Ambey Laboratories Limited is coming up with an IPO worth INR 46.68 crores, consisting of a fresh issue of 62,58,000 shares worth INR 44.55 crores and an offer to sell 3,12,000 shares worth INR 2.12 crores. The company aims to meet working capital requirements and general corporate purposes.
Ambey Laboratories IPO – Important Dates
| Ambey Laboratories IPO Date | July 4, 2024 to July 8, 2024 |
| Ambey Laboratories IPO Listing Date | July 11, 2024 |
| Ambey Laboratories IPO Price | INR 65-68 per share |
| Ambey Laboratories IPO Lot Size | 2000 Shares |
| Ambey Laboratories IPO Total Issue Size | INR 46.68 crores |
| Ambey Laboratories IPO Basis of Allotment | July 9, 2024 |
| Ambey Laboratories IPO Initiation of Refunds | July 10, 2024 |
| Ambey Laboratories IPO Credit of Shares to Demat | July 10, 2024 |
| Ambey Laboratories IPO Issue Type | Book Built Issue IPO |
| Ambey Laboratories IPO Listing At | NSE, SME |
Ambey Laboratories Limited IPO – Company Profile
Ambey Laboratories Limited manufactures and supplies high-quality “2, 4-D base chemicals” for agrochemical use. Its 5-acre facility in Behror, Rajasthan, India, ensures top-notch EHS compliance and rigorous quality testing.
Ambey Laboratories Limited’s Behror, Rajasthan facility is ISO 9001:2015 and ISO 14001:2015 certified and complies with the RoHS Directive, ensuring top quality, environmental, and safety standards and restricting hazardous substances in electrical equipment.
In addition to home hygiene products like cleaners, repellents, hand wash, and sanitizer, they offer a variety of agrochemical products, including 2,4-D Amine Salts, Acids, Esters, and Hexaconazole.
Ambey Laboratories Ltd IPO Fundamental Analysis
Ambey Laboratories Limited’s financial analysis reveals a mixed performance. Revenue increased year over year but fell short in the current period. Equity grew, debt reliance decreased, and profitability and EPS rose, but RoNW and inventory efficiency declined.
- Revenue Trend: The revenue increased from ₹8,460.07 lakhs in March 2022 to ₹10,482.12 lakhs in March 2023. The revenue for the current year’s 7-month period ending October 2023 is INR 6,993.36 lakhs, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹357.47 lakhs in March 2022 to ₹472.86 lakhs by October 2023. The increase in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹7.08 in March 2022 to ₹2.65 by October 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 18.75% to 14.32%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Ambey Laboratories SME IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 October 2023 |
| Revenue (₹ in lakhs) | 8,460.07 | 10,482.12 | 6,993.36 |
| Equity (₹ in lakhs) | 1,906.67 | 2,363.60 | 3,301.46 |
| Expenses (₹ in lakhs) | 7,425.98 | 9,640.74 | 6,031.46 |
| Profit and Loss After Tax (₹ in lakhs) | 357.47 | 456.93 | 472.86 |
| RoNW (%) | 18.75 | 19.33 | 14.32 |
| NAV per Equity Share (₹) | 37.78 | 13.32 | 18.52 |
| Diluted EPS only (₹) | 7.08 | 2.57 | 2.65 |
| Total Assets (in lakhs) | 5,592.94 | 5,761.85 | 7,478.42 |
| Total Liabilities (in lakhs) | 3,686.27 | 3,398.25 | 4,176.96 |
| Debt Equity Ratio | 0.95 | 0.58 | 0.47 |
| Current Ratio (in time) | 1.13 | 1.36 | 1.66 |
| Inventory Turnover Ratio | 7.07 | 6.45 | 3.37 |
Ambey Laboratories Limited IPO Peer Comparison
Ambey Laboratories Limited, Atul Ltd, and Meghmani Organics Ltd show varied financial metrics, with Atul Ltd leading significantly. Ambey Laboratories has moderate metrics, while Meghmani Organics demonstrates notable but more miniature financial figures than Atul Ltd.
| Company | PAT (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Ambey Laboratories Limited | 456.93 | 10 | – | 133.16 | 19.33 | 13.32 |
| Atul Ltd | 55,215.00 | 10 | 46.90 | 187.05 | 12.03 | 1,555.42 |
| Meghmani Organics Ltd | 25,038.58 | 1 | 63.21 | 9.85 | 15.11 | 65.11 |
Ambey Laboratories Ltd IPO Objective
The main objective of Ambey Laboratories Limited is to meet working capital requirements.
- Working Capital Requirements: Due to increased revenue, extended customer credit periods, and discounted raw material prices, the company intends to utilize INR 30.93 Crores for working capital requirements.
- General Corporate Purpose: The company plans to use the net proceeds for general corporate purposes, including strategic initiatives, strengthening marketing networks and capabilities, meeting difficulties, and brand-building exercises to enhance and reinforce overall operations.
Ambey Laboratories IPO Risks And Challenges
Ambey Laboratories Limited’s risk includes potential lease non-renewal causing disruptions, management policy changes affecting operations and share price, and mishandling of hazardous materials leading to accidents, liability, and reputational damage.
- Some of their business premises, including the Registered Office, are leased and may not be renewed, potentially causing relocation issues, business disruptions, and adverse effects on operations and profitability.
- Their Board and Management can change operating policies and strategies without prior notice or shareholder approval, potentially unpredictably impacting their business, operating results, and Equity Share price.
- Improper handling or accidents involving hazardous raw materials could cause industrial accidents, property damage, and environmental harm, leading to operational disruptions, liability, and reputational damage, which could negatively impact the business, operations, and financial condition.
Ambey Laboratories Ltd IPO – Industry & Market Potential
India’s chemical sector, contributing 7% to GDP, expects robust growth with a US$ 304 billion industry by 2025, driven by specialty chemicals and petrochemicals. Agrochemicals and polymers show significant growth prospects amid global export ambitions and import substitution strategies.
India ranks fourth in global agrochemical production, with exports totaling US$ 5.37 billion in FY 2022-23. Valued at US$ 5.5 billion, the sector aims for 8.3% CAGR growth, targeting 40% of India’s chemicals exports by 2040, influenced by demand and regulatory changes.
The Indian chemical industry presents growth opportunities in Specialty chemicals, with Agrochemicals valued at USD 5.5 billion, growing at 8.3% CAGR, and Food and Feed Ingredient Chemicals at USD 3 billion, growing 7-9% annually.
Ambey Laboratories Limited IPO – Type of Offer
Ambey Laboratories Limited plans a fresh issue of shares, seeking INR 46.68 crores crores to meet working capital requirements. Additionally, the company proposes an offer for sale, intending to sell 3,12,000 existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 44.55 crores. The company intends to utilize the proceeds from the fresh issue to meet working capital requirements and general corporate purposes.
- Offer for sale: Ambey Laboratories Limited is offering to sell 3,12,000 existing shares worth INR 2.12 crores The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the selling shareholder | Maximum number of offered shares for sale (in millions) |
| Sarina Gupta | 3,12,200 |
Ambey Laboratories Ltd IPO Offer Size
The offer size of Ambey Laboratories Limited is INR 46.68 crores, consisting of a fresh issue of 62,40,000 shares and an offer to sell 3,12,000 shares. The company seeks funds to meet working capital requirements and general corporate purposes.
Ambey Laboratories Limited IPO Allotment Structure
Ambey Laboratories allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is reserved for Market Makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares are reserved for marker makers.
How to apply for an Ambey Laboratories IPO?
To apply for the Ambey Laboratories IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Ambey Laboratories IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Ambey Laboratories Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Ambey Laboratories IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Ambey Laboratories IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Ambey Laboratories IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Ambey Laboratories IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Ambey Laboratories IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the National Stock Exchange (NSE) and Small Medium Exchange (SME) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Ambey Laboratories IPO Offer Registrar
The registrar for the Ambey Laboratories IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In Time India Private Limited
C 101, 247 Park, L.B.S. Marg
Vikhroli (West), Mumbai –400 083
Maharashtra, India
Telephone: 022 4918 620087
Email: [email protected]
Website: www.linkintime.co.in
Ambey Laboratories IPO FAQs
1. What is the allotment date of the Ambey Laboratories IPO?
The allotment date of the Ambey Laboratories is July 8, 2024.
2. What is the price band of the Ambey Laboratories IPO?
The price band of the issue is not yet announced.
3. What is the size of the Ambey Laboratories IPO?
The offer size of Ambey Laboratories Limited is INR 46.68 crores, consisting of a fresh issue of 62,58,000 shares worth INR 44.55 crores and an offer to sell 3,12,000 shares worth INR 2.12 crores The company seeks funds to meet working capital requirements and general corporate purposes.
4. What is the listing date of the Ambey Laboratories IPO?
The listing date of Ambey Laboratories is July 10, 2024.
