The shares of one of the leading manufacturers of specialty chemicals gained up to 3 percent after the company received approval from the board of directors for raising funds up to Rs 500 crore.
With a market capitalization of Rs 4,618.37 crore, the shares of Ami Organics Ltd were trading at Rs 1,248.30 per share, increasing around 2.24 percent as compared to the previous closing of Rs 1220.95 apiece.
According to the company filing, Ami Organics Ltd has received approval from the board of directors of the company for raising funds up to Rs 500 crore through the issuance of equity shares having a face value of Rs 10 each of the Company or other eligible securities by way of a qualified institution placement (QIP).
Looking into Ami Organics Ltd’s performance, revenue increased by 9 percent from Rs 152 Crore in Q3FY23 to Rs 166 Crore in Q3FY24. During the same duration, net profit decreased by 18 percent from Rs 22 crore to Rs 18 crore.
As of Q3FY24, the company has signed an MOU with the Government of Gujarat for investment amounting to Rs 300 crores for setting up a dedicated manufacturing facility for electrolytes business in the state of Gujarat.
The firm has three production sites and one research and development center, with over 500 clients in 50 countries, and exports account for 59% of its revenue.
Ace investor Ashish Kacholia holds 7,76,474 shares, i.e. equivalent to 2.11 percent of the company as of December quarter 2023.
The firm has an extensive clientele, including well-known companies like Cipla, Laurus Labs, Lupin, Aurobindo Pharma, and others.
The company’s gross margin for the quarter was 42.9%, compared to 46% in Q3FY23 and 41% in Q2FY24. Gross margins fell 303 basis points year on year but rose 190 basis points sequentially. An unfavorable product mix and pricing pressure pushed up gross margins.
Ami Organics Limited is a prominent maker of specialized chemicals that prioritizes R&D. The firm manufactures a variety of Advanced Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API) for New Chemical Entities, as well as agrochemical and fine chemicals.
Written by:- Abhishek Singh
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