Aether Industries
Mainboard₹808 Cr issue
+9.99%
Listing gain over issue price
Issue size
₹808 Cr
1 lot at cut-off
₹14,766
Lot size
23shares
Open
24 May 2022
Close
26 May 2022
Allotment
31 May 2022
Listing
03 Jun 2022
Listing performance
Issue price
₹642
Listed at
₹706.15
Listing-day close
₹776.75
Latest price
₹1,412.70
Close on 23 Oct 2026
Listing gain
+9.99%
Return since issue
+120.05%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 May 2022 – 26 May 2022
- Listing date
- 03 Jun 2022
- Face value
- ₹10 per share
- Issue price
- ₹642 per share
- Lot size
- 23 shares
- Total issue size
- ₹808 Cr
- Market cap at offer price
- ₹7,992 Cr
- Promoter holding
- 96.97% → 87.09% pre-issue → post-issue
- ISIN
- INE0BWX01014
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- HDFC Bank Ltd.
- Registered office
- Plot No.8203, GIDC, Sachin, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,42,495 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 23 shares per lot, in multiples, at ₹642
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 23 | ₹14,766 |
| Retail (max) | 13 | 299 | ₹1,91,958 |
| S-HNI (min) | 14 | 322 | ₹2,06,724 |
| S-HNI (max) | 67 | 1,541 | ₹9,89,322 |
| B-HNI (min) | 68 | 1,564 | ₹10,04,088 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
37,42,495
Anchor portion
₹240 Cr
at ₹642 per share
Valuation and performance
Valuation at offer price
₹642 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.36 | — |
| P/E (×) | 87.23 | — |
| Market cap | — | ₹7,992 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 40.79%
- ROCE
- 28.50%
- Debt / equity
- 1.19
- PAT margin
- 15.67%
- EBITDA margin
- 24.93%
- NAV per share
- ₹15.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aether Industries
Aether Industries Limited is a specialty chemical manufacturer incorporated on January 23, 2013, in Surat, Gujarat, India. The company produces advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies. The business started in 2013 with a vision to create a niche in the global chemical industry. Through its first phase until Fiscal 2017, the company focused on building its team and infrastructure and on R&D-centered activities. Revenue generation commenced in Fiscal 2018. The company operates through two manufacturing facilities at Sachin in Surat, Gujarat: Manufacturing Facility 1 (approximately 3,500 square meters) for R&D activities, analytical sciences, pilot plant, CRAMS facility, and hydrogenation facility; and Manufacturing Facility 2 (approximately 10,500 square meters) for large-scale production. As of March 31, 2022, the company had 719 employees and more than 150 contract workers and trainees.
Company Analysis
from RHPAether Industries Limited is a specialty chemical manufacturer producing advanced intermediates and specialty chemicals for the pharmaceuticals, agrochemicals, material science, coatings, and high-performance photography industries.
Aether Industries Limited is a specialty chemical manufacturer incorporated on January 23, 2013, in Surat, Gujarat, India. The company produces advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies. The business started in 2013 with a vision to create a niche in the global chemical industry. Through its first phase until Fiscal 2017, the company focused on building its team and infrastructure and on R&D-centered activities. Revenue generation commenced in Fiscal 2018. The company operates through two manufacturing facilities at Sachin in Surat, Gujarat: Manufacturing Facility 1 (approximately 3,500 square meters) for R&D activities, analytical sciences, pilot plant, CRAMS facility, and hydrogenation facility; and Manufacturing Facility 2 (approximately 10,500 square meters) for large-scale production. As of March 31, 2022, the company had 719 employees and more than 150 contract workers and trainees.
