Ami Organics
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 01 Sep 2021 – 03 Sep 2021
- Listing date
- 14 Sep 2021
- Face value
- ₹10 per share
- Issue price
- ₹610 per share
- Lot size
- 24 shares
- Total issue size
- ₹570 Cr
- Market cap at offer price
- ₹2,223 Cr
- Promoter holding
- 47.34% → 41.05% pre-issue → post-issue
- ISIN
- INE00FF01025
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- Plot No.440/4, 5 & 6, Road No.82/A, 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 | 28,01,485 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 24 shares per lot, in multiples, at ₹610
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 24 | ₹14,640 |
| Retail (max) | 13 | 312 | ₹1,90,320 |
| S-HNI (min) | 14 | 336 | ₹2,04,960 |
| S-HNI (max) | 68 | 1,632 | ₹9,95,520 |
| B-HNI (min) | 69 | 1,656 | ₹10,10,160 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,223 Cr |
About Ami Organics
Ami Organics Limited is a research and development driven manufacturer of specialty chemicals with diverse end-use applications. Founded as a partnership firm in 2004 and incorporated as a private limited company in 2007, the company converted to public limited status in 2018. Operating manufacturing facilities in Gujarat (Surat, Ankleshwar, and Jhagadia), the company manufactures pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs), new chemical entities (NCEs), and key starting materials for agrochemicals and fine chemicals. The company recently acquired the preservatives and specialty chemicals business of Gujarat Organics Limited. According to the F&S Report, the company is one of the major manufacturers of pharmaceutical intermediates for key APIs including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. These intermediates find application in therapeutic areas including anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant treatments.
Company Analysis
from RHPR&D-driven manufacturer of specialty chemicals including pharmaceutical intermediates, agrochemical key starting materials, and fine chemicals for regulated and generic APIs across multiple therapeutic areas.
Ami Organics Limited is a research and development driven manufacturer of specialty chemicals with diverse end-use applications. Founded as a partnership firm in 2004 and incorporated as a private limited company in 2007, the company converted to public limited status in 2018. Operating manufacturing facilities in Gujarat (Surat, Ankleshwar, and Jhagadia), the company manufactures pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs), new chemical entities (NCEs), and key starting materials for agrochemicals and fine chemicals. The company recently acquired the preservatives and specialty chemicals business of Gujarat Organics Limited. According to the F&S Report, the company is one of the major manufacturers of pharmaceutical intermediates for key APIs including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. These intermediates find application in therapeutic areas including anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant treatments.
Objects of the Issue
- Repayment of certain indebtedness availed by our Company 1,400 million p.20
- Funding working capital requirements of our Company 900 million p.20
- General corporate purposes p.20
- Repayment/prepayment of certain financial facilities availed by our Company ₹1,400.00 million p.89
- Funding working capital requirements of our Company ₹900.00 million p.88
- General corporate purposes p.95
Issue Structure
- Fresh Issue
- Up to ₹ 2,000 million
- Offer for Sale
- Up to 6,059,600 Equity Shares aggregating up to [●] million
- Face Value
- ₹ 10
Business Model
The company earns revenue from manufacturing and selling pharmaceutical intermediates to pharmaceutical companies that use them to produce active pharmaceutical ingredients and final drug formulations. The company also generates revenue from the sale of specialty chemicals for use in cosmetics, dyes, agrochemicals, and other industries. Export sales represent a significant portion of revenue (51.57% in Fiscal 2021), with products sold to over 25 countries. The company operates on a B2B model and does not have direct control over how its intermediates are utilized by customers.
