QIB category subscribed 94.03 times
Investors made a beeline for the initial public offer (IPO) of Advanced Enzyme Technologies (AETL). The IPO received bid for 37.52 crore shares. The IPO was subscribed a massive 116.02 times. The bidding for the IPO ended yesterday, 22 July 2016. Investor category wise data showed that the IPO received robust response from non institutional investors (NII). The NII category of the issue was subscribed a staggering 393.10 times.
The IPO also got strong response from institutional investors and retails investors. The retail investors' category was subscribed 11.67 times. The Qualified Institutional Buyers (QIB) category was subscribed 94.03 times. Within the QIB category, foreign institutional investors (FIIs) and domestic financial institutions (DFIs) made aggressive bidding for the IPO. FIIs put in bids for 3.57 crore shares, compared with 9.18 lakh shares reserved for the QIB category as a whole. DFIs placed bids for 3.45 crore shares and mutual funds put in bids for 1.03 crore shares.
The IPO of AETL was a combination of a fresh issue of shares aggregating upto Rs 50 crore and offer for sale of upto 40.34 lakh shares from promoter group selling shareholders, investor group selling shareholders and other selling shareholders. The price band for the IPO was fixed at Rs 880-896 per share.
Promoted by Vasant Rathi and Chandrakant Rathi, AETL is the largest Indian enzyme company engaged in the research & development, manufacturing and marketing of more than 400 proprietary enzyme products developed from 60 indigenous enzymes. AETL ranks among the top 15 global companies in terms of enzyme sales and has the second highest market share domestically, next only to the world's largest enzyme company Novozymes. AETL is an integrated company with presence across the enzyme value chain, covering the entire range of activities from research & development, commercial-scale manufacturing, to marketing of enzyme products and customized enzyme solutions which enables AETL to be cost effective and competitive.
From the proceeds of the fresh issue, AETL has earmarked Rs 40 crore for investment in Advanced Enzymes USA, a wholly owned subsidiary of the company, for repayment of certain loans availed by Advanced Enzymes USA. The rest Rs 10 crore is for general corporate purpose.
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AETL raised Rs 122.84 crore from allotment of 13.71 lakh shares to a slew of anchor investors including foreign institutional investors, mutual funds and insurance companies a day ahead the opening of the IPO.
After three years of sluggish performance, AETL posted strong growth in the year ended 31 March 2016 (FY 2016). Consolidated net profit rose 57% to Rs 78.44 crore on 32% growth in net sales to Rs 293.76 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).
The company does not have a formal dividend distribution policy. It paid interim dividend of 10% for FY 2016. The rate of dividend was 5% each in FY 2014 and FY 2015, 15% in FY 2013 and 10% in FY 2012.
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