specialty chemicalspharmaceuticalsagrochemicalsmaterial sciencecoatingshigh-performance photographyfood additivesoil & gas
Objects of the Issue
- Funding capital expenditure requirements for the Proposed Greenfield Project ₹1,630.00 million p.23
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹1,379.00 million p.23
- Funding working capital requirements of our Company ₹1,650.00 million p.23
- General corporate purposes p.23
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹1,379.00 million p.95
- Funding capital expenditure requirements for manufacturing facility (Proposed Greenfield Project) ₹1,630.00 million p.95
- Funding working capital requirements of our Company ₹1,650.00 million p.95
- General corporate purposes p.95
- Funding the Proposed Greenfield Project (new manufacturing facility including building construction, plant and machinery, equipment installation, and commissioning) ₹2,121.78 million p.99
- Prepayment or repayment of all or a portion of certain outstanding borrowings ₹1,379.00 million p.101
- Funding working capital requirements ₹1,650.00 million p.104
- General Corporate Purposes p.105
Issue Structure
- Total Issue
- Up to [●] Equity Shares, aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares, aggregating up to ₹ 6,270.00 million
- Offer for Sale
- Up to 2,820,000 Equity Shares, aggregating up to ₹ [●] million by the Promoter Selling Shareholder
- Price Band
- [●] (to be determined)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10
Business Model
The company manufactures and sells advanced intermediates and specialty chemicals to customers in the pharmaceuticals, agrochemicals, material science, coatings, high-performance photography, food additives, and oil & gas industries. The company also operates a Contract Research and Manufacturing Services (CRAMS) business. Revenue is generated through the sale of these specialty chemicals to multinational and domestic companies. For the nine months ended December 31, 2021, gross revenue from operations was ₹4,425.44 million, with pharmaceuticals contributing 62.60%, agrochemicals 22.99%, material science 4.25%, and other segments contributing the remainder.
Business Segments
Supply of advanced intermediates and specialty chemicals to pharmaceutical manufacturers
Supply of advanced intermediates and specialty chemicals to agrochemical manufacturers
Supply of advanced intermediates and specialty chemicals to material science applications
Supply of advanced intermediates and specialty chemicals to high-performance photography applications
Supply of advanced intermediates and specialty chemicals to coatings manufacturers
Supply of advanced intermediates and specialty chemicals to oil and gas industry
Manufactures advanced intermediates and specialty chemicals used in pharmaceutical APIs for therapeutic segments including hypertension (4MEP, OTBN, T2E), anti-platelet (T2E, NODG), anti-psychotic (HEEP), anti-histamine (HEEP), and NSAIDs (NODG). Products serve as building blocks for active pharmaceutical ingredients.
Provides contract research and manufacturing services to customers. The company's Pilot Plant with 106 reactors functions as a stand-alone manufacturing facility for low volume, high value products for CRAMS customers, with dual functionality for scale-up data generation and commercial production.
Manufactures specialty chemicals on a contract or exclusive basis for customers, including products such as MMBC manufactured for customers as part of contract/exclusive manufacturing business.
Manufactures specialty chemicals for agrochemicals (MMBC, OTBN, BFA), material science, coatings (DVL), high performance photography, additives (DVL), and oil & gas applications.
