Speciality chemicals company Aether Industries on Monday said it has raised a little over ₹240 crore from anchor investors ahead of its initial share-sale, which opens for public subscription on Tuesday.
The company has allocated a total of 37,42,495 equity shares to anchor investors at ₹642 apiece, taking the transaction size to ₹240.26 crore, according to a circular uploaded on the BSE website.
A total of 25 funds have been allocated shares in the anchor round. This included Goldman Sachs, Nomura, SBI Mutual Fund (MF), Aditya Birla Sun Life MF, Kotak MF, Axis MF, IDFC MF and Tata MF.
The firm has fixed a price band of ₹610-642 per share and the issue will open for public subscription tomorrow, i.e, May 24 and conclude on May 26.
Half of the issue size has been reserved for qualified institutional investors, 35% for retail investors and the remaining 15% for non-institutional investors.
Investors can bid for a minimum of 23 equity shares and in multiples of 23 thereafter.
The firm has cut the size of the fresh issue of equity shares to ₹627 crore from ₹757 crore planned earlier following the pre-IPO placement. Apart from fresh issue, there will be an offer-for-sale (OFS) of up to 28.2 lakh equity shares by the promoter. At the upper end of the price band, the public issue is expected to fetch ₹808 crore.
Proceeds from the fresh issuance will be used to fund capital expenditure requirements for the proposed new project in Surat, Gujarat, fund working capital requirements and for payment of debt.
The shares will be offered at a face value of ₹10 each. Of the total IPO size - 50% of the portion will be allocated to qualified institutional buyers (QIBs), while 15% will be kept for non-institutional investors (NIIs), and the remaining 35% will be reserved for retail individual investors (RIIs).
HDFC Bank and Kotak Mahindra Capital firm are the book running lead managers to the issue. The shares of the company are expected to list on stock exchanges BSE and NSE on June 3, 2022. Link Intime India Private Ltd is the registrar of the issue.
Aether Industries is a speciality chemicals manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. As of March 31, 2022, the company's product portfolio comprises over 25 products.