Ami Organics vs Vijaya Diagnostic IPOs: What GMP signals ahead of share allotment
The initial public offerings (IPOs) of specialty chemical manufacturer Ami Organics and healthcare chain Vijaya Diagnostic Centre opened on September 1 and the three-day issue closed on September. Ami Organics was subscribed 64.54 times on the closing day of subscription whereas Vijaya Diagnostic was subscribed 4.54 times.
As per market observers, Ami Organics grey market premium (GMP) remains strong ahead of its share allotment at ₹160 whereas Vijaya Diagnostic shares have slipped to a discount of ₹5 in the grey market today.
The price band of the three-day share sale of Ami Organics was fixed at ₹603-610 per share. The public issue comprised fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of up to 6,059,600 shares by promoter and existing shareholders. The company will utilise ₹140 crore from the IPO proceeds towards repayment of certain debt and ₹90 crore for funding working capital requirements.
Ami Organics is one of the leading R&D driven manufacturers of specialty chemicals with varied end usage, focussed towards the development and manufacturing of pharma intermediates for regulated and generic APIs (active pharmaceutical ingredients) and NCE (new chemical entity) and key starting material for agrochemicals and fine chemicals.
Vijaya Diagnostic Centre offers pathology and radiology testing services through 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, as well as the National Capital Region and Kolkata. ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Company were the managers of the offer.
The ₹1,895 crore initial public offer was entirely an offer for sale of up to 3,56,88,064 equity shares. The price range for the offer was at ₹522-531 per share.
Vijaya Diagnostic and Ami Organics shares are expected to list on September 14 on the leading stock exchanges BSE and NSE.