Manufactures advanced intermediates and specialty chemicals for pharmaceutical APIs and formulations with applications in therapeutic areas including hypertension, anti-platelet, anti-psychotic, anti-histamine and NSAID segments
Produces specialty chemicals for agrochemical applications including insecticides and other agricultural chemical products
Manufactures specialty chemicals for use in material science, coatings, high-performance photography additives and oil & gas applications
Provides contract research, pilot scale-up services, contract manufacturing, FTE services, technology development and process development and optimization services where customers outsource their R&D and manufacturing needs
Manufactures customer products under contractual supply agreement based model with both short-term and long-term contracts involving exclusive and non-exclusive arrangements
Sale of specialty chemicals and intermediates manufactured locally for domestic market
Sale of specialty chemicals and intermediates to international markets
Sale of manufactured goods treated as exports under government scheme
Contract research and manufacturing services provided for export
Specialized technical and service exports
Manufacturing and direct sale of specialty chemicals and advanced intermediates produced by the company
Manufacturing products to customer specifications under exclusive or non-exclusive arrangements
Provision of research, development, and manufacturing services on behalf of customers
SWOT Analysis
Strengths
- • Fast-growing specialty chemicals company with strong CAGR(p.22)
- • Diversified customer base across multiple end-use industries(p.29)
- • Strong insurance coverage across assets and operations(p.30)
- • Quality certifications and regulatory compliance across operations(p.36)
- • Significant R&D investment to support innovation and product development(p.35)
- • Significant raw material imports as percentage of revenue(p.45)
- • Strong export presence across multiple geographies(p.46)
- • Declining cost of materials as percentage of revenue(p.45)
- • Eight distinct chemistry competencies across product portfolio(p.156)
- • Global market leadership in multiple products(p.157)
- • Fastest growing specialty chemical company in India(p.156)
- • Strong R&D capabilities with specialized talent(p.158)
- • One of largest pilot plants globally with advanced technology(p.158)
- • Strong export growth and geographic diversification(p.158)
- • 100% import substitution with locally developed products(p.158)
- • Continuous reaction technology deployed across all stages(p.157)
- • Market-leading position in multiple specialty chemical products globally(p.162)
- • Strong proprietary R&D capabilities with multiple chemistry and technology core competencies(p.163)
- • Diversified customer base with long-standing relationships across multiple geographies(p.164)
- • Three synergistic business models with demonstrated track record of conversion(p.165)
- • Advanced automated manufacturing infrastructure with high capacity utilization(p.165)
- • Strong financial performance with rapid revenue and profitability growth(p.167)
- • Experienced promoters and senior management with combined 125+ years in chemical industry(p.168)
- • Environment, health and safety focus with certifications and green chemistry principles(p.159)
- • Highly qualified independent board with deep technical expertise in chemistry and engineering(p.204)
- • Strong R&D capabilities with multiple patents and awards among senior management(p.204)
- • Experienced management with decades of industry presence in specialty chemicals and related sectors(p.213)
- • Multiple chemistry competencies enabling diverse product portfolio(p.285)
- • In-house R&D development of all chemistry competencies(p.285)
- • Rapid commercialization across three distinct business models(p.285)
- • Market leadership in multiple specialty chemicals(p.286)
- • Strong revenue growth trajectory(p.285)
- • Improved material cost efficiency and economies of scale(p.286)
Weaknesses
- • High customer concentration risk(p.29)
- • Limited long-term contracts with major customers(p.29)
- • No long-term agreements with raw material suppliers(p.38)
- • Geographic concentration of all manufacturing facilities in Gujarat(p.39)
- • Significant contingent liabilities from tax and regulatory matters(p.24)
- • No patents to protect intellectual property(p.34)
- • Past failure to make timely regulatory filings(p.31)
