists (with PhDs or Master of Science degrees) and 72 chemical engineers.
Aether’s top 20 customers contributed 72.93% to the gross revenue from operations in Apr-Dec of FY22 and 73.50% in FY21. India contributed the maximum to its sales at about 57%, followed by Europe (32% approx.) and North America (6% approx.).
Company Strengths
- Differentiated portfolio comprising of market-leading products.
- Well-established in-house R&D capabilities to leverage their core competencies of chemistry and technology.
- Long standing relationships with a diversified client base.
- Synergistic business models focused on large scale manufacturing, contract research and manufacturing services, and contract manufacturing.
- Focus on Quality, Environment, Health and Safety (QEHS).
- Strong and consistent financial performance.
- Experienced promoters and senior management with extensive domain knowledge.
Company Financials
Particulars | 9MFY22 | FY21 | FY20 | FY19 |
Total Assets | 7,095.61 | 4,529.44 | 3,004.67 | 2,066.75 |
Total Revenue | 4,493.15 | 4,537.89 | 3,037.81 | 2,032.77 |
Profit After Tax | 829.06 | 711.19 | 399.56 | 233.35 |
EBITDA | 1,259.95 | 1,121.59 | 717.56 | 475.07 |
EBITDA Margin | 28.47% | 24.93% | 23.78% | 23.61% |
ROCE | 21.72% | 28.50% | 26.07% | 25.16% |
*All numbers are INR in millions except for percentage
Purpose of the IPO
The net proceeds will be utilised by the company in following ways,
- Funding of capital expenditure requirements for the proposed greenfield project totalling up to Rs 1,630 million.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company aggregating to Rs 1,379 million.
- Funding the company’s working capital requirements up to Rs 1,650 crore.
- Other general corporate purposes.
- Aether expects to receive the benefits of listing of the equity shares on the stock exchanges and enhance visibility as well as brand image.
Company 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 and AAD Business Trust are the promoters of the company.
IPO Details
IPO Opening Date | 24-May-22 |
IPO Closing Date | 26-May-22 |
IPO Face Value | Rs 10 per equity share |
IPO Price (Price Band) | Rs 610 to Rs 642 per share |
IPO Lot Size | 23 Shares |
Issue Size | Rs 808.04 crore |
Fresh Issue | Shares worth up to Rs 627 crore |
Offer for Sale | 2,820,000 shares aggregating up to Rs 181.04 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Minimum | 1 | 23 | Rs 14,766 |
Maximum | 13 | 299 | Rs 191,958 |
IPO Allotment and Listing Dates
Event | Date |
Shares Allotment Date | 31-May-22 |
Initiation of Refunds | 01-Jun-22 |
Credit of Shares to Demat | 02-Jun-22 |
IPO Listing Date | 03-Jun-22 |
You can check your allotment in BSE or Link Intime