Ami Organics Limited IPO

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1. It is one of the leading research and development (“R&D”) driven manufacturers of specialty chemicals with varied end usage, focussed towards the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ingredients (“APIs”) and New Chemical Entities (“NCE”) and key starting material for agrochemical and fine chemicals, especially from its recent acquisition of the business of Gujarat Organics Limited (“GOL”)(“Acquisition”).

2. It is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The Pharma Intermediates which it manufacture, find application in certain high-growth therapeutic areas including anti-retroviral, antiinflammatory, anti psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant, commanding significant market share both in India and globally.

3. It has developed and commercialised over 450 Pharma Intermediates for APIs across 17 key therapeutic areas since inception and NCE, with a strong focus on R&D. Currently, AMI Organics has 8 process patent applications and 3 additional pending process patent applications for which applications were made recently, in March 2021.

4. In addition, it recently completed the acquisition of two additional manufacturing facilities operated by GOL which has added preservatives  and other specialty chemicals in our existing product portfolio

5. It supply its products to more than 150 customers (including international customers) directly in India and in 25 countries overseas, using a distributorship network in certain cases. Some of its domestic customers include Laurus Labs Limited, Cadila Healthcare Limited and Cipla Limited and some of our key our export customers include Organike s.r.l.a Socio Unico, Fermion Oy, Fabbrica Italiana Sintetici S.p.A, Chori Co. Ltd., Medichem S.A. and Midas Pharma GmbH.

6. It has three manufacturing units located at (i) GIDC, Sachin, Gujarat, (ii) GIDC, Ankleshwar Industrial Estate, (iii) GIDC Industrial Estate, Jhagadia, Gujarat,

Competitive Strengths
1. Strong and diversified product
2. Strong sales and marketing capabilities
3. Experienced and Dedicated Management Team

Objects of the Ami Organics Limited IPO:

The issue comprises of Fresh and Offer for sale. A) Fresh issue of Rs. 300 Cr, and Net proceeds will be used in; 1. Repayment/prepayment of certain financial facilities availed by our Company 2. Funding working capital requirements of our Company 3. General corporate purposes. B) Offer for Sale of up to 6,059,600 Equity Shares
DRHP of Ami Organics Limited IPO
RHP of Ami Organics Limited IPO

Ami Organics Limited IPO Details:

Open Date: Sep 01 2021
Close Date: Sep 03 2021
Total Shares: 11034724
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built
Issue Size: 569.64 Cr.
Lot Size: 24 Shares
Issue Price: ₹ 603 - 610 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

1. Nareshkumar Ramjibhai Patel, is the Executive Chairman and Managing Director of the Company and has been associated with the Company since its incorporation. He holds a Bachelor of Engineering degree from the Gujarat University. He set up a partnership firm in Surat, CNR Intermediates, for manufacturing, purchasing and selling all kinds of chemicals, before founding the partnership firm Ami Organics with Girishkumar Limbabhai Chovatia and Chetankumar Chhaganlal Vaghasia in 2004. He is currently also a designated partner at Globe Bio Care. 2. Chetankumar Chhaganlal Vaghasia, is a Whole-time Director of the Company and has been associated with our Company since its incorporation. He holds a Diploma in Man-Made Textile Processing from the Mantra Education Institute, Surat. He set up a partnership firm in Surat, CNR Intermediates, for manufacturing, purchasing and selling all kinds of chemicals, before founding the partnership firm Ami Organics in 2004. He is currently also a designated partner at Globe Bio Care. 3. Virendra Nath Mishra, is the Whole-time Director of the Company. He holds a Bachelor of Science degree from the Veer Bahadur Singh Purvanchal University, Jaunpur, and holds a Master of Science (Chemistry) degree from the Poorvanchal University, Jaunpur. He was initially appointed as production manager in the Company and has been associated with the Company since 2005. He served as an Executive Director on the Board of the Company from May 9, 2017, to March 1, 2018, and was subsequently appointed as the Director - Operation in the Company with effect from April 1, 2018. Prior to joining the Company, he was associated with K.A. Malle Pharmaceuticals Limited as an Officer (Research and Development) and Surya Organics and Chemicals. 4. Girikrishna Suryakant Maniar, is a non-executive, Independent Director of the Company. He holds a Bachelor of Science degree in Chemistry from the University of Bombay and is a fellow member of the Institute of Cost Accountants of India. He has been practicing as a cost accountant since 1988. He was appointed as an Independent Director of the Company on April 23, 2018.

Financials of Ami Organics Limited IPO:

Particulars (in Millions) Mar 21 Mar 20 Mar 19
Revenue 3,406 2,396 2,385
Cost of material consumed 1,746 1,378 1,520
Change in inventories 48 -89 -36
Employee Benefit Expenses 210 178 117
Other Expenses 599 519 362
Operating Profit 803 410 422
OPM % 23.58% 17.11% 17.69%
Other Income 13.8 28.44 3.84
Depreciation & Amortisations 41 35 26
Financial Cost 56 55 47
Profit Before Tax 717 347 351
Profit After Tax 531 295 247
NPM% 15.59% 12.31% 10.36%
EPS 17.14 8.72 8.72
 

Comparison With Peers:

Companies Face Value PE Ratio NAV EPS Total Income (₹ in million)
Aarti Industries Ltd 5 56.98 201.05 17.14 45,061
Hikal Ltd 2 35.44 75.7 30.04 17,204
Valiant Organics Ltd 10 37.11 184.97 44.68 7,548
Vinati Organics Ltd 1 67.45 150.16 26.2 9,542
Neuland Laboratories Ltd 10 33. 02 612.99 62. 85 9,369
Atul Ltd 10 38.74 1,293.31 221.17 37,314

Recommendation on Ami Organics Limited IPO:

Review and Recommendation of Ami Organics IPO by InvestorZone is 6/10. 1. Revenue has grown up from 238 Crores to 340 Crores which has shown consistent financial performance. 2. AMI organics has experienced and dedicated management. 3. Company has good client base. 4. P/E of 43x. If you see the peers like Aarti and Vinati they are trading at P/E of 62 and 75 respectively. So, the valuations looks reasonable. 5. Sector in which company is operating will grow well in coming years.

Lead Manager of Ami Organics Limited IPO:

  1. Ambit Capital Private Limited
  2. Axis Capital Limited
  3. Intensive Fiscal Services Private Limited

Registrar of Ami Organics Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Ami Organics Limited Plot No. 440/4, 5 & 6, Road No. 82/A GIDC Sachin, Surat – 394 230 Phone: +91 261 239 7193 Email: cs@amiorganics.com Website: http://www.amiorganics.com/

Discussion on Ami Organics Limited IPO:

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