MY VIEWS: (SUBSCRIBE FOR SHORT TERM)
Fellas my golden eyes caught some amazing points for subscribing this IPO:
- There is no listed peer in the domestic market. It means it is one of its first kind to list in India.
- Second thing which my eyes caught were consistent decrease in Long term Debts of the company which ultimately boosts its EPS.
- At the higher price band of Rs. 896 per share, AETL’s share is valued at a P/E multiple of 25.5x (to its restated FY16 EPS) At the offer price band of `880-896/- the stock trades at ~25x its FY16 EPS of `36/ which seems to be fairly Valued.
Result: SUBSCRIBE FOR SHORT TERM TO THIS IPO
Company Overview
Incorporated in 1989, Advanced Enzyme Technologies Ltd is an India based company engaged in research, development, manufacturing and marketing of Healthcare, Nutrition and Bio-Processing products.
Company produces over 400 proprietary products developed from 60 enzymes. Advanced Enzyme operate in two primary business verticals namely Healthcare & Nutrition (human and animal) and Bio-Processing (food and non-food).
Company has 13 patents registered in its name and applications for registration of 4 patents are pending.
Advanced Enzyme is among top 15 companies in enzyme sales in the world and 2nd largest in India. Company has over 20 years of fermentation experience in the production of enzymes. Company offer these products to its more than 700 global customers across 50 countries around the world.
Company have four R&D facilities, of which two are located at Thane, and one each at Sinnar and Chino, California.
Company Promoters
- Mr. Chandrakant Laxminarayan Rathi
- Mr. Vasant Laxminarayan Rathi
Issue Detail
- Issue Open: Jul 20, 2016 – Jul 22, 2016
- Issue Type: Book Built Issue IPO
- Issue Size:
Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 50.00 Cr
Offer for Sale of 4,034,470 Equity Shares of Rs 10 aggregating up to Rs [.] Cr - Face Value: Rs 10 Per Equity Share
- Issue Price: Rs. 880 – Rs. 896 Per Equity Share
- Market Lot: 16 Shares
- Minimum Order Quantity: 16 Shares
- Listing At: BSE, NSE
Objects of the Issue
- Offer for Sale:
Company will not receive any proceeds from the Offer for Sale. - The Fresh Issue:
The object of the fresh issue is to invest in Advanced Enzymes USA, the wholly owned subsidiary for repayment / pre-payment of certain loans availed by Advanced Enzymes USA; and general corporate purposes.
