Aether Industries IPO GMP
by 5paisa Research Team
24 May 2022
Aether Industries IPO
Closed
RHP
IPO Details
- Open Date 24-May-22
- Close Date 26-May-22
- Lot Size 23
- IPO Size -
- IPO Price Range ₹ 610 to ₹642 / share
- Min Investment ₹ 14,030
- Listing Exchange NSE, BSE
- Basis of Allotment 31-May-22
- Refunds 01-Jun-22
- Credit to Demat Account 02-Jun-22
- Listing Date 03-Jun-22
Aether Industries IPO Subscription Status
| QIB | NII | Retail | Emp | TOTAL | |
|---|---|---|---|---|---|
| Day 1 | 0.36x | 0.05x | 0.42x | 0.54x | 0.33x |
| Day 2 | 0.39x | 0.16x | 0.67x | 0.93x | 0.49x |
| Day 3 | 17.57x | 2.52x | 1.14x | 1.06x | 6.26x |
IPO Synopsis
Aether Industries, a speciality chemicals company’s IPO opens on May 24, 2022, and closes on May 26, 2022. The fresh issue of equity shares has been reduced to Rs.627 crore from Rs.757 crore as planned following pre-IPO placement. The offer for sale of up to 28.2 lakh equity shares by the promoter still stands. The price band ranges between Rs.610 – Rs.643 per share. The lot size is fixed at 23 shares per lot. The shares will be allotted on May 31, 2022 and the IPO will be listed on June 3, 2022.
The book running lead managers to the issue are HDFC Bank Ltd and Kotak Mahindra Capital Company Ltd. The promoters are Ashwin Jayantilal Desai, Purnima Ashwin Desai, Rohan Ashwin Desai, Dr. Aman Ashvin Desai, AJD Family Trust, PAD Family Trust, RAD Family Trust, AAD Family Trust and AAD Family Trust.
Objectives of Aether Industries IPO
1. Rs.136 crore is being kept aside for funding the capital expenditure requirements for the Greenfield project
2. Rs.211.4 crore is to be used to repay or prepay debt availed by the company
3. Rs.165 crore will be used to fund the working capital expenditure requirements of the company
About Aether Industries
Incorporated in 2013, Aether Industries is a specialty chemicals manufacturer focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies. Their vision is to create a niche in the global chemical industry along with a creative approach towards chemistry, technology and systems that will in turn lead to sustainable growth.
Aether Industries is one of the fastest growing specialty chemical companies in the country, with a CAGR of 49.5% between FY19 and FY21. Their product portfolio consists of 22 products as of 30 September 2021. As of September 30, 2021, the company has a specialized R&D team of 141 scientists and engineers including 81 scientists and 60 chemical engineers. They have 2 manufacturing sites in Gujarat with the first one spanning around 3,500 sq mts and the second one spanning approximately 10,500 sq mts. The company has approved the construction of two more new facilities which is supposed to commence by the end of FY22. They have an enviable customer base which includes over 130 multinational, global, regional, and local companies. Their product portfolio was sold to over 30 global customers in 17 countries and to over 100 domestic customers, as of September 30, 2021
Aether Industries Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 453.7 | 303.8 | 203.3 |
| EBITDA | 116.13 | 73.73 | 49.60 |
| PAT | 71.12 | 39.95 | 23.33 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 452.94 | 300.5 | 206.67 |
| Share Capital | 11 | 8.5 | 8.5 |
| Total Borrowings | 208.2 | 170.5 | 126.13 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 23.20 | 17.70 | 22.74 |
| Net cash from / (used in) investing activities | -76.59 | -48.01 | -12.60 |
| Net cash flow from / (used in) financing activities | 55.36 | 32.62 | -9.95 |
| Net increase (decrease) in cash and cash equivalents | 1.96 | 2.30 | 0.20 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Aether Industries | 453.8 | 7.36 | 15.69 | NA | 40.79% |
| Clean Science and Technology Limited | 538.1 | 18.68 | 50.84 | 128.52 | 36.74% |
| Navin Fluorine International Limited | 1258.4 | 52.03 | 330.06 | 76.86 | 15.76% |
| Vinati Organics Limited | 980.1 | 26.2 | 150.16 | 73.17 | 17.45% |
| PI Industries Limited | 4701.9 | 49.92 | 352.13 | 58.19 | 13.82% |
| Fine Organic Industries Limited | 1150.3 | 39.25 | 238.55 | 95.6 |
16.45% |
IPO Key Points
-
Strengths
1. One of the strong suits of the company is their in-house R&D capabilities in chemistry and technology
2. They have a very diversified portfolio of market leading products
3. Aether Industries have maintained a long-standing relationship with their wide customer base
4. The 3 parts of their business model work together in perfect synergy -
Risks
1. The company is subject to certain risks consequent to their operations involving the manufacture, usage, and storage of various hazardous substances
2. The company gets a significant part of their revenue from major customers, and they do not have long term contracts with all of these customers so, if one or more of such customers choose not to source their requirements from Aether, or to terminate their long-term contracts, the business will be adversely affected
3. The company is reliant on certain products to derive the maximum amount of revenue
4. Exchange rate fluctuations may adversely affect the company’s operations as their sales from exports and a portion of the expenditures are denominated in foreign currencies
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the lot size and investment required for the Aether Industries IPO?
The Aether Industries Limited IPO lot size is 23 shares. A retail investor can apply for minimum of 1 lot (13 shares or Rs.14,766) and maximum up to 13 lots (299 shares or Rs.191,958).
What is the price band of Aether IPO?
The price band of Aether Industries IPO ranges between Rs.610 to Rs.643 per share
When does the Aether Industries IPO issue open and closes?
Aether Industries IPO opens on May 24, 2022 and closes on May 26, 2022
What is the size of Aether Industries IPO issue?
The Aether Industries IPO comprise a fresh issue of equity shares aggregating to Rs.627 crore and an offer-for-sale (OFS) of up to 28.2 lakh equity shares.
Who are the promoters/key personnels of Aether Industries IPO?
Aether Industries is promoted by Ashwin Jayantilal Desai, Purnima Ashwin Desai, Rohan Ashwin Desai, Dr. Aman Ashvin Desai, AJD Family Trust, PAD Family Trust, RAD Family Trust, AAD Family Trust and AAD Family Trust.
When is the allotment date of Aether Industries IPO?
The allotment date for Aether Industries IPO is May 31, 2022
When is the Aether Industries IPO listing date?
The Aether Industries IPO listing date is June 3, 2022
Who are the book runners for Aether Industries IPO?
HDFC Bank Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue.
What are the objectives of Aether Industries IPO?
The proceeds from the issue will be used in the following manner:
1. Rs.136 crore is being kept aside for funding the capital expenditure requirements for the Greenfield project
2. Rs.211.4 crore is to be used to repay or prepay debt availed by the company
3. Rs.165 crore will be used to fund the working capital expenditure requirements of the company
How to apply for the Aether Industries IPO?
To apply for the IPO, follow the steps given below
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
You will receive a mandate notification to block funds in your UPI app
Contact Details of Aether Industries IPO
Contact Information
Aether Industries Limited
Plot No. 8203,
GIDC, Sachin,
Surat- 394230
Phone: +91 261 660 3360
Email: compliance@aether.co.in
Website: https://aether.co.in/
Aether Industries IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: aether.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Aether Industries IPO Lead Manager
1. HDFC Bank Limited (Past IPO Performance)
2. Kotak Mahindra Capital Company Limited (Past IPO Performance)
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