Business Segments
SWOT Analysis
- • R&D-driven manufacturer of specialty chemicals with focus on pharma intermediates for regulated and generic APIs(p.19)
- • Major manufacturer of pharma intermediates for key high-growth therapeutic APIs including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban(p.19)
- • Established operations with dedicated R&D laboratory and Analytical Development Laboratory (ADL) for product development and specifications(p.30)
- • Revenue growth from FY2019 to FY2021: from ₹2,385.12 million to ₹3,406.08 million(p.20)
- • Export presence across over 25 countries with significant export revenue contribution(p.35)
- • REACH registered supplier with competitive advantage(p.49)
- • Strong revenue growth trajectory(p.52)
- • Leading market position in key pharmaceutical intermediates(p.277)
- • Extensive R&D-driven product portfolio across 17 therapeutic areas(p.275)
- • US FDA approved manufacturing facility with international certifications(p.276)
- • Strong and diversified customer base with established long-term relationships(p.279)
- • Significant export presence and international revenue contribution(p.276)
- • Diversified product portfolio beyond pharma intermediates through recent acquisition(p.278)
- • Strong revenue growth post-FDA inspection(p.293)
- • Strong profitability improvement(p.294)
- • Improved raw material efficiency(p.293)
- • Solid interest coverage ratio(p.300)
- • Operating leverage from scale(p.296)
- • High dependence on limited number of customers; top 5 customers account for 44.43% of revenue in FY2021(p.31)
- • Significant concentration of revenue in specific therapeutic areas; anti-depressant and anti-retroviral together account for 49.35% of FY2021 revenue(p.28)
- • High debt levels with borrowings at 81.85% of net worth as of March 31, 2021(p.29)
- • Significant working capital requirements; working capital was 117 days of revenue as of March 31, 2021(p.31)
- • No long-term contracts with most significant customers; business conducted on basis of purchase orders placed from time to time(p.31)
- • Recent fire incident at Sachin Facility on February 26, 2021 resulting in property loss of ₹107.49 million(p.37)
- • Raw materials significantly concentrated in China; 19.39% of total raw material purchases in FY2021 from China(p.38)
- • Relatively low capacity utilization at 36% in FY2019, indicating underutilized manufacturing assets(p.40)
- • Promoters' personal guarantees on loans(p.44)
- • Dependence on intellectual property protection still pending(p.44)
- • Recent fire damage at manufacturing facility(p.45)
- • Pending patent applications create vulnerability(p.44)
- • High trade receivable days indicating cash flow pressure(p.45)
- • Significant portion of raw materials imported(p.53)
- • Conflict of interest risk with group companies(p.47)
- • High dependence on top five customers for significant revenue(p.279)
- • Significant exposure to raw material cost fluctuations with limited long-term contracts(p.280)
- • Raw materials comprise over half of revenue, creating margin vulnerability(p.280)
- • Dependence on a few key personnel with specialized expertise(p.281)
- • Heavy reliance on China for imported raw materials and supply chain concentration(p.280)
- • Significant customer concentration risk(p.302)
- • High leverage with floating rate debt exposure(p.301)
- • Dependence on raw material imports(p.291)
- • Recent acquisition integration risks(p.312)
- • Low cash position(p.296)
- • Indian specialty chemicals market expected to grow at 11-12% CAGR; pharmaceutical intermediates market estimated at USD 4.8 Bn growing at 9.8% CAGR(p.19)
- • Acquisition of GOL business expands into preservatives and specialty chemicals with end usage in cosmetics, dyes and agrochemicals(p.39)
- • High-growth therapeutic areas provide market expansion potential: anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant(p.19)
- • Capacity expansion underway; recent acquisition of Ankleshwar and Jhagadia facilities and continuing investments to increase existing capacity(p.40)
- • Expansion through inorganic growth acquisitions(p.52)
- • Reduce debt burden and improve financial flexibility(p.90)
- • Leverage public listing for enhanced credibility and growth(p.88)
- • Expansion into specialty chemicals through recent acquisition of two manufacturing facilities(p.276)
