Ami Organics IPO – Review, Allotment, Subscription, GMP Price, Date & more

Ami Organics is one of the leading pharmaceutical companies and manufacturers, that was first formed as partnered firm. Ami Organics IPO consists of 3,500,000 Equity shares of Rs.10 each.

Let’s have a detailed review of the company and analytics of the Ami Organics IPO release date, IPO offer price, subscription, Ami Organics IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Ami Organics IPO Review & Ratings

Ami Organics IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking 6.3/10
Company Background6.1/10
Company Reputation6.4/10
Competitive Edge6.4/10
Financial Statements6.5/10
Popularity Index6.2/10
Promoters Reputation6.3/10
Retail Appetite 6.2/10
Top Brokers Review6.3/10
Overall Ratings 6.3/10
Star Ratings★★★☆☆

Summary of Ami Organics  IPO

Ami Organics  IPOAmi Organics was originally formed as a partnership firm under the Partnership Act, 1932 in the name of “Ami Organics” pursuant to a deed of partnership dated January 3, 2004 executed among their Promoters, along with others, as partners. As per the National Account Statistics published by the Ministry of Statistics and Programme Implementation (MoSPI), value added by Pharmaceutical sector increased at a 9% CAGR between fiscal 2012 and fiscal 2016. It reached from Rs 0.9 trillion to Rs 1.3 trillion during the same period.

The share of value added by pharmaceutical sector in manufacturing GVA remained at 6-7% during the same period, while the share of value added by pharmaceutical sector in total GVA remained at ~1% during the same period.

Values for current prices, as specified in MoSPI statistics Pharmaceutical comprises of the pharmaceutical; medicinal chemicals and botanical products, as per MoSPI classification Source: National Accounts Statistics, MoSPI, CRISIL Research

From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements:

For the Fiscal Years 2018, 2017, 2016, 2015 and 2014 their total revenue from operations was Rs1,882.21 million, Rs1,602.59 million, Rs1,537.02 million, Rs1,117.46 million and Rs761.12 million, respectively. Their total revenue from operations, on a 47 consolidated basis, grew at a CAGR of 25.40% between the Fiscal Years 2014 and 2018. For the Fiscal Years 2018, 2017, 2016, 2015 and 2014, their restated profit after tax for the year was Rs184.95 million, Rs120.48 million, Rs126.56 million, Rs40.67 million and Rs28.64 million, respectively.

Their restated profit after tax, on a consolidated basis, grew at a CAGR of 61.38% between the Fiscal Years 2014 and 2018. Their business is organized into domestic and international operations, according to the geographies in which they operate. For Fiscal 2018, their domestic and international operations accounted for 47.00% and 53.00%, respectively, of their revenue from operations.

In terms of their R&D spent, they have incurred Rs27.50 million, Rs31.11 million and Rs20.00 million towards their R&D activities during the Fiscal Years 2018, 2017 and 2016, or 1.47%, 1.95% and 1.28% of their total revenue from operations in such periods, respectively. In line with their focus on R&D activities, they have also made an investment in their Joint Venture, Ami Onco-Theranostics, LLC, a Delaware, USA entity (“AOL”), which is engaged in the development of new photosensitizing compounds used to identify and treat cancer through patent and patent applications and additional know-how regarding the same.

AOL has till now developed three products out of which one is at trail phase-2 and two products are at phase-3 trail (last) and have also filed three (3) process patents across various jurisdictions.

The Promoter of this company is Girishkumar Limbabhai Chovatia, Nareshbhai Ramjibhai Patel, and Chetankumar Chhaganlal Vaghasia. The lead manager to the issue is ITI Capital Limited (Formerly known as Inga Capital Limited) and the Registrar to this issue is Link Intime India Private Limited


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Ami Organics IPO Date

The opening and the closing date of IPO of Ami Organics is not known yet.


Ami Organics IPO Subscription

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The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Ami Organics IPO Allotment Status

Will be updated soon. 


Ami Organics IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Ami Organics IPO Equity Share Offering

3,500,000 Equity Shares of Rs 10/- each but Issue Price is yet to be disclosed so it will be aggregated to Rs (3,500,000 * Issue Price).


Ami Organics Limited – Company Overview

Ami Organics was originally formed as a partnership firm under the Partnership Act, 1932 in the name of “Ami Organics” pursuant to a deed of partnership dated January 3, 2004 executed among their Promoters, along with others, as partners. “Ami Organics” was then converted into private limited company under part IX of the Companies Act, 1956 under the name of “Ami Organics Private Limited” vide certificate of incorporation dated June 12, 2007 issued by Registrar of Companies, Gujarat, Dadra and Nagar Haveli.

Further, pursuant to a resolution passed by their shareholders on April 5, 2018, their Company was converted into a public limited company, following which their Company’s name was changed to “Ami Organics Limited”, and a fresh certificate of incorporation was issued by the Registrar of Companies, Ahmedabad on April 18, 2018.

