Ami Organics Limited Intial Public Offering To Open On September 01, 2021

MUMBAI:
Ami Organics Limited (“Company”), a research & development driven manufacturer of specialty chemicals with varied end usage and is one of the major manufacturers of pharma intermediaries for certain key APIs, proposes to open its Initial Public Offering on Wednesday, September 01, 2021.

The Price Band of the offer has been fixed at Rs. 603 to Rs. 610 per Equity Share. Bids can be made for a minimum of 24 Equity Shares and in multiple of 24 Equity Shares thereafter. The Offer will close on Friday, September 03, 2021.

The Initial Public Offering comprises of fresh issue of equity shares of face value ₹ 10 each (“Equity Shares”). The Offer comprises of fresh issue of such number of Equity Shares aggregating up to Rs. 200 crores (“Fresh Issue”) and an offer of sales of up to 6,059,600 Equity Shares, constituting up to 700,000 Equity Shares by Parul Chetankumar Vaghasia (“Promoter Selling Shareholder”), Up to 1,500,000 Equity Shares by Girishkumar Limbabhai Chovatia, Up to 3,050,000 equity shares by Kiranben Girishbhai Chovatia, Up to 174,600 Equity Shares by Aruna Jayantkumar Pandya (jointly held with Jayant Manubhai Pandya), Up to 87,300 Equity Shares by Hina Indreshbhai Shah, up to 87, 280 Equity Shares by Harshad Ramlal Sheth, up to 76,200 Equity Shares by Dhirajlal Amrutlal Amlani, up to 75,000 Equity Shares by Vrushti Atulkumar Shah, Up to 63,000 Equity Shares by Jolitbhai Jasvantlal Shah (jointly held with Amitaben Jolitbhai Shah), Up to 55,920 Equity Shares by Nishit Atulkumar shah, Up to 49,000 Equity Shares by Surabhi Yash Shah, Up to 32,000 Equity Shares by Narmada Amrutlal Amlani, Up to 26,500 Equity Shares by Shanti Devi Kankaria, Up to 19,000 Equity Shares by Divya Mahendrakumar Kankaria, Up to 15,000 Equity Shares by Chovatiya Haresh H, Up to 14,910 Equity Shares by Amitaben Jolitbhai Shah(jointly held with Jolitbhai Jasvantlal Shah), Up to 14,500 Equity Shares by Saryu Dhirajlal Amlani, Up to 10,000 Equity Shares by Koladia Mehul M, Up to 8700 Equity Shares by Jyotiben Rakeshbhai Lahoti (jointly held with Rakesh Baluram Lahoti) and Up to 690 Equity Shares by Shah Disha Jolit (jointly held with Jolitbhai Jasvantlal Shah) (“Collectively, ”Selling Shareholders” and such Equity Shares “Offered Shares”) (“Offer For Sale” and together with the Fresh Issue, the “Offer”) Further, the Company in consultation with the BRLMs (defined below), has undertaken a Pre-IPO placement of Equity Shares aggregating to Rs. 100 crores (The “Pre-IPO
Placement”). The size of the Fresh Issue has been reduced by Rs. 100 crores pursuant to the Pre-IPO placement. Accordingly, the Fresh Issue size is up to Rs. 200 crores.

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such allocation, the “QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion,the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price.

Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders (“NIB”) and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders (“RIB”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily participate in the Offer only through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Accounts (including UPI ID in case of RIBs, if applicable) which will be blocked by the SCSBs, or the Sponsor Bank, as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

The net proceeds of Fresh Issue i.e. Gross proceeds of the Fresh Issue less the Offer expenses apportioned to the company (“Net Proceeds”) and the proceeds from Pre-IPO placement are proposed to be utilised towards (i) Repayment / prepayment of certain financial facilities availed by the company amounting to Rs. 140 crores; (ii) Funding working capital requirements of the company amounting to Rs. 90 crores and (iii) General corporate purpose.

In addition, the company expects to achieve the benefits of listing the Equity Shares on the Stock Exchanges, to enhance its visibility and brand image among existing and potential customers and creation of a public market for its Equity Shares in India. The proceeds of the Offer for Sale shall be received by the Selling Shareholders. The Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to the proceeds from the Offer for Sale, net of their respective portion of the Offer related expenses and relevant taxes thereon Company will not receive any proceeds from the Offer for Sale and all such proceeds (net of any Offer related expenses to be borne by the Selling Shareholders) will go to the Selling Shareholders.

Company expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to Shareholders and will also provide a public market for the Equity Shares in India.

Intensive Fiscal Services Private Limited, Ambit Private Limited and Axis Capital Limited are the Book Running Lead Managers (“BRLMs”) to the issue. The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE. All capitalised terms used, but not defined herein, shall have the meanings ascribed to such terms in the RHP.