AMI ORGANICS LIMITED INTIAL PUBLIC OFFERING TO OPEN ON SEPTEMBER 01, 2021
The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such allocation, the “QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders (“NIB”) and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders (“RIB”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily participate in the Offer only through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Accounts (including UPI ID in case of RIBs, if applicable) which will be blocked by the SCSBs, or the Sponsor Bank, as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.
The net proceeds of Fresh Issue i.e. Gross proceeds of the Fresh Issue less the Offer expenses apportioned to the company (“Net Proceeds”) and the proceeds from Pre-IPO placement are proposed to be utilised towards (i) Repayment / prepayment of certain financial facilities availed by the company amounting to Rs. 140 crores; (ii) Funding working capital requirements of the company amounting to Rs. 90 crores and (iii) General corporate purpose
In addition, the company expects to achieve the benefits of listing the Equity Shares on the Stock Exchanges, to enhance its visibility and brand image among existing and potential customers and creation of a public market for its in India.
The proceeds of the Offer for Sale shall be received by the Selling Shareholders. The Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to the proceeds from the Offer for Sale, net of their respective portion of the Offer related expenses and relevant taxes thereon
Company will not receive any proceeds from the Offer for Sale and all such proceeds (net of any Offer related expenses to be borne by the Selling Shareholders) will go to the Selling Shareholders.
Company expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to Shareholders and will also provide a public market for the Equity Shares in India.
Intensive Fiscal Services Private Limited, Ambit Private Limited and Axis Capital Limited are the Book Running Lead Managers (“BRLMs”) to the issue.
The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE