Ami Organics vs Vijaya Diagnostic IPOs: Vijaya Diagnostic IPO is 100 per cent OFS (Offer for Sale) while Ami Organics IPO aims to mobilize ₹200 crore from fresh issue and ₹369.64 from OFS
Ami Organics vs Vijaya Diagnostic IPOs: Public issues of Ami Organics and Vijaya Diagnostic became open for subscription yesterday and they will remain open for bidding till 3rd September 2021. By day one of bidding, Ami Organics IPO got subscribed 1.90 times while Bijaya Diagnostic IPO was subscribed 30 per cent. Vijaya Diagnostic IPO is 100 per cent OFS (Offer for Sale) while Ami Organics IPO aims to mobilize ₹200 crore from fresh issue and ₹369.64 from OFS. Meanwhile, grey market is also giving signals in regard to the respective IPOs as shares of Ami Organics are available in the grey market at a premium of ₹150 while Vijaya Diagnostic shares are trading at a premium of ₹15 in the grey market.
Here we list out important details in regard to Ami Organics and Vijaya Diagnostic IPOs:
Ami Organics IPO GMP today is ₹150 — ₹12 up from its yesterday's grey market premium of ₹162. According to market observers, Ami Organics IPO grey market premium has witnessed around 150 per cent rise ahead of the subscription opening date as it shot up from ₹50 to ₹125. After that Ami Organics IPO grey market premium went further up to the tune of ₹162. They said that attractive valuations and recent buzz in the chemical stocks are the major reason for such a robust jump in Ami Organics IPO GMP.
Vijaya Diagnostic IPO GMP today is ₹15 — ₹5 down from its yesterday's grey market premium of ₹20. As per the market observers, higher valuation and 100 per cent OFS may go against the public issue and grey market is signaling about the same as Vijaya Diagnostic IPO GMP has been oscillating around ₹15 to ₹20 for near one week.
- Subscription status
Ami Organics IPO was oversubscribed on the first day of bidding as it received application to the tune of 1.9 times of its offer.
Vijaya Diagnostic IPO got 30 per cent subscribed by day one of bidding.
Ami Organics promoters aim to mobilize ₹569.64 crore from this public issue out of which, they aim to raise ₹200 crore from fresh issue and ₹369.64 crore from OFS.
Vijaya Diagnostic promoters aim to raise ₹1,895.04 crore from this public issue and they aim to mobilize this entire fund through OFS.
- Allotment date
Tentative date for Ami Organics IPO allotment date is 8th September 2021.
Similarly, expected date for finalization of Vijaya Diagnostic share allotment is 8th September 2021.
- IPO lot size
One lot of Ami Organics IPO will comprise 24 shares of the company.
One lot of Vijaya Diagnostic IPO will comprise 28 shares of the company.
- IPO price band
Ami Organics promoters have fixed their initial offer's price band at ₹603 to ₹610.
Similarly, promoters of Vijaya Diagnostic promoters have fixed their issue price at ₹522 to ₹531.
- Investment limit
A bidder willing to invest in Ami Organics IPO can apply for a minimum of one lot and maximum 13 lots. that means one can invest in Ami Organics IPO with a minimum amount of ₹14,640 ( ₹610 x 24) while the maximum investment that a bidder can pump in this specialty chemical issue is ₹1,90,320 [( ₹610 x 24) x 13].
Similarly, a Vijaya Diagnostic IPO bidder can apply for minimum one lot and maximum 13 lots. That means one can invest in this IPO minimum ₹14,868 ( ₹531 x 28) and maximum ₹1,93,284 [( ₹531 x 28) x 13].
- Public issue listing
Tentative date for listing of both public issues is 14th September 2021. Both shares will be listed at NSE and BSE.
Speaking on Ami Organics vs Vijaya Diagnostic IPOs; Abhay Doshi, Founder at UnlistedArena.com said, "Amongst the two issues, Ami Organics looks clear winner. Vijaya Diagnostic, although, looking fundamentally strong may witness dull response due to valuations being on higher side."
Highlighting upon the fundamentals of Ami Organics; 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."
Asked about his views on Vijaya Diagnostic IPO, Arijit Malakar of Ashika Stock Broking said, "Vijaya Diagnostic is one of the largest integrated diagnostic players in Southern India, backed by private equity player Kedaara Capital. Company's operating and financial metrics are way ahead of other leading diagnostic players. Company commanded industry leading EBITDA Margin because of its operating leverage. Company's revenue realization per patient is around ₹1200 which is nearly 40 per cent higher from other players. At upper price band, company is valued at P/E multiple of 64x which is reasonable given the growth it has delivered in last 3 years, strong return ratios and debt free balance sheet."
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