- • High inventory turnover requiring significant working capital(p.43)
- • High dependence on imported raw materials with regulatory import restrictions(p.45)
- • Exposure to product liability claims and recalls(p.46)
- • Dependence on third-party utility suppliers(p.46)
- • Significant outstanding borrowings with restrictive covenants(p.47)
- • Unsecured loans repayable on demand(p.48)
- • Concentration of manufacturing facilities and leasehold tenure risks(p.48)
- • Promoter concentration limits shareholder governance(p.49)
- • High customer concentration in revenue generation(p.109)
- • Substantial debt levels requiring deleveraging(p.101)
- • Single manufacturing site concentration(p.158)
- • Operations involve hazardous substances with safety risks(p.109)
- • Insurance may not cover all operational losses(p.109)
- • High customer concentration with top 10 customers representing over 55% of revenue(p.164)
- • Dependence on imports of raw materials, particularly from China(p.180)
- • Lack of patent protection; reliance on trade secrets and contractual restrictions(p.185)
- • Proposed capacity expansion subject to implementation risks(p.170)
- • High reliance on related party borrowings from promoters and directors(p.251)
- • Significant financial leverage with substantial borrowing obligations(p.250)
- • Concentration of ownership with four executive directors/promoters holding significant equity(p.248)
- • No dividend history and uncertain future dividend policy(p.221)
- • Heavy customer concentration risk(p.288)
- • Increasing inventory carrying costs(p.278)
- • Material import dependence and currency exposure(p.287)
- • High power and fuel costs relative to revenue(p.289)
- • Significant dependence on pharmaceutical and agrochemical end-markets(p.288)
Opportunities
- • Strong industry growth tailwinds in specialty chemicals(p.22)
- • Growing pharmaceutical and agrochemicals segments(p.22)
- • Expansion of product portfolio into new therapeutic areas(p.40)
- • Capacity expansion through new greenfield project(p.23)
- • Strategic focus on export market penetration(p.33)
- • Capacity expansion through greenfield manufacturing project(p.97)
- • Continued growth in export markets(p.46)
- • Benefits of listing including brand visibility and public market creation(p.95)
- • India specialty chemicals market growing faster than global average(p.124)
- • Manufacturing shift from China to India post-COVID(p.123)
- • Expansion of Indian CRAMS market with higher growth trajectory(p.131)
- • Launching new pharmaceutical APIs in pipeline(p.113)
- • Strong demand for green chemicals with government support(p.123)
- • Significant pharmaceutical API market growth driven by generics(p.133)
- • India specialty chemicals market growing at 11.2% CAGR versus global 5.2%(p.160)
- • Supply chain de-risking from China due to environmental norms and rising labor costs(p.161)
- • Growing pharmaceutical and agrochemical end-use segments(p.160)
- • Government support through PLI scheme and Make in India campaign(p.161)
- • Opportunity to convert CRAMS projects into large-scale contract manufacturing(p.169)
- • Expansion into new product portfolio and business segments(p.169)
- • Strategic acquisition targets in US and EU for R&D and manufacturing assets(p.170)
- • Expansion of manufacturing capacity with acquisition of adjacent land for new plant(p.230)
- • Strong revenue growth trajectory across multiple product categories(p.230)
- • Diversified business model including contract manufacturing and CRAMS services(p.230)
- • Established capability to serve multiple end-markets across pharmaceuticals, agrochemicals and specialty sectors(p.230)
- • Planned capacity expansion through greenfield projects(p.287)
- • Product portfolio expansion and new product launches(p.287)
- • R&D centre expansion to support innovation(p.287)
- • Growing global demand for specialty chemicals in pharma and agri segments(p.288)
- • Diversified geographic revenue base reducing regional dependence(p.287)
Threats
- • Raw material price volatility linked to crude oil prices(p.43)
- • Foreign exchange rate fluctuations affecting export revenues(p.35)
- • Intense competition from multinational and domestic competitors(p.39)
- • Regulatory and compliance risks in hazardous materials handling(p.30)
- • Ongoing impacts and uncertainties from COVID-19 pandemic(p.37)
- • Dependence on third-party logistics providers with no long-term contracts(p.44)
