The shares of Aether Industries Limited is all set to debut on the stock market on Friday. Aether stock will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on June 3. Aether Industries initial public offering (IPO) received a decent response from the investors during its subscription period. The public issue was booked 5.26 times on the final day of subscription. “Aether Industries got a better response compared to the recent IPOs,” said Abhay Doshi, founder at UnlistedArena.com. Strong interest from the institutional investors, decent grey market premium and experience promoters — market observers expect a positive listing for Aether Industries IPO on Friday.
Aether Industries opened its initial public offering from May 24 to May 26. The price band has been set at Rs 610 to Rs 642. Aether IPO comprised a fresh issue of Rs 627 crore and an offer-for-sale (OFS) of 28,20,000 equity shares. Promoter Purnima Ashwin Desai offloaded the stake through the OFS.
Aether Industries IPO received bids for 5.85 crore shares against 93.56 lakh shares that were on offer, according to the data available by National Stock Exchange (NSE). The portion set aside for qualified institutional buyers (QIB) were subscribed 17.57 times, while the quota allocated for non-institutional investors (NII) received 2.57 times subscriptions. The category reserved for retail individual investors (RII) was subscribed 1.14 times.
The unlisted shares of Aether Industries were commanding a premium of Rs 23 in the grey market ahead of the listing, according to the market observers.
Aether IPO Valuation
On valuation of the public issue, Amarjeet Maurya, AVP – mid caps, Angel One Ltd said, “Aether Industries has received a decent response from investors. In terms of valuations, the post-issue TTM P/E works out to 75.6x (at the upper end of the issue price band), which is reasonable considering Aether Industries’ historical top-line & bottom-line CAGR of 50 per cent and 75 per cent respectively over FY19-21. Further, Aether Industries has a diversified customer base, strong financial track record and higher ROE. Considering all the positive factors, we believe this valuation is at reasonable levels.”
“Thus, we are positive on the IPO for the long term horizon,” he added.
Aether IPO Listing Expectation, Strategy
“Experienced promoters, decent margins and impressive top-bottom line growth works in favour of the company. However, the issue was richly priced. Amid volatile market conditions, we may see the listing on a positive note and the issue may list at a marginal premium of around 3-5 per cent,” said Doshi.
“Considering the turbulence in the global equity market and higher demanded valuations, we are not anticipating any significant listing gains from these IPOs. We had assigned “subscribe with caution” rating for these IPO. Investors who have received the allotment are recommended to take an exit on listing,” said Rajnath Yadav, research analyst, Choice Broking.