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Below is quote on Should investors invest in Ami Organics Limited IPO? by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

Today is the last day for Ami Organics IPO, company has fix the price band of ₹603-₹610 with the issue size of ₹570 crores at upper price band. Ami organics is one of the leading Research & Development driven companies. Ami organics deals in different types of API and materials for agrochemical and fine chemicals. Ami Organics has 3 manufacturing facilities situated in Gujarat with an aggregate installed capacity of 6060 Mtpa.

Based on FY2021 numbers, the IPO is priced at a Price to Earnings of 35.6 times and EV/EBITDA of 25.7 times at the upper price band of the IPO, which is on the higher side, compared to the listed peer group. Company already has a higher market share of 70%-90% in Key API’s which will limit growth in near future. Given the expensive valuation, we have assigned a  NEUTRAL recommendation to the Ami Organics Limited IPO.

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