Advanced Enzyme Technologies has filed its red herring prospectus (RHP) for its upcoming IPO which will open for subscription on 20 July and will close on 22 July. In the prospectus filed with capital market regulator SEBI, the Thane-based company said it will raise INR500 million (INR50 crore) by issuing new shares while existing shareholders will sell 4,034,470 shares through an offer for sale (OFS). Pricing of Advanced Enzyme Technologies IPO will be finalized close to the offer open date.
Out of the money raised by the company, INR400 million (INR40 crore) will be used for repayment / pre-payment of certain loans availed by its fully-owned subsidiary Advanced Enzymes USA. Through the OFS, promoter group will sell 2.68 million shares while 517,200 shares will be offered by various Kotak private equity (PE) entities. Kotak PE owns nearly 4.75% equity stake in the company while promoters hold 63.11%.
Retail investors have been allocated 35% of the total shares offered in Advanced Enzyme Technologies IPO.
Advanced Enzyme is India’s largest enzyme company and is engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes. The company claims to be a fully integrated enzyme manufacturing company and ranks among the top 15 global companies in terms of enzyme sales. In the domestic market, it has the second highest market share after Novozymes which is the global leader in the business. Advanced Enzyme operates in two primary business verticals – Healthcare & Nutrition (87.6% of total revenues in FY 2016) and Bio-Processing (12.4% of total revenues in FY2016). The company offers these products to its global clientele of more than 700 customers spanning presence across 50 countries worldwide.
Financials – highlight of Advanced Enzyme Technologies IPO
In terms of financial performance, the company impresses with a consistent top line growth in the last four years. As indicated in the table below, this translates into a compounded average growth rate (CAGR) of 14.4%. Profits have also followed the same trend, with PAT CAGR of 23.9%. Promoted by Vasant Laxminarayan Rathi and Chandrakant Laxminarayan Rathi, the company has consistently made profits and paid dividends since 1997.
Advanced Enzyme’s consolidated financial performance (in INR crore)
|Profit after tax||33.3||49.2||20.1||50.1||78.4|
Once the company finalizes the IPO price band, we will publish our review of Advanced Enzyme Technologies IPO in the coming days. In the meantime, head to this discussion page on Advanced Enzyme IPO to stay updated with the latest discussion and grey market activity.