Ami Organics IPO: 7 Interesting Things to Know Before Investing

Ami Organics

Last Updated: Dec 14, 2022 - 06:29 pm 54.9k Views
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Ami Organics IPO opens for subscription on 01-Sep and closes on 03-Sep. Ami Organics manufactures specialized intermediates for the pharma industry (APIs) and also for the agrochemicals sector. The IPO of Rs.570 crore will consist of fresh issue of Rs.200 crore and offer for sale (OFS) of Rs.370 crore. Price band has been fixed at Rs.603-Rs.610.

7 Interesting facts about Ami Organics IPO

1)    Ami Organics is one of the leading manufacturers of key APIs including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivoraxaban. It has a leadership position in each of these specialized intermediates.

2)    Since its inception in 2004, Ami Organics has developed and commercialized 450 pharma intermediates for APIs across 17 therapeutic areas. It already has 8 patent applications that have been accepted and 3 applications that are pending.

3)    Ami Organics supplies APIs and specialty chemicals to over 150 customers spread across 25 countries, including India. Some of its marquee clients include Laurus Labs, Cadila, Cipla, Fermion OY, Sintetici SPA, Medichem SA and Midas Pharma GMBH.

4)    Over the last two financial years, the revenues of Ami Organics grew 43%, EBITDA by 90.45% and net profits by 131%. This resulted in net margins of the company expanding from 9.77% in FY19 to 15.85% in FY21.

5)    Nearly 70% of the fresh issue portion of Rs.200 crore will be utilized for repayment of loans. The loan repayment is expected to be completed in FY22 itself, to improve solvency ratios. The balance 30% will be used for working capital.

6)    Ami Organics has already done a Rs.100 crore pre-IPO placement to key investors including Plutus Wealth Management, Malabar India Fund, IIFL Special Opportunities Fund and Malabar Value Fund.

7)    Based on the post-issue indicative market cap of Rs.2,220 crore, the IPO price discounts the latest year earnings at a P/E ratio of 41X. That is reasonable considering that the peer group typically trades at a P/E of 50X to 70X.

Also Read: Upcoming IPOs in September 2021

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