The Company is promoters have over a decade of experience in the pharmaceutical industry. They the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Ami Organics Limited:

  • Strong capabilities in niche and speciality segment
  • The high number of production facilities, complying to norms of regulated markets
  • Large base of companies operating in the pharmaceutical sector, both domestic as well as global companies, catering to domestic and export markets
  • Low-cost advantage vis-à-vis developed economies

Business strategies of Ami Organics Limited:

  • Capitalize on their position in the development of a series of advanced pharmaceutical intermediates for APIs and NCE.
  • Employing innovative technology for cost efficiency and environmentally friendly processes.
  • Focus on New Product Development and R&D
  • Leverage on Cost Advantage

Ami Organics Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & Lakhs)
31-Mar-1831-Mar-1731-Mar-1631-Mar-1531-Mar-14
Total Assets 1,554.511,089.40923.89
Total Revenue1,911.771,604.731,565.72
Total Expense1,628.311,417.91 1,388.72
Profit After Tax184.4120.49126.51

Earnings per Equity Share (in Lakhs)

31-Dec-1831-Mar-1731-Mar-16
Basic 122.9380.3384.34
Diluted 122.9380.3384.34

From the above statements, one could find that the Ami Organics Limited may perform well.


Ami Organics IPO – Promoters

The Promoter of this company are:

1) Girishkumar Limbabhai Chovatia;

2) Nareshbhai Ramjibhai Patel; and

3) Chetankumar Chhaganlal Vaghasia.

List of Related Parties (Key Managerial Personnel)

  • Pranav Mahajani
  • Shanti Gopalkrishnan

Interest in the promotion of the Company

Their Promoters are not interested in any intellectual property used by the Company as on the date of this Draft Red Herring Prospectus. Further, other than as disclosed below, their Promoters do not have any interest in any property acquired by their Company during the two years preceding the date of filing of this Draft Red Herring Prospectus or any property proposed to be acquired by their Company or in any transaction in the acquisition of land, construction of building or supply of machinery.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires the approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters have not shown any interest in acquiring the intellectual rights of the company.


Ami Organics IPO Offer Details or Issue Details 

OfferUp to 3,500,000 Equity Shares aggregating up to Rs *million
Of which
QIB CategoryNot more than 1,750,000 Equity Shares, aggregating up to Rs * million
Of which:
 Anchor Investor PortionUp to 1,050,000 Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed)Upto 700,000 Equity Shares
Of which:
– Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion))Up to 35,000 Equity Shares
– Balance of QIB Category for all QIBs including Mutual FundsUp to 6,65,000 Equity Shares
Non-Institutional CategoryNot less than 525,000 Equity Shares
Retail CategoryNot less than 1,225,000 Equity Shares
Equity Shares outstanding prior to the offer10,500,000 Equity Shares
Equity Shares outstanding after the Offer14,000,000  Equity Shares

Ami Organics IPO Issue Object

  • Repayment/ prepayment, in full or part, of certain borrowings availed by their Company;
  • Funding the long-term working capital requirements of their Company;
  • Capital expenditure for the development of a new research & development facility in the vicinity of their manufacturing facility; and
  • General corporate purposes.

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Ami Organics IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • The key player in pharmaceuticals intermediate product segment
  • Strong R&D Capabilities and Process Chemistry Skills
  • Sustained financial performance
  • Long-standing Relationships with Domestic and Multi-National Pharmaceutical Companies
  • Extensive geographical reach
  • Strong Sales and Marketing capabilities
  • Experienced and Dedicated Management Team

The relevant quantitative factors are:

Basic & Diluted EPSRONW (%)NAV (Rs.)
31-Mar-18122.9331.87385.69
31-Mar-1780.3230.62262.32
31-Mar-1684.3746.07183.06
  • Industry P/E Ratio:
ParticularsP/E ratio
Average
Highest
Lowest
  • Competitive Peers:

There are no comparable listed companies in India engaged substantially in the same line of business as their Company, hence the comparison with industry peers is not applicable.


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Manorama Industries IPO Lead Managers

Lead Managers
ITI Capital Limited (Formerly known as Inga Capital Limited)
Naman Midtown, 21st Floor, ‘A’ Wing, Senapati Bapat Marg

Elphinstone (West), Mumbai – 400 013, Maharashtra, India
Telephone: +91 22 4031 3489 | Facsimile: +91 22 4031 3379
E-mail:
Investor grievance e-mail:
Website: www.iticapital.in , Contact person: Pranav Mahajani
SEBI Registration No.: INM000010924*

 

Registrar to the Offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083, Maharashtra, India
Telephone: +91 22 4918 6200 | Facsimile: +91 22 4918 6195
E-mail:
Investor grievance e-mail:
Website: www.linkintime.co.in
Contact person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

Other Details:

  • Statutory Auditor – M/s Katariya & Munot Chartered Accountant.
  • Peer Review Auditor – P S D & Associates, Chartered Accountants
  • Bankers to the Company –  ICICI Bank

Ami Organics IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking6.5/106.6/106.6/106.4/106.4/10
Sharekhan6.7/106.4/106.6/106.1/106.2/10
Kotak Securities6.7/106.7/106.7/106.4/106.3/10
ICICI Direct6.6/106.3/106.7/106.5/106.5/10
IIFL6.4/106.7/106.8/106.4/106.7/10
Edelweiss6.7/106.4/106.4/106.3/106.7/10
Zerodha6.5/106.4/106.7/106.4/106.5/10
5Paisa6.7/106.4/106.3/106.7/106.5/10
Karvy6.8/106.3/106.7/106.4/106.0/10
Motilal Oswal6.6/106.4/106.6/106.6/106.4/10

The ratings would be updated once the financials and the other details of the IPO are released.


Ami Organics IPO Grey Market Premium

The Ami Organics IPO Grey Market Premium is yet to be announced. It will be updated as soon as the premium rates are announced.


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Ami Organics IPO News

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