- • Potential regulatory approvals and licenses challenges(p.39)
- • Economic and political instability in Gujarat region(p.39)
- • Trade restrictions, tariffs and sanctions on chemical exports(p.46)
- • Global economic downturn and reduced customer demand(p.46)
- • Expiry or withdrawal of export incentives and subsidies(p.46)
- • Slowdown in Indian economic growth(p.52)
- • Adverse impact from changing regulations and tax regimes(p.53)
- • Inflation impacting input and labor costs(p.54)
- • Natural calamities and pandemics disrupting operations(p.53)
- • Foreign exchange rate fluctuations affecting export competitiveness(p.57)
- • Competition and anti-competitive regulatory enforcement risks(p.56)
- • Russia-Ukraine conflict creating global economic uncertainty(p.53)
- • Capacity expansion plans subject to implementation delays and cost overruns(p.99)
- • Regulatory non-compliance in past affecting operations(p.109)
- • Risk of debt rating downgrades(p.109)
- • Concentration of sales in specific industries(p.109)
- • High barriers to entry attracting future competition(p.126)
- • Chinese competitors dominate intermediates market globally(p.138)
- • Volatile raw material prices linked to international commodity prices(p.180)
- • Competition primarily from international manufacturers, especially Chinese companies(p.183)
- • Dependence on third-party logistics providers with no long-term contracts(p.181)
- • High barrier to entry characteristics limiting new product expansion(p.162)
- • Regulatory compliance and environmental regulations in manufacturing operations(p.181)
- • Risk of disruption from COVID-19 pandemic and logistics challenges(p.186)
- • Inability to ensure dividend payments in future due to multiple operational and financial factors(p.221)
- • Potential impact of restrictive covenants in loan agreements on dividend capacity(p.221)
- • Raw material price volatility linked to crude oil prices(p.286)
- • Trade tensions affecting raw material supplies from China(p.286)
- • Foreign exchange volatility affecting exports and debt servicing(p.287)
- • Reliance on customer demand without long-term supply contracts(p.286)
- • Cyclicality and seasonality in pharmaceutical and agrochemical end-markets(p.288)
- • Coal and oil price escalation impacting power costs(p.289)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashwin Jayantilal Desai | Promoter | 5.86% | — |
| Purnima Ashwin Desai | Promoter/Promoter Selling Shareholder | 30.40% | — |
| Rohan Ashwin Desai | Promoter | 1.94% | — |
| Dr. Aman Ashvin Desai | Promoter | 0.10% | — |
| AJD Family Trust | Promoter | 11.82% | — |
| PAD Family Trust | Promoter | 11.82% | — |
| RAD Family Trust | Promoter | 17.45% | — |
| AAD Family Trust | Promoter | — | — |
| AAD Business Trust | Promoter | 17.45% | — |
| Purnima Ashwin Desai | Promoter | 30.40% | — |
| RAD Family Trust | Promoter | 17.45% | — |
| AAD Business Trust | Promoter | 17.45% | — |
| AJD Family Trust | Promoter | 11.82% | — |
| PAD Family Trust | Promoter | 11.82% | — |
| Ashwin Jayantilal Desai | Promoter | 5.86% | — |
| Rohan Ashwin Desai | Promoter | 1.94% | — |
| Ashwin Jayantilal Desai | Managing Director/Promoter | — | — |
| Purnima Ashwin Desai | Whole-time Director/Promoter | — | — |
| Rohan Ashwin Desai | Whole-time Director/Promoter | — | — |
| Dr. Aman Ashvin Desai | Whole-time Director/Promoter | — | — |
| Ashwin Jayantilal Desai | Promoter/Managing Director | 0.81% | — |
| Purnima Ashwin Desai | Promoter/Whole-time Director | 4.57% | — |
| Rohan Ashwin Desai | Promoter/Whole-time Director | 1.78% | — |
| Dr. Aman Ashvin Desai | Promoter/Whole-time Director | 1.15% | — |
| AJD Family Trust | Promoter Group | — | — |
| PAD Family Trust | Promoter Group | — | — |
| RAD Family Trust | Promoter Group | — | — |
| AAD Family Trust | Promoter Group | — | — |
| AAD Business Trust | Promoter Group | — | — |
Leadership
Kamalvijay Ramchandra Tulsian · Chairperson
Faiz Arif Nagariya · Chief Financial Officer
Chitrarth Rajan Parghi · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Aether Industries IPO FAQs
What is the lot size of Aether Industries IPO?
The minimum lot size of Aether Industries IPO is 23 shares. One lot costs ₹14,766 at the cut-off price.
When does Aether Industries IPO open and close?
Aether Industries IPO opened for subscription on 24 May 2022 and closed on 26 May 2022.
What is the listing date of Aether Industries IPO?
Aether Industries IPO listed on 03 Jun 2022.