Ambani Organics Ltd

Ambani Organics

About the Company:

Ambani Organics Limited is a manufacturer, processor, importer, supplier and exporter of water based speciality chemicals used in Paper Industry, Paint Industry, Textile Industry, Carpet Industry, Adhesive Industry, etc.

Company was incorporated in the year 1985 and is engaged in the business of specialty chemicals for more than 3 (three) decades.

Company is an “ISO 9001:2015 – Quality Management System” certified company and they have also obtained GOTS (Global Organic Textiles Standards) certification for some of their textile industries chemicals.

Company earns revenue from manufacturing varied speciality chemicals catering to various industries. Company is engaged in manufacturing of chemicals such as Textile Auxiliaries, Acrylic Polymers, Binders and Paint Driers.

Company has 2 (two) manufacturing facilities in Maharashtra located adjacent to each other with one at Plot No. N-44, MIDC, Tarapur Boisar, Thane, Maharashtra – 401506 and the second manufacturing facility at Plot No. N-43, MIDC, Tarapur Boisar, Thane, Maharashtra – 401506.

Company has a dedicated in-house Research & Development and Quality Assurance/Quality Control Team which undertakes rigorous testing and quality management. Company’s R&D Centre is located at Plot No. N-55, MIDC Tarapur Boisar, Thane, Maharashtra.


Company’s Overview: 

company Overview


Company’s Proposed Capacity Utilization: 

capacity utilization


Management Team:

  1. Mrs. Apooni Shah (Designation: Chairman and Whole Time Director)
  2. Mr. Rakesh Shah (Designation: Managing Director)
  3. Mr. Sharad Kothari (Designation: Non-Executive Non-Independent Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Mr. Rakesh Shah 34,64,721 10.72
Mrs. Apooni Shah 3,14,738 10.51


Positives for the Company:

Diversified Product Portfolio Catering to Customers from Varied Industries.

Company offers a range of over 100 speciality chemicals under the “AOPL” brand, which are used in various industries and for various applications.

Some of the industries they cater to are (a) Paper industry, (b) Textile Industry, (c) Adhesive Industry, (d) Paint and Construction Industry and (d) Carpet Industry.

Company’s products include binders, PVP Emulsions, Acrylic Emulsions, Textile Auxiliaries, Detergent formulation, Acrylic Polymers, Adhesives, Styrene Acrylic, Defoamer, Dispensers, Butyl Acrylate based Terypolymer, Thickeners, Paint Driers etc.


Objectives of the Issue:

Offer for Sale: (Around Rs. 0.66 cr)

Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.

Fresh Issue: (Around Rs. 8.37 cr)

Funding Long Term Working Capital Requirement.
Funding expenditure for General Corporate Purposes.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Working Capital requirements 7.24
General Corporate Expenses 0.58
Net Proceeds 7.83 cr


Financials of the Company:

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 34.19 37.65 32.91 52.89 65.58
Net Profit 0.32 (-2.43) (-0.38) 0.79 1.91


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Ambani Organics Limited 10 5.02 13.15 32.05% 15.45
Nikhil Adhesives Limited 10 7.15 30.07 8.15% 76.08


IPO Details:

Details Info
Issue Opens on 6th July 2018
Issue Closes on:. 10th July 2018
Issue Price Rs.66
Face Value Rs.10
Minimum Lot 2000
Minimum Investment Rs.1,32,000
Issue Constitutes 32.50%
Issue Size Rs.9.03 cr
Market Cap Rs.33.52 cr
Listing at NSE SME
Equity Shares Offered (OFS) 1,00,000
Equity Shares Offered (Fresh) 12,68,000
Total Equity Shares Offered 13,68,000
Equity Shares Prior to the Issue 38,10,659
Equity Shares after the Issue 50,78,659


Important Dates:

Finalization of Basis of Allotment on or Before 13th July 2018
Initiation of Refunds on or Before 16th July 2018
Credit of Equity Shares: on or Before 17th July 2018
Listing Date: on or Before 18th July 2018


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
5.02 13.15 32.50% 15.45


Knowledge Corner: (Click on the Link)

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NSE & BSE Holiday List For the Year 2018


Company Contact Info:
Ambani Organics Ltd
N 44, MIDC, Tarapiur,
Boisar, Thane Maharashtra 401506.
Tel No: +91 – 22 – 2683 3778
Fax No: +91 – 22 – 2683 3778


IPO Registrar Info:
21, 25, 33, Shakil Niwas, Opposite Satya Sai Baba Mandir,
Mahakali Caves Road, Seepz, Andheri (East),
Mumbai- 400093, Maharashtra
Tel No.: +91 – 22 – 2820 7203 / 04 / 05;
Fax No.: +91 – 22 – 2820 7207;


Lead Manager to the Issue:
60, Khatau Building, Ground Floor,
Alkesh Dinesh Modi Marg, Fort,
Mumbai – 400 001, Maharashtra
Tel No.: +91 – 22 – 6216 6999
Fax No.: +91 – 22 – 2263 0434