Gujarat-based specialty chemical maker Ami Organics' shares jumped as much as 19 percent in early deals on Thursday - a third straight day of strong gains since a stellar debut on Dalal Street. The Ami Organics stock more than doubled investors' money compared with the issue price of its initial public offer (IPO) that opened earlier this month.
At 9:25 am, Ami Organics shares traded with a gain of Rs 167.7 or 15 percent at Rs 1,289.1 on the BSE. The debutant sharply outperformed the headline Sensex index, which was up 0.2 percent near a record high registered earlier on Thursday.
At the day's high so far, the Ami Organics stock has risen 48.3 percent compared with the listing price, and 119.3 percent from the issue price.
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Ami Organics started its journey in the secondary market on Tuesday with its shares listed at Rs 902 on the bourse - a 47.9 percent premium over the upper end of the issue price of its IPO. On NSE, the stock debuted at Rs 910, marking a premium of 49.2 percent over the issue price of Rs 610.
Should you go long on Ami Organics now?
Santosh Meena, Head of Research at Swastika Investmart, suggests existing investors hold the stock citing the company's strong fundamentals and a positive outlook for the sector.
"The company may perform well in the long run on the back of strong domestic and global opportunities whereas the 'China Plus One' strategy may also provide robust growth to the specialty chemical companies in India. We would recommend the stock to hold from a long-term perspective," Meena said.
Ami Organics looks well placed to tap the opportunity in the fast growing specialty chemical market by leveraging its strong R&D and expanding product portfolio, Sneha Poddar, AVP Research-Broking and Distribution at Motilal Oswal Financial Services, told CNBCTV18.com.
She likes Ami Organics due to factors such as the company's wide product portfolio in APIs, strong client relations across geographies, and robust financials. Poddar believes the market would give premium valuations to such niche stories with bright industry prospects.
Ami's Rs 570-crore IPO, which was open for bidding from September 1 to September 3, was subscribed 64.5 times. The issue received a total of 42.2 crore bids for the 65.4 lakh shares on offer.
Shares under the IPO were offered in a price band of Rs 603-610.
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Founded in 2007, Ami Organics is an R&D-driven specialty chemical manufacturer that develops advance pharmaceutical intermediates for active pharmaceuticals ingredients (APIs). The company in multiple product segments, including agrochemicals, polymers and cosmetics.
An integrated supplier of global healthcare products, Ami Organics caters to both domestic and international markets covering the North and South Americas, Europe and Asia. The company has a strong market presence in more than 27 countries.
First Published: Sept 16, 2021 10:17 AM IST
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