Ami Organics wants to become debt-free post the IPO, to cut dependence on China in the coming years

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Ami Organics wants to become debt-free post the IPO, to cut dependence on China in the coming years
  • Speciality chemicals company Ami Organics to open its IPO on September 1 and will close on September 3.
  • The company is looking to raise around ₹570 crore through the public listing.
  • The company is looking at paying off ₹140 crore debt from the IPO proceeds and become debt free.
Speciality chemicals firm Ami Organics is all set to open its around ₹570 crore initial public offering (IPO) for investors this week.

With the IPO proceeds, the Gujarat-based specialty chemicals company will pay off its debt worth ₹140 crore and become debt free, Naresh Patel, chief managing director of Ami Organics, said in an interview with Business Insider.

The company is looking to raise ₹200 crore through fresh issue of shares and 60.59 lakh shares through offer for sale by promoters.

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Overall, the company is aiming to raise ₹570 crore on the upper price band of ₹603 to ₹610 per share.

In the last few months, three specialty chemicals companies -- Clean Science and Technology, Tatva Chintan Pharma Chem and Chemplast Sanmar hit the market. Except for Chemplast Sanmar, the other two made a strong listing on the exchanges.

Ami Organics is a research and development driven manufacturer of speciality chemicals. The company manufactures different types of advanced pharmaceutical intermediates and active pharmaceutical ingredients (API) for new chemical entities, and material for agrochemicals and fine chemicals.

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The company is also working on cutting down raw material dependence on supplying countries like China. It imported 19.39% of total raw material purchase from China in FY21 as compared to 21.85% in FY20 and 22.11% in FY19.

“We have been strategically working on cutting down raw material dependence on one single country like China. I hope we can pull it down below two digits in the coming years,” said Patel.

Ami Organics wants to become debt-free post the IPO, to cut dependence on China in the coming years
Flourish chart/RHP data

The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e., anti-retroviral, anti-inflammatory, antipsychotic, anti-cancer, anti-Parkinson’s, anti-depressant, and anticoagulants.
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The company has three manufacturing facilities in Gujarat situated at Sachin, Ankleshwar and Jhagadia, with an aggregate installed capacity of 6,060 million tonnes per annum (MTPA).


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