- • Growing domestic API demand and government support for local manufacturing(p.279)
- • Shift from China to India as alternative for pharmaceutical intermediates manufacturing(p.279)
- • Market expansion with 25 countries overseas and significant growth potential(p.276)
- • Growing markets in high-growth therapeutic areas with expanding product portfolio(p.279)
- • Expansion via acquired facilities(p.297)
- • Growing pharmaceutical intermediates market(p.293)
- • Export market opportunity(p.293)
- • Technology and R&D capabilities(p.298)
- • COVID-19 pandemic creates uncertainty and risk of operational disruptions including facility closures, supply chain disruptions and liquidity challenges(p.25)
- • Subject to strict regulatory requirements and FDA inspections; receipt of FDA-483 letters in past with potential for warning letters and facility shutdowns(p.26)
- • Increasingly stringent environmental, health and safety regulations with potential for significant compliance costs and penalties(p.27)
- • Risk of product obsolescence due to development of breakthrough alternate drugs in therapeutic areas of focus(p.28)
- • Dependence on limited suppliers; top 5 suppliers account for 34.58% of purchases in FY2021(p.31)
- • Geopolitical tensions between India and China may affect ability to source raw materials(p.38)
- • Hazardous manufacturing operations involving flammable chemicals create risks of fire, explosion, environmental contamination and personnel injury(p.37)
- • Export obligations under DEEC scheme; failure to meet export obligations would require payment of customs duties(p.34)
- • Foreign exchange volatility risk; significant portion of revenue and expenditure in foreign currencies(p.39)
- • Risk of export restrictions and tariffs in overseas markets including United States and European countries(p.35)
- • Intense competition in pharmaceutical industry(p.49)
- • Competitor consolidation reducing market share opportunities(p.49)
- • Import restrictions on raw materials(p.53)
- • Removal of REACH registration advantage(p.49)
- • Disruptions to transportation and distribution networks(p.44)
- • Essential utilities shortage risks(p.46)
- • Regulatory and licensing compliance risks(p.49)
- • Labour-intensive operations vulnerability(p.50)
- • Geopolitical tensions affecting raw material procurement(p.54)
- • Economic slowdown impact on demand(p.54)
- • Inflation pressures on margins(p.56)
- • GIDC leasehold land compliance risks(p.47)
- • Contingent tax liabilities exposure(p.51)
- • Intense competition from larger players with greater resources(p.280)
- • Regulatory compliance requirements and environmental liabilities(p.280)
- • Customer concentration risk and demand fluctuations dependent on end-user pharmaceutical industry(p.279)
- • COVID-19 pandemic impacts on supply chains, operations and demand(p.281)
- • High barriers to entry but also volatile market dynamics in pharmaceutical intermediates(p.280)
- • Intense competitive environment(p.302)
- • Raw material price volatility(p.301)
- • Foreign exchange risk(p.301)
- • Interest rate risk on floating rate debt(p.301)
- • Regulatory and compliance risks(p.312)
- • Inflation impact on costs(p.301)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nareshkumar Ramjibhai Patel | Promoter | 12.07% | — |
| Chetankumar Chhaganlal Vaghasia | Promoter | 9.34% | — |
| Shital Nareshbhai Patel | Promoter | 11.87% | — |
| Parul Chetankumar Vaghasia | Promoter/Promoter Selling Shareholder | 11.87% | — |
| Nareshkumar Ramjibhai Patel | Promoter | 12.07% | — |
| Chetankumar Chhaganlal Vaghasia | Promoter | 9.34% | — |
| Shital Nareshbhai Patel | Promoter | 11.87% | — |
| Parul Chetankumar Vaghasia | Promoter | 11.87% | — |
| Nareshkumar Ramjibhai Patel | Promoter | 12.07% | — |
| Chetankumar Chhaganlal Vaghasia | Promoter | 9.34% | — |
| Shital Nareshbhai Patel | Promoter | — | — |
| Parul Chetankumar Vaghasia | Promoter | — | — |
| Nareshbhai Ramjibhai Patel | Promoter | 12.71% | — |
| Shitalben Nareshbhai Patel | Promoter | 12.50% | — |
| Chetanbhai Chhaganbhai Vaghasiya | Promoter | 9.83% | — |
| Parulben Chetanbhai Vaghasiya | Promoter | 12.50% | — |
| Girishbhai Limbabhai Chovatiya | Promoter | 18.59% | — |
| Kiranben Girishbhai Chovatiya | Promoter | 23.33% | — |
Leadership
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.