Ami Organics IPO subscribed 64.5x, Vijaya 4.5x

The initial public offering (IPO) of specialty chemicals firm Ami Organics garnered nearly 65 times subscription, while that of Vijaya Diagnostic, among the largest diagnostic chains in southern India, garnered 4.5 times subscription. The IPO of Ami garnered 1.5 million retail application, while Vijaya saw less than 4 million.

The average applications for IPOs in July stood at 2.6 million, while that in August was about a million, said bankers. Experts said while the markets have jumped more than 10 per cent since August, the investor frenzy for IPOs seen in July has faded following a spate of poor listings.

Shares of previous four companies to make their stock market debut had dropped below their IPO price on listing day.

Market observers said investor sentiment could see a revival as a handful of good quality companies are looking to launch their IPOs later this month.

Ami Organics’ IPO comprised of Rs 200-crore fresh fund raise and Rs 370-crore secondary share sale. The price band for its IPO is Rs 603-610 per share. At the top-end the company will have a market cap of Rs 2,223 crore and is valued at 41.2 times its FY21 earnings.

Vijaya Diagnostic’s IPO is entirely a secondary share sale worth Rs 1,894 crore. Vijaya’s price band is Rs 522 to 531 per share. At the top-end, the company will have a market cap of Rs 5,414 crore and will be valued at 63.8 times its FY21 earnings.

Cumulative funds mobilised by eight IPOs that hit the market in August stood at Rs 17,841 crore, the most since November 2017.