Aether Industries beats market expectations to list at a 10% premium

Aether Industries beats market expectations to list at a 10% premium
  • Shares of Aether Industries listed at ₹706.15 while the price band was fixed at ₹610 - ₹642 per share.
  • The IPO witnessed decent demand from investors as its IPO was subscribed for 6.26 times the number of shares offered.
  • The market capitalisation of the company stood at ₹8,790 crore.
Shares of Aether Industries listed on the Indian exchanges at a 9.99% premium supported by positive market momentum.

The stock exchanges opened in the green as Sensex went up by over 500 points in the morning. The chemical manufacturer’s improving financial performance could also have aided the enthusiasm for the stock.

The unofficial grey market had expected the stock to rise by ₹15, but it gained by over four times to ₹64, beating even the positive estimates.

Aether Industries’ shares listed at ₹706.15, while its IPO price band was ₹610 - ₹642 per share. Its IPO was subscribed 6.26 times.

Go long and buy more say investors
Analysts had expected this positive listing based on the good response the IPO received, especially the institutions. Further, it asks the investors to go ‘long’ on the stock and buy more. This is in spite of the fact that the issue was priced at a price-to-earnings ratio of 72:30, based on annualized FY22 numbers.


“We believe that the company deserves this premium multiple due to its phenomenal growth prospects. Nevertheless, we expect a positive listing for the issue, and post listing, long-term investors may accumulate the stock,” said Aayush Agrawal, senior analyst at Swastika Investmart.

The company's profitability has been rising consistently in the last three years as it has made a profit of ₹71 crore in FY21 as compared to ₹23 crore in FY19 along with steady growth in revenue.

Aether Industries — which is based out of Surat, Gujarat — focuses on producing advanced intermediates and specialty chemicals involving complex, differentiated chemistry and technology core competencies.

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