Ami Organics to launch IPO in early December

Pharmaceutical intermediate manufacturer Ami Organics is planning to launch its Initial Public Offering (IPO) in the first-half of December. According to a report by the Hindu Business Line, the company will finalize the price band in the first week of December.

According to the draft prospectus, the company plans to sell 3,500,000 shares and IPO proceeds will be used towards repayment and prepayment of borrowings (INR33 crore), funding the long term working capital (INR45 crore), and capital expenditure for development of a new research & development (R&D) facility in the vicinity of its manufacturing facility (INR19.2 crore).

IPO Central learns that the company may raise anywhere in the range of INR1,200 – 1,300 crore.

As of 30 June 2018, Ami Organics had INR37.21 crore in secured borrowings and thus, the IPO will lead to a substantial elimination of interest-bearing debt from the company’s books.

The company is promoted by Girishkumar Limbabhai Chovatia, Nareshbhai Ramjibhai Patel and Chetankumar Chhaganlal Vaghasia. Ami Organics IPO will be managed by ITI Capital.

Ami Organics: Pharma intermediates

Established in 2004, Ami Organics has developed and manufactured approximately 250 pharmaceutical intermediates. The installed capacity of its manufacturing plant in Surat, Gujarat has been recently increased from 150 MT to 600 MT.

The company supplies its products to more than 180 customers directly and through its network of distributors in the overseas markets. Some of its key customers include Organike S.R.L.A. Socio Unico, Fermion Oy, Glenmark Pharmaceuticals Ltd., A.R.Z. Chemicals International Trade Ltd., Magle Chamoswed AB and Natco Pharma Limited.

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The company has also made an investment in a joint venture, Ami Onco-Theranostics LLC, which is engaged in the development of new photosensitizing compounds used to identify and treat cancer through patent and patent applications and additional know-how regarding the same. AOL has till now developed three products out of which one is at trail phase-2 and two products are at phase-3 trail (last) and has also filed three (3) process patents across various jurisdictions.

Ami Organics: Strong financial performance

The company has posted strong performance on most financial parameters in the recent years. Its consolidated revenues stood at INR191.2 crore in FY2018 while earnings jumped 61.2% to INR18.7 crore. Since the business largely caters to global customers, the company’s international operations contributed nearly 53% of revenues in FY2018.

Ami Organics’ consolidated financial performance (in INR crore)

FY2016 FY2017 FY2018
Total revenues 156.6 160.5 191.2
Total expenses 138.9 141.8 162.8
Profit after tax 12.6 11.6 18.7
Net margin (%) 8.0 7.2 9.8
Ami Organics to launch IPO in early December
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Krishna Bagra

Coming from a family of investors and financial analysts, Krishna learnt wading through regulatory filings pretty early in her career. At IPO Central, Krishna plays twin roles of contributor and head of research desk. She can also be reached at +krishnabagra .

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