Participants from the grey market are positive on the issue and suggest that the issue is headed for a positive surprise due to its niche business, experienced management, sound fundamentals and solid response.
Amarjeet Maurya, AVP – Mid Caps, Angel One, said the company is commanding reasonable valuations with a diversified customer base, strong financial track record and higher ROE.
“Considering all the positive factors, we believe this valuation is at reasonable levels,” he added. “Thus, we are positive on the IPO for the long term horizon.”
The initial public offering (IPO) of Aether Industries was open for subscription between May 24-26 as the company sold its shares in the range of Rs 610-642 to raise Rs 808 crore via primary route.
The issue received a solid response from investors with an overall subscription of more than 6.26 times, thanks to solid bidding from institutional buyers whose portion was subscribed 17.6 times and HNI allocation was booked 2.5 times.
Aayush Agrawal, Senior Analyst, , said the issue received a good response from investors, particularly institutional buyers, but the dud action in the grey market limits listing pop and upside in the near term.
“However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects,” he added. “We expect a positive listing for the issue, and post listing, long-term investors may accumulate the stock.”
Incorporated in 2013, Aether Industries is a manufacturer of specialty chemicals and sole player in some of the categories. The company is the largest manufacturer of 4MEP, T2E, NODG and HEEP products in the world by volume.
Aether Industries has two manufacturing sites at Sachin in Surat, Gujarat. Its product portfolio comprised over 25 products sold to over 34 global companies in 18 countries and to over 154 domestic companies as of March 31, 2022.
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