The first day of September is coming up with a piece of good news for investors, two IPOs — Ami Organics initial public offering (IPO), Vijaya Diagnostics IPO are going to be open for the subscription from tomorrow till September 3.
Ami Organics is well-known for developing a wide array of pharma medicine across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. Surat based speciality chemical manufacturer Ami Organics has priced its issue in a band of Rs 603-610. Investors can bid for a minimum of 24 equity shares in multiples of 24 shares thereafter.
The grey market premium for Ami Organics IPO was Rs 50 according to market observers. “Currently grey market premium for Ami Organics is at Rs 50 which is 8.2 per cent of IPO price, so the grey market is not suggesting any big listing for Ami Organics IPO. Ami Organics IPO size is Rs 570 crore consists of fresh issues of 200 crore and an offer for sale of Rs 370 crore (60.6 Lk shares. The company has fixed the IPO price at price to earnings of 35.5 times of FY2021 earning, we believe that all the short-term positives have been priced in,” said Yash Gupta, Equity Research, Angel Brokings Ltd.
“Ami organic reported revenue growth of 41 per cent in FY2021 at ₹342 crores and profit after tax growth of 96 per cent in FY2021 at ₹54 crore. The company has a good return ratio, return on capital employed 25.25 per cent and return on net worth at 32.35 per cent. We have a neutral outlook for Ami organics IPO,” Gupta added.
On the other hand, Vijaya Diagnotics, fastest diagnostics chain in Southern India, has priced its initial public offering (IPO) between Rs 522 to Rs 533. Bids can be made for a minimum of 28 shares that has an application amount of Rs 14,868, and a maximum for 364 shares for Rs 193,284 as the maximum application amount. In both IPOs, the retail portion has an allotment of 35 per cent for the issue. The qualified institutional buyers (QIBs) were given a reservation of 50 per cent and the non-institutional investors (NIIs) have a 15 per cent reservation allotted to them.
The grey market premium of the Vijay Diagnostics Centre Limited IPO stood at Rs 35 as per information on IPO Watch. “We have seen a flat grey market premium for Ami Organics IPO since the price announcement, as per the different market news currently Grey market premium for Vijaya Diagnostics is at Rs 30, which is 5.6 percent of IPO price. Grey market is not suggesting any big listing for Vijaya Diagnostics IPO. The total IPO issue size is of Rs 1,894 crores, which consists of Offer for sale of 3.56 crore shares from promoters and investors,” said Yash Gupta, Equity Research Analyst, Angel Broking Ltd.
Vijaya Diagnostics holds a network of 80 diagnostic centers and 11 reference laboratories all across 13 cities and towns in India- including the National Capital region, Telangana, Kolkata and Andhra Pradesh.
Gupta throwing light on the company’s revenue said, “The company’s majority revenue comes from Hyderabad. Vijaya Diagnostic provides integrated services of pathology and radiology, company offers around 740 routine tests, 870 specialize pathology tests, 220 basic tests, and 320 advanced radiology tests. IPO has been priced at price to earnings of 64 times of FY2021 earning which is near around the listed players in India. We have a neutral outlook on Vijaya Diagnostic center IPO.”
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