Ami Organics' Rs 570 crore IPO kicks off: Should you apply?

At the higher price band of Rs 610, Ami Organics is demanding a P/E multiple of 41.2x (to its FY21 EPS of Rs 14.8), which is at discount to the peer average of 48.3x

The three-day initial public offer (IPO) by specialty chemicals manufacturer Ami Organics (AOL) kicked off on Wednesday. The IPO, which is a mix of an offer for sale of Rs 370 crore and a fresh issue worth Rs 200 crore, is priced in the band of Rs 603 - 610 per share. Investors can apply for the issue in the multiples of 24 shares are thereof. The company plans to utilise the proceeds raised from the fresh issue for repayment or prepayment of certain financial facilities, funding working capital requirements and general corporate purposes. On Tuesday, the firm raised Rs