AMI Organics IPO OPENS TOMORROW: In chat with Anil Singhvi, management says it plans to cut debt, generate working capital on the cards - Watch EXCLUSIVE Interview here

As Ami Organics, a speciality chemical making company, launches its Initial Public Offer tomorrow, Zee Business Managing Editor Anil Singhvi spoke to the management of the company and tried to decode the usage of proceeds that would be raised through IPO and the company’s further plans.

In this regard, Ami Organics Chief Financial Officer Abhishek Patel, who is associated with the company since June 1, 2018, explained that the company aims to reduce at least Rs 140 crore debt through the Rs 300-crore IPO and also has need of working capital of Rs 90 crore for the next two years, while the remaining money would be used for general corporate purposes.

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Ami Organics aims to raise Rs 300 crore through the share sale, however, the size is decreased to Rs 200 crore as it would be raising Rs 100 crore from the pre-IPO round as we have received some good names from the stock market investors, the CFO reasons why the issue size was decreased.

Similarly, speaking about the growth prospects, Abhishek Patel says, the company has registered 19 per cent revenue CAGR (Compound Annual Growth Rate) in 5 years and 28 per in 10 years, similarly it reported 35 per cent profit CAGR in 5 years and 45 per cent in 10 years. 

कल खुलेगा #AmiOrganics का IPO...

IPO से कितनी रकम जुटाएगी कंपनी, कहां होगा इस्तेमाल?

क्या है आगे की ग्रोथ योजनाएं, कैसी है मौजूदा वित्तीय स्थिति?

देखिए कंपनी के एग्जिक्यूटिव चेयरमैन & MD नरेश पटेल और CFO अभिषेक पटेल के साथ खास बातचीत#NewsParViews @AnilSinghvi_ @AmiOrganics pic.twitter.com/EJuyZVrt6N

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Specifically, in the financial year 2021, the two of the company’s products did quite well, and they are not related to Covid, says the CFO adding further alone the revenue growth in FY21 was at 42 per cent, is mostly led by volume growth of over 40 per cent due to Anti-retroviral product.

He adds, the company’s growth in terms of revenue and profit has been sustainable and long-term, which is not related to Covid applications.

The company did an acquisition last financial year, and R&D expansion a year before that, while also invested in the existing facilities, due to which our debts had raised and we aim to reduce that with this share sale, says Abhishek Patel. 

The company’s Executive Chairman and Managing Director Naresh Patel, while talking about the Rs 370-crore Offer-For-Sale, says a mere 2 per cent of promoters would be selling their stake in the company, of which Chetan Kumar Vaghasia would be selling 700000 shares, while the majority of them are angel investors those selling their shares during OFS.

Naresh Patel, while talking about the USFDA query, said, “Our customer base comes under FDA regulator, so sometimes even USFDA issues an inspection to a chemical company. Even we got the same in 2016 and 2020 for different products and different customers. Both the years, the queries were not critical and both the times we got clearance from them.”

This increases the confidence that our manufacturing plants and system are of high standards, concludes, the executive chairman and MD.