Shares of Aether Industries shot up 10 percent on Wednesday’s early trades to reach a fresh all-time high of ₹ 1,104.50 apiece on the National Stock Exchange (NSE), amid fund-raising plans. At 12:28 PM, its shares were trading at ₹ 1093.55 apiece, up 8.91 percent.
The speciality chemical maker has been in the limelight since it inked a pact with Saudi Aramco Tech earlier this month. On Monday, it launched a qualified institutional placement (QIP) issue to raise up to ₹ 750 crores.
The fundraising committee of the company fixed the floor price at ₹ 984.90 per share, according to an exchange filing. Moreover, the company said that it may, at its discretion, offer a discount of more than 5 percent on the floor price for the issue.
Aether Industries manufactures advanced intermediates and specialty chemicals involving differentiated chemistry and technology. Moreover, it provides Contract Research and Manufacturing Services (CRAMS) and Contract Exclusive Manufacturing Services built upon technology, research and development (R&D) and pilot plant factories.
The best performances for the March quarter typically came from contract manufacturers, and this is where the medium-term investment opportunity seems most promising including Aether Industries, said Kotak Institutional Equities.
“The company is undertaking aggressive expansion plans with a capex worth Rs 750 crore over FY 2024-25 to drive revenues over Rs 2,500 bn by FY2027-28,” it added.
The Surat-based company was incorporated in 2013 and was listed on the bourses in June 2022 when it raised about ₹ 808 crores from the initial sale of its shares for ₹ 642 apiece. Since then, its share price gained 72 percent.
With a market capitalization of ₹ 12,502 crores, Aether Industries is a small-cap company. It has an ideal return on equity of 15.99 percent and is almost debt free. Its shares were trading at a price-to-earnings ratio (P/E) of 95.87, which is significantly higher than the industry P/E of ₹ 26.15, indicating that the stock might be overvalued as compared to its peers.
Written By Simran Bafna
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