About the Company:
AMI Organics Ltd is one of the leading research and development (“R&D”) driven manufacturers of specialty chemicals with varied end usage, focussed towards the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”).
Company is one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban.
The Pharma Intermediates manufactured by the company, find application in certain high-growth therapeutic areas including anti-retroviral, antiinflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant and anti-coagulant, commanding significant market share both in India and globally.
since inception company has developed and commercialized over 450 Pharma Intermediates for APIs across 17 key therapeutic areas .
Recent acquisition by the Company:
Company has recently completed the acquisition of two additional manufacturing facilities operated by GOL (Gujarat Organics Limited).
This acquisition has added preservatives (parabens and parabens formulations which have end usage in cosmetics, animal food and personal care industries) and other specialty chemicals (with end usage in inter alia the cosmetics, dyes polymers and agrochemicals industries) in our existing product portfolio, which command significant market share globally in the supply of certain paraben derivatives.
The Acquisition is in line with company’s inorganic growth strategy of foraying further into the specialty chemicals sector and company believes that it will enable company to significantly diversify the existing product portfolio, with an objective of attaining inorganic expansion of the business.
Company’s Business Verticals:
- Pharma Intermediates Business.
- Specialty chemicals Business.
- Custom Manufacturing Business.
Revenue Breakup of Business verticals:
Company’s Customers:
Company supplies the products to more than 150 customers (including international customers) directly in India and in 25 countries overseas, using a distributorship network in certain cases.
Some of the domestic customers include Laurus Labs Ltd, Cadila Healthcare Ltd and Cipla Ltd.
some of the key export customers include Organike s.r.l.a Socio Unico, Fermion Oy, Fabbrica Italiana Sintetici S.p.A, Chori Co. Ltd., Medichem S.A. and Midas Pharma GmbH.
Company’s Export Business:
Along with the domestic market, company supplies Pharma Intermediates used for manufacturing of APIs and NCEs to various multi-national pharmaceutical companies which cater to the large and fast-growing markets of Europe, China, Japan, Israel, UK, Latin America and the USA.
In the Fiscals 2021, 2020, and 2019, company’s revenue from exports contributed 51.57%, 45.89% and 49.61%, respectively of total revenue from operations.
Company’s revenues from exports have grown at a CAGR of 21.84% between Fiscals 2019 and 2021.
Company’s Manufacturing facilities:
Company has three manufacturing units located at:
- GIDC, Sachin, Gujarat, spread over an aggregate land area of 8,250 sq. mtrs. with an installed capacity of 2,460.00 MTPA.
- GIDC, Ankleshwar Industrial Estate, Gujarat, spread over an aggregate land area of 10,644 sq. mtrs. with an installed capacity of 1,200.00 MTPA.
- GIDC Industrial Estate, Jhagadia, Gujarat, spread over an aggregate land area of 56,998.35 sq. mtrs. with an installed capacity of 2,400.00 MTPA
Of the above, the Ankleshwar Facility and Jhagadia Facility have been recently acquired by company from GOL.
Capacity and Capacity Utilization:
1)In Fiscal 2021 one new unit with capacity of 351MTPA were installed on November 1, 2020.
(2)In Fiscal 2020 one unit with capacity of 597 MTPA were demolished on December 31, 2019.
Management Team:
- Mr. Nareshkumar Ramjibhai Patel (Designation: Executive Chairman and Managing Director)
- Mr. Chetankumar Chhaganlal Vaghasia (Designation: Whole-time Director)
Objectives of the Issue:
Offer for Sale: (Rs. 369 cr)
- The proceeds of the Offer for Sale shall be received by the Selling Shareholders. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 200 cr)
- Repayment/prepayment of certain financial facilities availed by the Company.
- Funding working capital requirements of the Company.
- General corporate purposes.
Positives for the Company:
Positioning in Pharmaceuticals Intermediate Product Segment.
- Company is an organized developer and manufacturer of a series of advance pharmaceutical intermediates for the generic APIs and NCE in select high-growth therapeutic areas.
