July 11, 2024
New Delhi, India
New Debut
Ambey Laboratories made a strong debut on the NSE SME platform today. The shares opened at ₹85 apiece, reflecting a 25% premium over the issue price of ₹68.
IPO Subscription and Details
Ambey Laboratories’ IPO was open for subscription from July 4 to July 8, with a lot size of 2,000 shares. The price band was set between ₹65 and ₹68 per equity share, with a face value of ₹10. The IPO saw robust demand, being oversubscribed 173.18 times on the final day.
Company Profile
Ambey Laboratories specializes in producing agrochemical chemicals for crop protection. With nearly forty years of service to the agrochemical industry, the company manufactures and distributes 2,4-D base chemicals. Their clients include major corporations such as SC Formulator Co Ltd, JR Jindal Infraprojects Private Ltd, and Aromatic Rasayan Private Ltd.
According to the red herring prospectus (RHP), the company’s listed peers include Meghmani Organics Ltd (P/E of 63.21) and Atul Ltd (P/E of 46.90).
IPO Details and Utilization
The IPO comprised 62,58,000 new equity shares valued at ₹42.56 crore at the upper cap and 3,12,000 shares through an Offer for Sale (OFS) valued at ₹2.12 crore. The proceeds from the IPO will be used to meet working capital requirements and other general business objectives.
Fast Track Finsec Pvt Ltd served as the book-running lead manager for the IPO, and Link Intime India Private Ltd acted as the registrar. Nikunj Stock Brokers was the market maker for the Ambey Laboratories IPO.
Grey Market Premium
The grey market premium (GMP) for Ambey Laboratories IPO was noted at +28, indicating a trading premium of ₹28 in the grey market. This suggested an estimated listing price of ₹96 per share, 41.18% higher than the IPO price of ₹68.
The grey market premium reflects investors’ willingness to pay more than the issue price, indicating strong market demand and positive sentiment towards the company’s shares.
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