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Aether Industries IPO Review

Aether Industries IPO Review


Aether Industries Ltd. (AIL) is a speciality chemical manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.  Aether is one of the fastest growing specialty chemical companies in India, growing at a CAGR of nearly 49.5% between Fiscal 2019 and Fiscal 2021.

The company has some criteria for choosing products based on its chemical complexity, niche applications, limited competition, scalability and commercial potential. Using these criteria, it developed and continues to develop, advanced intermediates and specialty chemicals products having applications in the pharmaceutical, agrochemicals, material science, coatings, high-performance photography, additives and oil & gas segments of the chemicals industry. As of March 31, 2022, AIL’s product portfolio comprises over 25 products. AIL’s products are advanced intermediates and specialty chemicals that occupy a position in the chemical industry value chain between commodity chemicals and final actives and formulations with its products more closely aligned to the higher value range, further away from the commodities and closer to the final active part of the value chain. 


  • Differentiated portfolio of market-leading products.
  • Focus on R&D to leverage the core competencies of chemistry and technology.
  • Long-standing relationships with a diversified customer base.
  • Synergistic Business Models focused on Large Scale Manufacturing, CRAMS and Contract Manufacturing.
  • Focus on Quality, Environment, Health and Safety (QEHS).
  • Strong and consistent financial performance.
  • Experienced Promoters and Senior Management with extensive domain knowledge.


AIL is coming out with a maiden combo IPO of fresh equity issue worth Rs. 627.00 cr. and an offer for sale (OFS) thus making an overall size of the IPO of Rs. 808.04cr It has fixed a price band of Rs. 610 – Rs. 642 for equity share having a face value of Rs. 10 each. The issue opens for subscription on May 24, 2022, and will close on May 26, 2022. Minimum application is to be made for 23 shares and in multiples thereon, thereafter. The company has reserved shares worth Rs. 7.15 cr. for its eligible employees and from the residual portion, it has allocated 50% for QIBs, 15% for HNIs and 35% for retail investors. AIL did pre-IPO placement worth Rs. 130 cr. and has reduced the fresh equity issue to that extent. 


The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

1. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company.

2. Funding capital expenditure requirements for the manufacturing facility (Proposed Greenfield Project).

3. Funding working capital requirements of the Company.

4. General corporate purposes.

Factors driving the growth in India Speciality Chemicals market:

  • Growth in End User Segments.
  • Supply chain de-risking driven by China downturn
  • Accelerated R&D and capital expenditure.
  • Government support and “Make in India” campaign.
  • Availability of feedstock
  • Improved safety, health and environment compliance and “Green chemistry”.


AIL’s customers include more than 160 multinationals, and global, regional and local companies. As of March 31, 2022, it sold products to 34 global customers in 18 countries and to 154 domestic customers. Its customers include a rich collection of leading domestic and international multinational companies. AIL places importance on developing human resources. As of March 31, 2022, it had 719 employees (excluding trainees) and 150 contract workers and trainees.

Pharmaceutical Customers:-

  1. Aarti Drugs Ltd 
  2. Cadila Healthcare Ltd
  3. Divis Laboratories Ltd
  4. Dr. Reddy’s Laboratories Ltd
  5. Granules India Ltd 
  6. IOL Chemicals 
  7. IPCA Laboratories Ltd
  8. Laurus Labs Ltd


On the financial performance front, for the last three fiscals, AIL has (on a consolidated basis) posted turnover/net profits of Rs. 203.28 cr. / Rs. 23.34 cr. (FY19), Rs. 303.78 cr. / Rs. 39.96 cr. (FY20) and Rs. 453.79 cr. / Rs. 71.12 cr.  (FY21). For the first nine months of FY22 ended on December 31, 2021, it has earned a net profit of Rs. 82.91 cr. on a turnover of Rs. 449.32 cr. 

For the last three fiscal years, the company has posted an average Return on Net Worth of 47.50%.

  • 28.7% CAGR revenue growth in the intermediate & speciality chemical segment to INR 696 cr
  • 60.4% CAGR revenue growth in the contract manufacturing segment to INR 360 cr
  • 63.2% CAGR revenue growth in the CRAMS segment to INR 156 cr.


Considering the growth opportunities for specialty chemicals in pharma, agrochemicals and FMCG space, and improving prospects for contractual manufacturing & CRAMS under Make-in-India initiatives, we recommend May Apply Rating. Before applying do your own research.

Read Aether Industries IPO (Review) Details HERE