Sunday, August 29, 2021

IPO Next Week - Ami Organics, Vijaya Diagnostic to Open for Subscription

The two companies are all set to open for subscription on 1st September 2021. Specialty chemical manufacturer Ami Organics and healthcare chain Vijaya Diagnostic will hit the primary market via their initial public offering on September 1, Wednesday that will conclude on September 3, Friday. The two companies are going to raise a total of ₹2,465 crores.

Ami Organics IPO: The company to raise ₹569.64 crores via initial public offerings. The IPO comprises ₹200 crores of fresh issue and ₹369.64 crores of an offer for sale of 6,059,600 equity shares of their existing share holders and promoters at a price band of ₹603-610 per share.

Ami Organics

They are one of the leading manufacturers of specialty chemicals and dealing in Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) and materials for agrochemical and fine chemicals.

As compared to peer groups we can expect a good listing on the cards with short-term gain for the investors. The financial results look strong with ₹53.99 PAT in 2021 against ₹27.47 in 2020, around 97% growth in terms of profit. Investors will surely look at the financial numbers and the company overview before applying.

Vijaya Diagnostic IPO: The company to raise ₹1,895 crores via initial public offerings. The IPO comprises a full amount of an offer for sale of 35,688,064 equity shares of their existing shareholders and promoters at a price band of ₹522-531 per share. They are offering a ₹52 discount for their employee share quota.

Vijaya Diagnostic

Vijaya Diagnostic is one of the largest diagnostic center chains working in the South Indian region. They have good footfall across 13 cities with over 2200 professionals of radiologists, pathologists, and healthcare professionals working with their company.

VDC is looking strong on its financial results. The company reported ₹84.91 crores of PAT in 2021 compared to ₹62.51 crores PAT in 2020 the 36% jump in 2021. The revenues show the incremental increase YOY as the profit also shows the same trend.

As per the current market trend, it looks positives as per the stock-specific and the IPO market boomed in the last few months. We have witnessed most of the IPOs listing in premium while few are trading below their IPO price like CarTrade, Windlas, and Chemplast. As per the market speculations, one should apply the IPOs with the long-term views as we have seen some lower trades in the IPO grey market. Investors should look at the numbers of QIB and NII subscriptions and based on the same subscribe for the IPOs. Both companies look good but it might be affected due to less demand in grey market or the market conditions.