Aether Industries’ stock is expected to go public tomorrow. Here’s what you need to know.

Analysts expect Aether Industries shares may list at a marginal premium

“Aether Industries got a better response compared to the recent IPOs. Experienced promoters, decent margins and impressive top-bottom line growth works in favour of the company. However, the issue was richly priced. Amid volatile market conditions, we may see the listing on a positive note and the issue may list at a marginal premium of around 3-5%,” said Abhay Doshi, founder of UnlistedArena.

Aether Industries’ shares are planned to begin trading on Friday, June 3, 2022. Its three-day initial public offering (IPO) was subscribed 6.26 times at the end, owing to considerable demand from institutional purchasers. Analysts predict that Aether Industries’ stock listing will be mild.

The initial share offering included a new issue of up to 627 crore in equity shares and an offer for sale (OFS) of up to 28,20,000 equity shares. The offer was accessible to the public from May 24-26, 2022, with a price range of 610-642 per share. Aether Industries collected little more than 240 crore from anchor investors ahead of its first public offering.

“Aether’s IPO received a good response from investors, especially on the institutional side, there is a lack of action in the grey market, so it is difficult to predict the exact listing price. However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects. Nevertheless, we expect a positive listing for the issue, and post listing, long-term investors may accumulate the stock,” said Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd.

Aether Industries is an Indian speciality chemicals firm that specialises in advanced intermediates and specialty chemicals that need complicated and distinct chemistry and technical core skills.

“Considering its dominant position in the select specialty chemicals and growth prospects from the end use applications, we feel the company has a buoyant outlook. However, a stretched valuation is a concern,” brokerage Choice Broking had said in the IPO note.

Speciality chemicals company Aether Industries’ three day initial public offer (IPO) was subscribed 6.26 times on the final day of its subscription, helped by a strong interest from institutional buyers. The issue was open from May 24 to May 26, 2022.