The speciality chemicals company Ami Organics is all set to open its three-day initial public offering (IPO) on September 1. The public offering will be fixed at a price band of Rs 603-610 per share for its initial share sale of Rs 570 crore.
According to a recent statement issued by the Surat-based chemical company in a virtual press conference, Ami Organics will open its IPO on September 1, Wednesday and it will be concluded on September 3, Friday. It expects to raise around Rs 569.63 crore at the upper end of the price band.
The IPO comprises a fresh issue of equity shares worth Rs 200 crore and an offer for sale (OFS) of up to 60,59,600 equity shares by its existing shareholders. These existing shareholders and promoters include Girishkumar Limbabhai Chovatia, Kiranben Girishbhai Chovatia, Parul Chetankumar Vaghasia, Aruna Jayantkumar Pandya, Atulkumar Shah, and many more.
Talking about its investors, half of the issue size has been reserved for qualified institutional investors. Further, out of the rest, 35% will be allotted for retail investors and the remaining 15% for non-institutional investors.
The company in its IPO prospectus stated,
"An OFS consist of upto 7 lakh shares by Parul Chetankumar Vaghasia, upto 1.5 lakhs shares by Girishkumar Limbabhai Chovatia, upto 3.05 million shares by Kiranben Girishbhai Chovatia, upto 1.74 lakh shares by Aruna Jayantkumar Pandya."
Ami Organics will be using the proceeds from the IPO for the repayment of the financial loans borrowed by the company and will serve several other requirements including funding and other corporate purposes.
Ami Organics is one of the leading manufacturers of speciality chemicals based in Surat. It is basically focused on the development and manufacturing of Pharma intermediates. The lead managers to their public issues are Axis Capital Limited, Ambit Private Limited and Intensive Fiscal Services Private Limited and the equity shares of the company will be listed on BSE and NSE.
The company has already raised Rs 100 crore in the pre-IPO placement due to which the fresh issue size has been reduced from 300 crore to 200 crore.
(Image Credits: Shutterstock)