Quote on Spike in Grey Market Premium of AMI Organics Limited IPO by Mr. Yash Gupta, Angel Broking Ltd
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Below is quote on Spike in Grey Market Premium of AMI Organics Limited IPO by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd
We have seen a sudden spike in the Grey Market Premium of Ami organics limited in last 2 days, IPO opens on 1st of September 2021 and on the first day IPO received a good response from Retail investors as well as from Qualified investors. On the first day itself, IPO got fully subscribed, by the end of the first day IPO oversubscribed by 190%. As per the different market news currently, the grey market premium of Ami organics is at ₹120-₹150, which has increased from ₹45 before the IPO opens.
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. The company already has a higher market share of 70%-90% in Key API’s which will limit growth in the near future. Given the expensive valuation, we assigned a NEUTRAL recommendation to the Ami Organics Limited IPO.
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