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Shares of Aether Industries made positive stock market debut on Friday with the stock listing at 704 apiece on the NSE, a premium of more than 9% as compared to its IPO issue price of 642 per share. On the BSE, Aether Industries shares started trading at 706, later hitting the upper circuit level on its first day.

The initial public offer (IPO) of specialty chemicals company Aether Industries was subscribed 6.26 times on the final day of its subscription, helped by a strong interest from institutional buyers.

The initial share sale had a fresh issue of up to 627 crore and an offer for sale (OFS) of up to 28,20,000 equity shares. The offer, which was open for public subscription from May 24-26, 2022, had price range at 610-642 per share. Aether Industries raised a little over 240 crore from anchor investors ahead of its public issue.

Proceeds from the fresh issuance will be used to fund capital expenditure requirements for a proposed new project in Surat, Gujarat, fund working capital requirements and for payment of debt.

Aether Industries is a specialty chemicals manufacturer in India, focused on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies.

It started with a research and development (R&D) unit in 2013 and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments.

The company's operating revenue grew to 450 crore in FY21, as compared to 302 crore in FY20, while its net profit climbed to 71 crore in FY21, from 40 crore in FY20.

“Considering its dominant position in the select specialty chemicals and growth prospects from the end use applications, we feel the company has buoyant outlook. However, a stretched valuation is a concern," brokerage Choice Broking had said in the IPO note.

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