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Shares of Aether Industries made a positive debut on the bourses on Friday, listing at 10 per cent premium against the issue price of ₹642.
Aether Industries listed at ₹706.15 on the BSE, up ₹64.15 or 9.99 per cent from its issue price. Post listing, it was locked in the 10 per cent upper circuit through the day. It closed at a high of ₹776.75, up ₹134.75 or ₹20.99 per cent from the issue price. It recorded an intraday low of ₹699.85.
It listed at ₹704 on the NSE, up ₹62.00 or 9.66 per cent from the IPO price. The ₹808-crore IPO of the company was subscribed 6.26 times. It closed at ₹774.40.
The company manufactures speciality chemicals focused on producing advanced intermediates involving complex and differentiated chemistry and technology core competencies.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “The company’s good listing can be attributed to a recovery in market sentiments, outstanding growth prospects of the company, and a good response from the investors. The company is one of the fastest-growing specialty chemical companies in India, having a high focus on R&D, relying on differentiated chemistry & technological core competencies, and a robust product selection process.”
“The Indian chemical industry is witnessing a structural change due to the shift of manufacturing activities from China to India and the focus on green chemistry. The issue was priced at a P/E of 72.30 based on annualised FY22 numbers. However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects,” added Meena.
The IPO witnessed a strong response with the quota set aside for QIBs and HNIs being subscribed 17.57 times and 2.5 times, respectively. While the retail portion was subscribed 1.14 times, the portion reserved for employees was subscribed 1.06 times.
Anchor investors
Ahead of IPO, the company had raised a little over ₹240 crore from anchor investors. The company had allocated a total of 37,42,495 equity shares to anchor investors at ₹642 apiece.
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