The ₹808-crore initial public offering of Aether Industries was subscribed 0.33 times or 33 per cent at the end of Day 1 of issue opening on Tuesday. The IPO closes for subscription on Thursday.
The firm has fixed a price band of ₹610-642 per share for its issue, while the ticket size is 23 shares. The IPO includes a fresh issue of ₹627 crore and an offer for sale of up to 28.2 lakh shares by promoter Purnima Ashwin Desai.
While the retail portion was subscribed 0.42 times, the quota set aside for QIBs and HNIs received bids for 0.36 times and 0.05 times respectively. The portion reserved for employees was subscribed 0.54 times at the end of first day of IPO.
While 50 per cent of the portion has been reserved for Qualified Institutional Buyers, 15 per cent is for non-institutional investors, and the remaining 35 per cent for Retail Individual Investors (RIIs).
₹240 cr from anchor investors
Ahead of IPO on Monday, the company has raised a little over ₹240 crore from anchor investors ahead of its initial share-sale, which opens for public subscription on Tuesday.
The company has allocated a total of 37,42,495 equity shares to anchor investors at ₹642 apiece.
Twenty five anchor investors including Goldman Sachs, Nomura, SBI Mutual Fund (MF), Aditya Birla Sun Life MF, Kotak MF, Axis MF, IDFC MF and Tata MF, have been allocated shares in the anchor book.
Utility of funds
Aether will use ₹163 crore from IPO proceeds to fund capital expenditure requirements for its proposed greenfield project. While ₹137.9 crore will also be utilised for prepayment of all or a portion of certain outstanding borrowings availed by the company, ₹165 crore will be allotted to fund working capital requirements and general corporate purposes.
Aether Industries is a speciality chemical manufacturer in India focussed on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.
The company has two sites at Sachin in Surat (Gujarat). The initial manufacturing facility is a 3,500-square-metres space that houses R&D, analytical sciences laboratories, a pilot plant, a CRAMS facility, and a hydrogenation facility. The second facility — a large-scale manufacturing unit — is a 10,500-square metres space and houses 16 production streams. It has an installed capacity of 6,096 tonne per year.