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Below is quote on Grey Market Premium for Ami organics IPO by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

What's Grey Market premium suggesting for Ami Organics?

Ami Organics IPO to open on 1st September 2021 with an issue size of Rs.570 crores, the price band of the IPO is Rs.603-610 and a lot size of 24 shares. We have seen some fluctuations in the grey market premium for Ami Organics IPO, as per the different market news currently Grey market premium for Ami organics is at Rs.50 which is 8.2% of IPO price, so the grey market is not suggesting any big listing for Ami Organics IPO.  Ami Organics IPO size is Rs.570 crores consists of fresh issues of 200 crores and an offer for sale of Rs.370 crores (60.6 Lk shares. The company has fixed the IPO price at price to earning of 35.5 times of FY2021 earning, we believe that all the short-term positives have been priced in. 

Ami organics is a Gujarat based specialty chemical manufacturer, deals in different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) and materials for agrochemical and fine chemicals. Ami Organics has 3 manufacturing facilities with an aggregate installed capacity of 6060 Mtpa. The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant. Ami organic reported revenue growth of 41% in FY2021 at ₹342 crores and profit after tax growth of 96% in FY2021 at ₹54 crores. The company has a good return ratio, return on capital employed 25.25% and return on net worth at 32.35%. We have a neutral outlook for Ami organics IPO.

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