Jobaaj Stories
Aether Industries was the newest addition to the Indian bourses as it debuted on the last trading day of the week. The stock saw a spectacular debut as it surged over 20% on its opening day!
Surat-based Aether Industries Limited is a manufacturer of specialty chemicals and advanced intermediates. Its products find application in the pharmaceutical, agrochemical, material science, coating, high-performance photography, and oil & gas segments of the chemical industry.
Was investing in LIC a mistake? Read more to find out.
The company started in 2013 and is one of the fastest specialty chemical companies in India, growing at a CAGR of nearly 60% between FY18 & FY22. Aether is also a leading Contract Research and Manufacturing Services provider and contract/exclusive manufacturing service provider.
The company's IPO was launched on 24th May and was open till 26th May. The issue size was a modest Rs 809 crores where each share was priced at Rs 642. The IPO saw an overwhelming response as the entire IPO was subscribed 6.26 times. The QIB part was the highest subscribed at 17.57 times.
The stock listed on the bourses at 9:50 at Rs 704, a premium of 9.7%. After that, the share declined to Rs 703.50 per share. However, after 10:00, the share hit the upper circuit after it jumped to Rs 774.70 per share and stayed there for the remainder of the day. At the close of Rs 774.70 per share, the share marked a profit of 20.67% to investors on its first day!
Should you Invest?
Different brokerages have differing views on the share. While some advice holding for higher gains, some say to sell for partial gains and hold the balance for the long term. Others say that one should book their profit and exit since the company's declining cash flow to EBITDA ratio was a matter of concern.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
