Speciality chemical co Aether Industries will hit the market at a time when Indian chemical companies like Laxmi Organics, Rossari Biotech, Clean Science Technologies, Tatva Chintan and Ami Organics are giving returns ranging from 40-200 percent of their issue prices as supply disruptions in China turn the world towards India.
Aether Industries, a Surat-headquartered firm that deals in speciality chemicals, has submitted a preliminary prospectus with the Securities and Exchange Board of India (SEBI) to secure Rs 1,000 crore via an Initial Public Offering (IPO).
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As per the Draft Red Herring Prospectus (DRHP), the public offering includes a new issue of equity shares worth Rs 757 crore and an offer-for-sale of as much as 2,751,000 equity shares.
The company is expected to raise Rs 1,000 crore through its IPO, according to market sources. In a pre-IPO round, the Surat-based company also secured over Rs 100 crore from White Oak Capital and IIFL.
Aether Industries specialises in state-of-the-art intermediates and speciality chemicals that demand complex and distinctive chemistry and technology core competencies.
In 2013, it established an R&D unit, and in 2017 it started commercial production. It serves a range of industries including pharmaceutical, agrochemical, material science, electronic chemical, high-resolution photography, and oil and gas.
According to the people aware of the development, Kotak Mahindra Capital Company Ltd and HDFC Bank Ltd have been selected as merchant banks to advise the company on the public offering.
The company currently has a gross production capacity of over 4,000 MT.
The revenue of Aether Industries swelled by 75 percent to Rs 450.23 crore in FY21, rising from Rs 301.87 crore in FY20, and its net profit surged by 75 percent to Rs 71 crore, rising from Rs 39.6 crore in FY20.
The pandemic has disrupted the global chemical industry as businesses around the world are seeking alternative supply solutions in order to reduce their reliance on China and develop an alternative supply chain.
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As a result, numerous Indian chemical companies have witnessed order influxes from global chemical companies in order to meet China's supply disruptions.
This has resulted in the shares of recently listed chemical companies like Laxmi Organics, Rossari Biotech, Clean Science Technologies, Tatva Chintan and Ami Organics offering returns ranging from 40-200 percent from their issue prices.
(Edited by : Shoma Bhattacharjee)
First Published: IST