Ami Organics IPO: What GMP signals about the public issue2 min read . Updated: 28 Aug 2021, 03:59 PM IST
- Ami Organics IPO GMP today is ₹68 against its issue price band of ₹603 to ₹610 per equity share
Ami Organics IPO (Initial Public Offering) will open for subscription on 1st September 2021 and it will remain available for bidding till 3rd September 2021. ₹569.64 crore public issue will comprise fresh issues aggregating up to ₹200 crore and Offer for Sale (OFS) aggregating up to ₹369.64 crore. Though there are two more trade sessions left before opening of this public issue, grey market has started giving signals about the upcoming IPO. According to the market observers, Ami Organics IPO GMP today is ₹68 against its issue price band of ₹603 to ₹610 per equity share.
Ami Organics share price in grey market
As per the market observers, shares of Ami Organics are trading today at a premium of ₹68 in the grey market. They said that Ami Organics shares became available for trade in the grey market on Thursday at a premium of ₹58 per equity share. On Friday, it nudged ₹2 and hit ₹60. Observers said that continuous rise in the Ami Organics IPO GMP reflects positive sentiment for the public issue in the grey market.
What this GMP mean
Market observers said that grey market premium means expected listing gain in regard to the particular public issue. As Ami Organics IPO GMP today is ₹68, it simply mean the grey market is expecting Ami Organics IPO listing at around ₹678 ( ₹610 + ₹68) — means grey market is expecting double digit premium from the public issue while there are two more trade sessions left before the IPO becomes available for subscription.
Speaking on the fundamentals supporting Ami Organics IPO; Arijit Malakar, Head of Research at Ashika Stock Broking said, "Ami Organics is a R&D driven pharma intermediates & specialty chemicals manufacturers with Pharma intermediates account nearly 88 per cent of revenue while specialty chemical account 5 per cent. Company has 400 plus products in its portfolio across 17 key therapeutic areas. It has diversified portfolio and is not dependent on single product or any single customers. Its customers include both domestic and international companies with export accounts more than 50 per cent of revenue. With revenue base of ₹300 crore it is small compared to other large listed pharma API players. Further, the company is valued P/E multiple of 41x post issue equity shares against industry average of 45x, which is fairly valued. Thus, leaves little room for any meaningful upside from IPO price. However, pharma API sector has good traction and one can look this company at better entry point post listing."
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