- Company is well positioned to capitalize on the market opportunities as a result of their portfolio and scale of operations.
Extensive geographical presence and diversified customer base with long standing relationships.
- Company caters to domestic and certain multi-national pharmaceutical companies which cater to the large and fast growing markets of Europe, China, Japan, Israel, UK, Latin America and the USA.
- In Fiscals 2021, 2020 and 2019, company’s revenue from exports contributed 51.57%, 45.89% and 49.61%, respectively of the revenue from
operations. - Company supplies the products to 25 countries and have long standing relationships with numerous domestic and global pharmaceutical companies.
High entry barriers in the chemicals manufacturing industry in which the Company operates.
- Company manufactures and market advanced pharmaceutical intermediates used for manufacturing of APIs and NCEs.
- This pharmaceutical intermediates business has high entry barriers because of long gestation period to be enlisted as a supplier with the customers, particularly with the customers in US and European countries, which requires suppliers to adhere to strict compliance requirements, leading to a high regulatory gestation period.
- There are high entry barriers also because of involvement of complex chemistries in the manufacturing process, which is difficult to commercialize on a large scale.
Company has established itself as a trusted and reliable supplier.
- Company supplies advanced pharmaceutical intermediates used for manufacturing of APIs and NCEs to over 150 customers in India and 25 countries overseas and has established itself as a trusted and reliable supplier of advanced pharmaceutical intermediates used for manufacturing of APIs and NCEs, globally.
Financials of the Company: (Consolidated)
| (in Crores) | FY 15 | FY 16 | FY 17 | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|---|---|---|
| Revenue | 111.76 | 156.57 | 160.47 | 191.17 | 238.8 | 242.4 | 341.9 |
| Net Profit | 4.0 | 12.65 | 12.04 | 18.49 | 23.2 | 27.4 | 53.9 |
Note: The revenue from operations for Fiscals 2021, 2020 and 2019 does not include revenue of the business of GOL (Gujarat Organics Limited) which was recently acquired as the Acquisition was completed on March 31, 2021.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st September 2021 |
| Issue Closes on:. | 3rd September 2021 |
| Issue Price | Rs. 603 – 610 |
| Face Value | Rs.10 |
| Minimum Lot | 24 Shares |
| Minimum Investment | Rs. 14,640 |
| Retail Category Allocation | 35% |
| Issue Constitutes | 25.62% |
| Issue Size | Rs.569 cr ($ 76 million) |
| Market Cap | Rs.2222 cr ($ 300 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 60,59,600 |
| Equity Shares Offered (Fresh) | 32,78,688 |
| Total Equity Shares Offered (OFS + Fresh) | 93,38,288 |
| Equity Shares Prior to the Issue | 1,05,00,000 |
| Equity Shares after the Issue | 1,40,00,000 |
Important Dates:
| Finalization of Basis of Allotment | On or Before 8th September 2021 |
| Initiation of Refunds | On or Before 9th September 2021 |
| Credit of Equity Shares: | On or Before 13th September 2021 |
| Listing Date: | On or Before 14th September 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 18,54,166 | 1.39 | 1.43 | 86.64 |
| NII | 14,06,453 | 0.40 | 1.51 | 154.81 |
| Retail | 32,81,723 | 2.82 | 6.32 | 13.36 |
| Employee | ———- | —— | —- | —- |
| TOTAL | 65,42,342 | 1.90 | 3.90 | 64.54 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 17.14 | 35.58 | 32.35% | 52.99 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| AMI Organics Ltd Plot No. 440/4, 5 & 6 Road No. 82/A, G.I.D.C, Sachin Surat – 394 230 Gujarat, India Tel.: (+91) 261 2397193 Facsimile: (+91) 261 2398436 Website: www.amiorganics.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg, Vikhroli (West) Mumbai – 400 083, Maharashtra, India Telephone: +91 22 4918 6200 E-mail: amiorganics.ipo@linkintime.co.in Website: www.linkintime.co.in |
