Stock market: This chemical company of Gujarat has a stellar performance, shares listed at a premium of 10 percent

Gujarat-based chemical company Advance Intermediates and Ather Industries, which produces specialty chemicals, started well in the stock market. The share of Ather Industries was listed at Rs 706.15 at a premium of 10 per cent on the BSE. Whereas the listing of the stock on NSE was done at a level of Rs 704 at a premium of 9.66 percent. The stock has risen after the listing.

Let us tell you that the IPO of Ather Industries opened between May 24 and 26 and was subscribed 6.26 times. The price band of the IPO was Rs 642 per share, which rose 21 per cent to an all-time high of Rs 776.75 on the BSE. The company raised Rs 808.04 crore through IPO. While 50 per cent of the issue was reserved for Qualified Institutional Buyers (QIBs). While 35 per cent and 15 per cent were reserved for retail investors and non-institutional investors, respectively. The issue price band was Rs 610-624 per share. The company had raised Rs 240 crore from anchor investors. The public offer included a fresh issue of Rs 627 crore and an offer for sale of Rs 181 crore. After the listing, this company joined the list of companies like Clean Science and Technology, Navin Fluorine International, Vinati Organics, PI Industries and Fine Organic Industries.

The company will use the fresh issue proceeds to meet capital requirements for greenfield projects. Apart from this, outstanding will be done for borrowing and other corporate purposes. The company’s products are in pharmaceutical, agrochemicals, material science and coatings.

Significantly, after the listing, the company’s stock saw a great rise. Ather Industries’ net profit increased from 14.30 per cent to 18.45 per cent in the nine months ended December 31, 2021. However, the company’s revenue declined by 49.04 per cent in the 12 months ended March 2021. The company’s revenue in the financial year 2020 was 50.02 percent.

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