Time, Listing Price, Strategy, Aether Stock Price

Shares of Aether Industries Limited are set to make their trading debut on Friday. Aether stock will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) at 10 a.m. on June 3. Aether Industries’ initial public offering (IPO) received a decent response from investors during its subscription period. The public issue was booked 5.26 times on the last day of subscription. “Aether Industries has gotten a better response compared to recent IPOs,” said Abhay Doshi, founder of UnlistedArena.com. Strong interest from institutional investors, a decent premium from the gray market and experienced promoters – market watchers are expecting a positive rating for Aether Industries’ IPO on Friday.

Aether Industries opened its initial public offering from May 24 to May 26. The price range was set at Rs 610 to Rs 642. Aether IPO included a new issue of Rs 627 crore and an offer to sell (OFS) of 28,20,000 shares. Purnima promoter Ashwin Desai offloaded the stake via the SFO.

The Aether Industries IPO received bids for 5.85 crore shares against 93.56 lakh shares that were on offer, according to data available from the National Stock Exchange (NSE). The share reserved for qualified institutional buyers (QIB) was subscribed 17.57 times, while the share reserved for non-institutional investors (NII) received 2.57 times subscriptions. The category reserved for retail individual investors (RII) was subscribed 1.14 times.

Unlisted shares of Aether Industries commanded a gray market premium of Rs 23 before listing, according to market watchers.

Aether IPO Assessment

Commenting on the valuation of the public offering, Amarjeet Maurya, AVP – mid caps, Angel One Ltd said, “Aether Industries has received a decent response from investors. In terms of valuations, the post-issue TTM P/E stands at 75.6x (at the upper end of the issue price range), which is reasonable given the historical CAGR of the figure. business and net income of Aether Industries by 50%. and 75% respectively during fiscal years 2019-21. Additionally, Aether Industries has a diverse customer base, strong financial track record, and higher ROE. Considering all the positive factors, we believe this valuation is at reasonable levels. »

“So we’re positive on the long-term IPO,” he added.

Aether IPO Listing Expectation, Strategy

“Experienced promoters, decent margins and impressive growth in profitability work in the company’s favor. However, the issue was expensive. In volatile market conditions, we could see the listing on a positive note and the issue could be listed at a marginal premium of around 3-5%,” Doshi said.

“Given the turmoil in the global equity market and the higher valuations demanded, we do not expect material listing gains from these IPOs. We had assigned a rating of ‘subscribe with caution’ to these IPOs. Investors who have received the allocation are recommended to exit the listing,” said Rajnath Yadav, research analyst at Choice Broking.

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Eleanor C. William