Aether industries IPO makes strong debut, surges 21% post listing

Shares of specialty chemical manufacturer Aether Industries had a bumper opening at Dalal Street on Friday, with stock listing at a 10% premium over the issue price of ₹642. The stock, which was listed in a special pre-opening session at around 10 AM today, opened at ₹706.15 on the Bombay Stock Exchange (BSE). The equity shares of Aether Industries (Scrip Code: 543534) are listed on the BSE in the list of ''B'' group securities.

On the National Stock Exchange (NSE), the chemical company kicked off trading at ₹704, up 9.65% against the upper price band of the offer price of ₹610-642 apiece.

The strong listing was in line with market expectations as it was trading at a premium of ₹23 in the grey market, an informal market where deals are done in-person only among the trusted group of investors.

Post debut, Aether Industries shares were locked in an upper circuit at ₹776.75, up 21% against the issue price and 10% against the listing price. On the volume front, 5.2 lakh shares worth ₹40 crore changed hands over the counter, while market capitalisation of the company surged to ₹9,669.2 crore. The surge in share price was in line with the broader market, with BSE benchmark Sensex trading 460 points higher at 56,278 levels at the time of reporting.

The ₹808-crore initial public offering (IPO) of Aether Industries had received an overwhelming response from investors, especially from the institutional side. The public issue, which opened for subscription between May 24 and May 26, was subscribed 6.26 times on the final day. The quota set aside for qualified institutional buyers was booked 17.57 times, while the portion for non-institutional investors received 2.52 times bids. The quotas for retail investors and employees were fully booked.

The IPO consisted of a fresh issue of up to ₹627 crore, reduced from ₹757 crore planned earlier, and an offer for sale of up to 28.2 lakh equity shares worth ₹181 crore. Ahead of the IPO, the company raised a little over ₹240 crore from anchor investors.

Incorporated in 2013, Aether Industries is a speciality chemical manufacturer in India that focuses on producing intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. The company says it has developed eight chemistry competencies. The company's non-core assets as of December 31, 2021, stood at over ₹292 crore, while its current assets are worth ₹417 crore, totalling ₹709.5crore. The company's total equity as of December 31, 2021, stood at ₹360 crore, while its liabilities were ₹349.2 crore. Its revenue during the period stood at ₹449.3 crore, while its expenses were at over ₹338 crore. Profit for the nine months ending December 31, 2021, stood at ₹82.9 crore.