The SME initial public offering (IPO) of Ambey Laboratories opens for bidding on Thursday, July 4, 2024. The agrochemicals company is selling its shares in the range of Rs 65-68 apiece. The three-day issue can be subscribed until Monday, July 8, 2024.
Ambey Laboratories, incorporated in 1985, manufactures agrochemical products for crop protection. The company has been serving the agrochemical sector for almost four decades. The company manufactures and supplies 2,4-D base chemicals.
Ambey Labs is looking to raise a total of 44.68 crore via its initial stake sale, which includes a fresh share sale of 62.58 lakh equity shares amounting to Rs 42.55 crore, while existing shareholders and promoters of the company will offload 3.12 lakh shares amounting to Rs 2.12 crore.
Investors can apply for a minimum of 2,000 equity shares and its multiples thereafter. Each lot of the issue cost Rs 1.36 lakh to the investors. Retail bidders can apply for a single lot or only 2,000 equity shares while non-institutional investors need to apply for a minimum of 4,000 equity shares or two lots, costing Rs 2.72 lakh equity shares.
Ambey Laboratories has seen its grey market premium (GMP) rising as the issue opens for bidding. Last heard, the company was commanding a grey market premium of Rs 33-35 apiece, suggesting a listing pop of about 50 per cent for the investors. However, the premium in the unofficial market for the issue stood at Rs 27 a day earlier.
Ambey Labs raised Rs 12.73 crore from anchor investors as it allocated 18.68 lakh equity shares at Rs 68 apiece on Wednesday, July 3. Vikasa India EIF-1 Fund Incube Global Opportunities, Saint Capital Fund, J4S Venture Fund-1, SB Opportunities Fund and Nakshatra Stressed Assets Fund participated in the anchor book.
Ambey Labs' manufacturing facility in Behror, Rajasthan, which is certified by the Quality Research Organization and United Accreditation Foundation. The company currently produces the following products for its customer base, which includes large corporates like Aromatic Rasayan Private Limited, JR Jindal Infraprojects Private Limited, and SC Formulator.
Ambey Labs reported a net profit of Rs 6.08 crore with a revenue of Rs 100.44 crore for the nine months ended on January 31, 2023. The company's net profit stood at Rs 4.57 crore with a revenue coming in at Rs 107.43 crore for financial year 2022-23.
Ambey Labs has reserved 3,30,000 shares as market maker portion. The company has reserved 50 per cent of the net offer for the qualified institutional bidders, while non institutional investors will get remaining 15 per cent of the shares. Retail investors will get 35 per cent of the net offer.
Fast Track Finsec is the book running lead manager of the Ambey Laboratories IPO, while Link Intime India is the registrar for the issue. The market maker for Ambey Laboratories IPO is Nikunj Stock Brokers. Shares of the company are set to be listed on NSE Emerge platform likely on Thursday, July 11.