AMI Organics IPO Subscribed 3.90 Times On Day 2
Investor interest in Ami Organics Ltd.’s Rs 570-crore initial public offering further picked up on the second day of subscription.
The IPO was subscribed 3.90 times on Thursday, led by demand from retail investors.
The specialty chemical maker is seeking a market value of Rs 1,934.8 crore at the upper end of the price band of Rs 603-610 apiece. The maiden float, according to Ami Organics’ red herring prospectus, comprises a fresh issue of Rs 200 crore and offer-for-sale of Rs 370 crore by promoter Parul Chetankumar Vagasia and other existing shareholders.
The company has made a pre-IPO preferential issue of Rs 101 crore to private equity players Platus Wealth Management, IIFL Opportunities Fund, and Malabar India Fund at Rs 603 apiece. The promoter shareholding will fall from 47.2% to 41.2% after the IPO, while the rest will be held by the public.
It plans to use Rs 140 crore to reduce debt and Rs 90 crore to augment working capital requirements. The proceeds from the offer-for-sale won’t come to the company.
Subscription Details: Day 2
The IPO was subscribed 3.90 times as of 5:00 p.m. on Sept. 2
Institutional investors: 1.43 times
Non-institutional investors: 1.51 times
Retail investors: 6.32 times
Research Reports On Ami Organics IPO: