Aether Industries IPO Details | IPO 2022

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Aether Industries Limited was established in 2013; it manufactures specialty chemicals and API’s. The company produces various chemicals such as 4MEP, MMBC, T2E, OTBN, and Bifenthrin Alcohol. The company has three major business verticals. Let’s delve deep into understanding some key elements about the Aether Industries IPO.

  • Large-scale manufacturing in API and specialty chemicals.
  • CRAMS is also known as contract research and manufacturing services 
  • Contract manufacturing.

The company has two manufacturing plants. It is located in Surat, Gujarat. The company can carry out manufacturing in 16 production streams. The capacity of the plants is 6,096 MT per year. Aether Industries Limited has a diversified product portfolio of 25 products. It has a market base in 18 countries. Aether Industries Limited also has a synergy with 34 global companies. The company holds a creative approach. It has formulated a mix of chemistry, technology, and systems. It has helped the business growth of the company.

OBJECTS OF THE AETHER INDUSTRIES IPO ISSUE:

  • Prepayment of all the loans of the company. It will be done on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  
  • Aether Industries Limited also has an objective to fund its CAPEX Plan. The company wants to expand its existing manufacturing unit capacity. It also intends to develop new facilities. Aether Industries Limited intends to carry out a technology upgradation.

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BASIS OF THE AETHER INDUSTRIES IPO OFFER:

The basis of the IPO offer is as follows:

  • Aether Industries Limited is a market leader company in its product segment.
  • The company has a huge emphasis on R&D., and It has helped it capitalize on its technology and chemical manufacturing.
  • Aether Industries Limited has a long-standing relationship with consumers. It has a differentiated client base.
  • Aether Industries Limited has a Large-scale manufacturing capacity. It also holds CRAMS and contract manufacturing.
  • Aether Industries Limited strictly follows guidelines for its QEHS operations. It also helped the company’s business operation to attain better profitability.
  • The company has a solid financial performance. 
  • Aether Industries Limited has a team of experts in all segments. The company also has a strong promoter.

AETHER INDUSTRIES IPO DETAILS:

Aether Industries Limited is a company with its headquarters in Surat. The company recently got approval from SEBI. It earlier filed its DRHP for approval. The company is coming up with its IPO offer. The IPO offer of the company is Rs. 808.04 crores. It is a mix of an OFS offer of Rs. 181.04 crores. It corresponds to 2,820,000 equity shares of the company. It also contains an issue of fresh equity worth Rs. 627.00 crores by the company.

The company stated that it would utilize funds as below:

Repayment and pre-payment of the borrowings of the companyRs. 137.90 crores
Working capitalRs. 165.00 crores
CAPEX PlanRs. 163.00 crores
General corporate purposeRemaining funds

The company fixed the price band to Rs. 610.00 – Rs. 642.00 per equity share. Post allotment, the company’s shares will be listed on BSE and NSE. The IPO issue offer constitutes 10.11 % of the company’s post-issue fully paid-up equity capital base. The company also completed its Pre – IPO allotment round. In it, the company allotted equity shares of the company.

It was allotted at Rs. 610.00 per share. It was done to raise Rs. 130.00 crores funding. It reduced the IPO fresh equity offer to Rs. 627.00 crores. Post IPO offer, the fully paid-up equity capital of the company will increase. It will increase from Rs. 114.72 crores to Rs. 124.48 crores. On the upper band of IPO, the company’s market share will be Rs. 7991.79 crores.               

IPO Opening DateMay 24, 2022
IPO Closing DateMay 26, 2022
Issue TypeBook Building Type Issue IPO
Face ValueRs.10 per Equity share
IPO Price BandRs. 610 – Rs. 642 per equity share
Market LotOne lot of 350 equity shares of the company
Minimum Order QuantityOne lot corresponding to 23 equity shares of the company
Minimum Order PriceRs. 14,766
Maximum Order Quantity13 lots corresponding to 299 equity shares of the company
Maximum Order PriceRs. 191,958
Listing AtBSE, NSE
Issue Size12,586,352 Equity shares of the company, which corresponds to Rs. 808.04 crores
Fresh Issue9,766,352 Equity shares of the company, which corresponds to Rs. 627.00 crores
Offer for Sale2,820,000 Equity shares of the company, which corresponds to Rs. 181.04 Crores
Price Band Announcement:May 19, 2022
Anchor Investors Allotment:May 23, 2022
Basis of Allotment DateMay 31, 2022
Initiation of RefundsJune 01, 2022
The Credit of Shares to Demat AccountJune 02, 2022
IPO Listing DateJune 03, 2022
Basis of the Allotment Type% Of IPO Offer
Qualified Institutional Buyer50
Non-Institutional Investor15
Retail35

Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.

STRENGTHS AND OPPORTUNITIES OF AETHER INDUSTRIES IPO:

  • Aether Industries Limited has an established market position. The company has maintained a strong relationship with global and domestic clients. Some clients are Neogen Chemicals, Moehs Catalana, Divi’s Lab, and Aarti Drugs.
  • The company is the global leader in the manufacturing of 4MEP. It is on both terms, volume and production. It is also the only manufacturer of 4MEP in India. The company is also the largest manufacturer of NODG and T2E globally. 
  • Aether Industries Limited has a diversified product portfolio. The company holds a leadership position in sustainable chemistry. 
  • The company follows its core principle of manufacturing design engineering. It has made the company turned into a reputed firm.
  • Aether Industries limited has a strong global as well as domestic presence.
  • The company has a great In-house R&D team. It has helped the company to formulate and manufacture chemicals and API’s.
  • Aether Industries Limited has a diversified product portfolio. The products of the company have been used in the diversified sector. It includes pharmaceutical, electronic chemical, material science, fine/specialty chemical, and agrochemical industry. It has led to large revenue growth for the company.
  • Aether Industries Limited is the only large-scale manufacturer of some of the products in India.
  • Aether Industries Limited has a comfortable financial risk profile. The company has recorded solid financial performance in the past. The company is a steady and healthy accretion to reserves. It has a comfortable capital structure.
  • The company has healthy profitability. The debt-protection matrix of the company is comfortable. The company will take a CAPEX of around 90-100 crore in FY2022 and FY2023. It signifies the strong demand and outlook of the company.
  • Aether Industries will get benefit from the PLI scheme. It will also benefit from the growth projection of the specialty chemical sector.

WEAKNESSES AND THREATS OF AETHER INDUSTRIES IPO:

  • Aether Industries needs to follow strict quality and operational requirements. The company is under regular audits and inspections.
  • The specialty chemical sector has very stiff competition. The company needs to follow and execute its plans properly. Any wrong decision and wrong operation execution can lead to a significant loss to the company.
  • Aether Industries is vulnerable to the prices of raw materials. It is also vulnerable to supply chain demand and network and shipping costs. It is vulnerable to forex rate fluctuation.
  • The company relies heavily on its In-house R&D. Any inefficiency in it can significantly impact its financial matrix.
  • As the company has no long-term contact with any customers, any termination or dis-attachment from the company will affect it adversely.
  • The dependency to earn revenue is limited to certain products.
  • Aether Industries has a huge working capital requirementIt has led the company to maintain a high inventory.
  • The major threat to the company is the susceptibility to their project implementation. It can be a serious issue if there are any stabilization risks.
  • The company doesn’t have a long-term contract with its key clients.
  • Any Non-compliance with regulatory requirements can lead to serious harm to the company’s reputation.
  • The company is currently facing a trial under legal procedures. It is on the promoters, board of directors, and their group company. 

FINANCIAL TRENDS OF AETHER INDUSTRIES IPO:

ParticularsFor the year ending with the amount as in Rs. in Million
31 Dec 2131 Dec 2031 Mar 2131 Mar 2031 Mar 19
Total Assets7,095.614,000.954,529.443,004.672,066.75
Total Revenue4,493.153,373.414,537.893,037.812,032.77
Profit After Tax829.06482.54711.19399.56233.35
PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)70.4246.6850.87
   CEPS (Rs)7.395.0845.62
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)172.6291.4588.77
   Tax Rate (%)24.1929.29-17.43
   Core EBITDA Margin (%)24.9123.774.80
   EBIT Margin (%)23.3521.826.98
   Pre-Tax Margin (%)20.8418.7211.31
   PAT Margin (%)15.8013.2419.34
   Cash Profit Margin (%)18.2415.8415.19
   ROA (%)18.8815.7619.81
   ROE (%)56.3168.40-17.69
   ROCE (%)33.3031.874.49
   Asset Turnover (x)1.201.190.39
   Sales/Fixed Asset (x)2.262.241.00
   Working Capital/Sales (x)6.2910.09-37.67
   Fixed Capital/Sales (x)0.440.45-0.99
   Receivable days69.4067.203.27
   Inventory Days63.5067.57-6.02
   Payable days73.1676.21-4.00
   EV/Net Sales (x)0.470.58-18.65
   EV/Core EBITDA (x)1.832.38-23.02
   EV/EBIT (x)2.022.66-24.01
   EV/CE (x)0.470.58-19.57
   Net Sales Growth (%)49.0450.02-1.95
   Core EBITDA Growth (%)57.5148.6418.23
   EBIT Growth (%)59.5652.5213.40
   PAT Growth (%)77.9971.239.50
   EPS Growth (%)50.8771.23-28.58
   Total Debt/Equity (x)1.192.18-45.17
   Current Ratio (x)1.441.2515.02
   Quick Ratio (x)0.920.6442.80
   Interest Cover (x)9.297.0332.21

COMPARISON WITH PEERS OF AETHER INDUSTRIES IPO:

Name of the CompanyEPS of the company as in Rs.PE ratioPAT of the company as in Rs. in croresMarket cap of the company as in Rs. in crores
Aether Industries Limited9721097704
Clean Science and Technology Limited27.5462.229218242
Navin Fluorine International Limited53.097126318676
Vinati Organics Limited33.7362.234721561
PI Industries Limited55.6247.584440058

AETHER INDUSTRIES LIMITED PROMOTERS:

The promoters of the company are as follows:

  • Ashwin Jayantilal Desai
  • Purnima Ashwin Desai
  • Rohan Ashwin Desai
  • Dr. Aman Ashvin Desai
  • ADJ Family Trust
  • PAD Family Trust
  • RAD Family Trust
  • AAD Family Trust
  • AAD Business Trust
Pre-Issue Share Holding96.96%
Post Issue Share Holding87.09%

COMPANY ADDRESS:

Aether Industries Limited
Plot No. 8203, GIDC, Sachin,
Surat – 394230, Gujarat
Tel: +91 261 660 3360
Contact Person: Chitrarth Rajan Parghi
Company Secretary and Compliance Officer
E-mail: compliance@aether.co.in
Website: www.aether.co.in

AETHER INDUSTRIES IPO REGISTRAR:

Link Intime India Private Limited
C 101, 1st Floor, 247 Park
L.B.S. Marg,
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Telephone: +91 22 4918 6200
E-mail: aether.ipo@linkintime.co.in
Website: www.linkintime.co.in

AETHER INDUSTRIES IPO LEAD MANAGERS

  • HDFC Bank Limited
  • Kotak Mahindra Capital Company Limited

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