Ambey Laboratories IPO

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04th – 08th Jul 2024
11 Jul 2024
₹65 – ₹68
2000 shares (₹136000)
45cr

Schedule

Issue open date 04 Jul 2024
Issue close date 08 Jul 2024
UPI mandate deadline 08 Jul 2024 (5 PM)
Allotment finalization 09 Jul 2024
Refund initiation 10 Jul 2024
Share credit 10 Jul 2024
Listing date 11 Jul 2024
Mandate end date 23 Jul 2024
Lock-in end date for anchor investors (50%) 08 Aug 2024
Lock-in end date for anchor investors (remaining) 07 Oct 2024

About

Ambey Laboratories Limited’s IPO is launching on July 4, 2024, with subscriptions closing on July 8, 2024. Ambey Laboratories, incorporated on March 20, 1985, as Ambey Laboratories Private Limited, became a public limited company on December 30, 2014. The company, now Ambey Laboratories Limited, specializes in manufacturing agrochemical products, focusing on 2,4-D base chemicals. Their facility in Behror, Rajasthan, certified with ISO 9001:2015 and ISO 14001:2015, emphasizes quality, environmental, and safety practices.

They produce various chemicals, including 2,4-D Acid and Chlorpyriphos, supplying to large corporations. Ambey Laboratories operates within a network involving Aromatic Rasayan Private Limited and OFB Tech Private Limited, engaging in transactions as suppliers and customers to streamline the supply chain and enhance operational efficiency.


Financials



Issue size

Funds raised in the IPO Amount
Overall ₹44.68 crores
Fresh issue ₹42.55 crores
Offer for sale ₹2.12 crores

Proceeds from the issue

  • Working capital requirements of the company – The company’s working capital needs have risen due to raw materials, production increases, and extended customer credit. It plans to offer better credit terms to attract new customers. Funding sources include IPO proceeds, internal accruals, and incremental net working capital, with a combination of internal accruals and debt covering any shortfalls.
  • General corporate purposes – The company will use the raised funds for working capital, general corporate purposes, and issue expenses. There are no plans to change its capital structure within six months of the issue opening.
  • Issue expenses – Issue-related expenses include fees for lead managers, registrars, advertising, publishing, regulators, printing, stationery, auditors, legal advisors, and other professionals. Additional costs cover marketing, distribution, commissions, brokerage, processing, and underwriting. Total expenses are estimated not to exceed Rs. 250 lakh and will be finalized upon determining the issue price for the prospectus.

*All figures except EPS are in ₹ crores

Risks

  • Market risk: The company is exposed to market risk due to fluctuations in interest rates, exchange rates, and commodity prices. This could impact the company’s financial performance and results.
  • Regulatory risk: Changes in regulations and laws could affect the company’s operations and profitability. Compliance with these regulations is crucial to avoid any legal issues.
  • Competition risk: The company faces intense competition in the industry, which could impact its market share and pricing power. Staying competitive and innovative is essential to mitigate this risk.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 10, 2024, on the registrar’s website and the NSE website.