Aether Industries IPO: Here’s what GMP suggests ahead of listing on Friday

Shares of Aether Industries are available at a premium of Rs 15 in the grey market on Thursday, according to market watchers. The scrip is expected to list on bourses on Friday, June 3, 2022. The Rs 808 crore initial public offering (IPO) of the chemical manufacturer was opened for subscription from May 24-May 26. The company had fixed a price band of Rs 610-642 for the public offer.

Data available with BSE showed that the IPO received bids for 5,85,34,586 equity shares or 6.26 times compared to 93,56,193 equity shares offered for subscription by the company.

Aayush Agrawal, senior analyst, Swastika Investmart said, “Aether is one of the fastest-growing chemical manufacturers in India with a high focus on R&D, relying on differentiated chemistry and technological core competencies, and a robust product selection process.”

“The issue has received a good response from investors, especially on the institutional side; there is a lack of action in the grey market, so it is difficult to predict the exact listing price,” he said.

The issue was priced at a P/E of 72.30 times based on annualised FY22 numbers. “We believe that the company deserves this premium multiple due to its phenomenal growth prospects. Nevertheless, we expect a positive listing for the issue, and post listing, long-term investors may accumulate the stock,” Agrawal said.

The portion reserved for qualified institutional bidders and non-institutional investors got subscribed 17.57 times and 2.52 times, respectively. On the other hand, the quota for retail bidders and employees were subscribed 1.14 times and 1.06 times, respectively.

Brokerages like Hem Securities earlier gave a ‘Subscribe’ rating to the issue. However, Marwadi Financial Services said the company has a low and declining operating cash flow to EBITDA ratio which keeps them cautious from a long-term perspective.

Also Read: #HBDIlaiyaraaja: ‘Sadma’ composer rings in 79th birthday; Aishwarya Rajinikanth wishes the music maestro

Also Read: ‘Beyond grateful’: Meta COO Sheryl Sandberg steps down after 14 yrs