Aether raises Rs 240.26 cr from 13 anchor investors

Aether raises Rs 240.26 cr from 13 anchor investors

Allocats 37,42,495 shares at Rs. 642 apice

Aether  Industries IPO will fetch Rs 808.04 crore at the upper end of the price band.

MUMBAI, May 23 (The CONNECT) - Surat-based Aether Industries Limited has garnered Rs 240.326crore from anchor investors ahead of its initial share sale that opens for public subscription on Tuesday. The company informed the bourses that it has allocated 37,42,495 shares at Rs. 642 per share on Monday, May 23, 2022 to anchor investors.

SBI Mutual Fund, Ashoka India Opportunities Fund (White Oak), The Nomura Trust, Goldman Sachs Funds are among the 7 DIIs and 6 FPIs investors that participated in the anchor book.

In addition, shares have been allocated to domestic funds like Axis Mutual Fund, Aditya Birla Mutual Fund, Kotak Mutual Fund, IDFC Mutual Fund, Tata Mutual Fund, Max Life Insurance in the anchor book along with FPI like IIFL UCAL, Allianz Global Investor, Amundi mutual funds.

Out of the total allocation of 37,42,495 equity shares to the anchor investors 18,22,313 equity shares were allocated to 6 mutual funds amounting to ~Rs 117 crore ~49% of the Total Anchor Book Size.

According to a May 20 announcement from the Ministry of Chemicals and Fertilizers, a seven-member joint task group led by science and technology secretary Srivari Chandrashekhar has been formed to minimise India's reliance on chemical imports and increase its self-sufficiency.

Aether Industries started with a research and development (R&D) unit in 2013 and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, coatings, high performance photography, additives and oil & gas segments of the chemicals industry.

As of March 31, 2022, the Company's product portfolio comprised of over 25 products. The Surat-based company is the only manufacturer of 4MEP, MMBC, T2E, OTBN, NODG, DVL and Bifenthrin Alcohol in India and the largest manufacturer of 4MEP, T2E, NODG and HEEP in the world, by volumes; 4MEP, T2E, MMBC, NODG, BFA, OTBN, NMDG and DVL products were 100% imported into India from China four years ago and now Aether is selling these products in China.

The Company has two sites at Sachin in Surat (Gujarat, India). The initial manufacturing facility is a 3,500-square-metres space that houses R&D, analytical sciences laboratories, a pilot plant, a CRAMS facility, and a hydrogenation facility. The Second Manufacturing Facility is a large-scale manufacturing facility is a 10,500 square metres space and houses 16 production streams. It has an installed capacity of 6,096 MT per year and is divided into three buildings (and one SRP Plant Stream).

For the nine-months ended December 31, 2021, Aether Industries revenue from operations stood at Rs 442.54 crore and net profit at Rs 82.91 crore. The Company's revenue from operations grew 49.04% to Rs. 449.82 crores in Fiscal 2021 from Rs. 301.81 crore in Fiscal 2020, while its net profit climbed 77.98% to Rs 71.12 crore in Fiscal 2021 from Rs. 39.96 crores in Fiscal 2020.

HDFC Bank Limited and Kotak Mahindra Capital Company Limited are the book running lead manager to the issue and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

IPO Details

The IPO consists of a fresh issue of equity shares aggregating to ₹ 627 crore and an offer for sale (OFS) of up to 2,820,000 equity shares. The proceeds from its fresh issuance worth Rs 163 crore will be utilised for funding capital expenditure requirements for the proposed greenfield project in Surat, Gujarat, Rs 137.9 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings; and Rs 165 crore for funding working capital requirements; and general corporate purposes.

The Company is proposing to open its initial public offering of Equity Shares on Tuesday, May 24, 2022 and closes on Thursday, May 26, 2022. The price band for the Offer has been determined at Rs 610 – Rs 642 per equity share.

The IPO will fetch Rs 808.04 crore at the upper end of the price band.

Investors can bid for a minimum of 23 equity shares and in multiples of 23 equity shares thereafter.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

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