Gujarat-based Aether Industries Limited, a manufacturer of specialty chemicals, intends to issue a qualified institutional placement (QIP) offering shortly with the aim of raising between Rs 1,200 crore and Rs 1,300 crore.

Aether Industries is a specialised chemical company that was established in 2013 with the intention of producing complex and distinctive specialty compounds and advanced intermediates. CRAMS (Contract Research and Manufacturing Services) is another area in which Aether excels. Aether’s products are found to be used in the fields of sustainability, agrochemicals, oil & gas, renewable energy, and pharmaceuticals.

The business is working with investment banks JM Financial, DAM Capital, and UBS on the funding campaign. The sources claim that Aether intends to launch the QIP early in the next quarter, depending on the state of the market.

Working capital needs, capital expenditures, and inorganic development prospects will all be covered by the funds.

“The company has been exploring opportunities for its growth including capitalising of acquired plots vide setting up operational facilities in-line with the core business object of the company. This would require sufficient resources including funds to be available and to be allocated, from time to time,” the company noted in its annual general meeting (AGM) notice to its shareholders.

The notice added, “It would be, therefore, prudent for the company to have the requisite enabling approvals in place for meeting the fund requirements for its growth, capital expenditure, working capital, financing organic or inorganic growth opportunities, general corporate purposes, investment in subsidiaries, refinancing the existing borrowings and also such other corporate purposes.”

Aether Industries’ shareholders approved the estimated Rs 1,300 crore funding at the company’s annual general meeting on September 10. Three years following its initial public offering (IPO), a listed company must own at least 25% of its shares in the public market. 

The proposed QIP will help the company achieve the minimum public shareholding standards set by the Securities and Exchange Board of India (SEBI).

The promoters of Aether, who currently hold 81.79% of the business, are required to cut their stake to 75%. 

Tired of guessing stocks to trade in daily?
Unicorn Signals empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Unicorn Signals app today and take control of your investments!