Ambey Laboratories IPO: Review, Valuation, Opening Date & GMP

Ambey Laboratories IPO - Complete Overview

Founded in 1985, Ambey Laboratories produces agrochemical chemicals for crop protection. For nearly forty years, the company has provided services to the agrochemical industry. The business produces and distributes 2,4-D base chemicals. The Quality Research Organization and the United Accreditation Foundation have awarded the company's production facility in Behror, Rajasthan, ISO 9001:2015 and ISO 14001:2015 certifications, respectively.

Presently, the business manufactures the following goods for its clientele, which consists of major corporations like SC Formulator Co. Ltd., JR Jindal Infraprojects Private Limited, and Aromatic Rasayan Private Limited:

• 2,4-D Acid 98% TC
• 2,4-D Sodium 95% SP
• 2,4-D Amine 866 | 720 | 480g / l SL
• 2,4-D Ethyl Hexyl Ester 96% TC
• 2,4-D Ethyl Ester 96% TC
• Chlorpyriphos 97%TC / 20%EC / 50%EC
• Thiamethoxam 96%TC / 25%WG / 75%SG
• Pretilachlor 95%TC / 50%EC / 37%EW
• Metribuzin 97%TC / 70%WS
• Hexaconazole 92%TC / 5%SC / 5%EC / 10%EC
• Metalaxyl 98%TC / 35%WS 

220 employees are working for the organization in different departments as of the end of 2023 on October 31.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on  July 4, 2024.

Let's take a closer look at the IPO's offerings below.

Ambey Laboratories IPO Overview

Ambey Laboratories IPO is an SME book-built issue of 65.70 lacs Shares amounting up to Rs.44.68 crore with a combination of OFS of 3.12 lacs Shares of Rs.2.12 crore and a Fresh Issue of 62.58 lacs Shares of Rs.42.55 crore out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors. The IPO will be available to investors on July 04, 2024, and conclude on July 08, 2024. The IPO will take place on the NSE and SME, with a projected listing date of Thursday, July 11, 2024. The price band of the share is Rs.65 to Rs.68 for each Share.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company’s Financial

Ambey Laboratories's revenue climbed by 26.23%, while profit after tax (PAT) increased by 27.82% during the fiscal years ending March 31, 2023, and March 31, 2022. 

Below is the synopsis of the company's financial data for the financial year that concluded between 31 October 2023 to 31 March 2023.

• The company’s total revenue is over Rs.1-100 crore.

• The net worth of the company has climbed by 39.67%.

• The company's EBITDA fell by 11.66%.

• The total assets of the company increased by 29.79%.

• The Liabilities of the company increased by 22.91%.

(Amount in Lacs)

Period	31 Oct 2023	31 Mar 2023	31 Mar 2022
Total Assets	7,478.42	5,761.85	5,592.94
Total Revenue	7,005.60	10,743.47	8,511.19
PAT	472.86	456.93	357.47
Net worth	3,301.46	2,363.60	1,906.67
Reserve & Surplus	1,432.58	588.66	131.73
Total Borrowings	1,551.29	1,365.22	1,804.86

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in Lacs)

Net Cash flow in various Activities	31 Oct 2023	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	503.11	944.10	560.72
Net Cash Flow Investing Activities	44.45	308.55	75.30
Net Cash Flow Financing Activities	549.54	623.37	507.64

 

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To meet Working Capital Requirements

• General corporate purposes

• Issue related expenses

 

Peers of Ambey Laboratories

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E
Atul Ltd	10	187.05	46.90
Meghmani Organics Ltd	1	9.85	63.21

 

Evaluation

The price of this IPO is Rs.65 to Rs.68 for each Share.

Evaluation of the P/E Ratio

The P/E Ratio of Ambey Laboratories is 27.81.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 39.2.

Particulars	P/E Ratio
Highest	51.7
Lowest	6.0
Average	39.2

 

IPO's Strengths

• Skilled Management Group.

• Prime its manufacturing facility's location is.

• Standards and Quality Assurance.

• Friendly Connections with its Vendors.

 

IPO’s Weaknesses 

• A letter from SEBI dated February 11, 2021 states that the promoter's demat account has been frozen. Sadly, she does not have a copy of the letter in her files, so it is difficult to determine why the account was frozen and how long it will stay suspended.

• Some of its properties, including the business's registered office, aren't its own. Should it be unable to extend the lease or rent arrangements, or should it be terminated, its business activities would be disrupted

• Without giving shareholders' consent or providing previous notice, the Board of Directors as well as Management reserve the right to alter its business practices and tactics.

• Few of the raw materials and finished products we use are combustible, caustic, and dangerous, and therefore need to be handled and stored carefully when necessary. Any accidents could cause property damage or fatalities, interrupt our operations, and negatively impact our cash flows, financial position, and operational outcomes.

• They have not had any bank or financial institution objectively appraise our funding needs or the deployment of the issue proceeds, therefore the actual cost may differ from the expected amount. These are based solely on management estimates.

 

IPO GMP Today

The Latest GMP of Ambey Laboratories IPO is Rs.28

 

Ambey Laboratories IPO Timetable (Tentative)

The IPO is scheduled from July 4 to July 8, 2024, with allotment on July 9, refund initiation on July 10, and listing on July 11, 2024.

Events	Date
IPO Opening Date	July 4, 2024
IPO Closing Date	July 8, 2024
IPO Allotment Date	July 9, 2024
Refund initiation	July 10, 2024
IPO Listing Date	July 11, 2024

 

Ambey Laboratories IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on July 4, close on 8 July, and offer a total issue size of 6570,000 Shares of Rs.44.68 crore out of which an Offer for Sale (OFS) of 3,12,000 Shares of Rs.2.12 crore and a Fresh Issue of 6,258,000 lacs Shares of Rs.42.55 crore is set for issue.

IPO Opening & Closing date	July 4, 2024 to July 8, 2024
Face Value	Rs.10 per share
Issue Size	6570,000 Shares of Rs.44.68 crore
Offer for Sale	3,12,000 Shares of Rs.2.12 crore
Fresh Issue	6,258000 Shares of Rs.42.55 crore
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Ambey Laboratories IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (2000 shares) amounting to Rs.136000, while for HNI investors, the minimum lot is 2 (4000 Shares) amounting to Rs.272000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
HNI (Minimum)	2 lots

 

Ambey Laboratories IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters and Management of Ambey Laboratories IPO

• Archit Gupta

• Arpit Gupta

• Sarina Gupta

• Rishita Gupta

Pre-issue Promoter shareholding	94.97%
Post-issue Promoter shareholding	-

 

Ambey Laboratories IPO Lead Managers

Fast Track Finsec Pvt Ltd.

 

Dividend Policy

The company doesn’t have any formal dividend Policy.

 

Conclusion

The company has noticed an increase in net worth and total assets and a fall in EBITDA in the previous Financial Year(s). The company is currently conducting an IPO for the public to fulfill its objectives. We hope that the information provided in this blog aids in your education regarding the financial performance of the company. Because it will provide you with trustworthy information on the company's insights, financials, and historical performance, this blog will be very helpful to you if you're looking for information about the upcoming IPO. Should this educational blog spark your curiosity, you might find our other pertinent and helpful articles on our website interesting to read. 

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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