Aether Industries Limited IPO Message Board (Page 23)

Hindustan Zinc (FPO) and a few insurance companies owned by the clever GIC / LIC promoter.
One may apply for listing and incremental loss by holding forever.

@Anarchist, good one, in government ipos many applying for listing gain becomes long term investors holding in loss.
😅😅😅

BTW are you not using your original chittorgarh account? Just asking

upi via broker available till 5 lakh rupees and also creating fake subscriptions.

It worked at 3:50 PM also . Looks like for safer side we can count up to 3:55 PM , even though technically it may possible till 4PM

for which ipo you are talking and which day you applied ?

I applied Rachana Infrastructure and global secure on today just to check whether I will receive UPI mandate and I got the mandate , of course , I am not going to accept it.

ok means last day you checked and checked with 2 or more lots, means in hni category.....fine then...
i have again replied on my zerodha ticket, lets see what they....i could have also checked myself by trying in rachana, missed to check....will try tomorrow in aether anyways then will reply them again with proof....

I think your application couldn't complete , may be due to delay in processing.
If I remember correctly , only 2/3 minutes was left. That was the reason, I mentioned 3:55PM.

@Kanwarjit ji
If your time horizon is long term and price going below issue price doesn't worry you then it's a portfolio stock.
If you are looking for listing gain only then it's very hard to say because midcap and small caps are mercilessly beaten down.
If you feel scared then cancel the application because peace of mind is more important than money. You can buy when it may available at lower price.

7.9% stake in ITC is also on list for disinvestment.
Government isn't in hurry and they have not fixed timeline and are flexible as per market condition and they target these disinvestment till Sep'22.
For FY'22 Disinvestment target of govt is 65K crore and HZL value around 37K cr and ITC around 26K cr. It seems government will surpass its disinvestment target this year.

If company is good, it let you buy at good price.

Rules are good. because there is no leverage. You buy if you have a good view. Else do not buy

There is nothing wrong with HNI new pattern. It is company management which is failing to inspire HNI segment to hold allotment of 2 lakh
Most of the company management may know about business but have not put that information in RHP so they don't know how to convey their underlying story. But end of the day listing day pressure is their problem as much as it is the problem of applicant. Classic case being LIC - Do you see any information about embeded value and how it will drive valuation

@ arunarun

most of retailers and newly became small HNIs apply for short term listing gain,
now they have multiple lots ,
most of retailers don't see long term fundamentals and that's why sealing pressure is coming as now everyone is getting easily multiple lots and they are not capable to hold 2 Lakhs of shares for long term

so new HNI rules is not good for average IPos and short term listing gain

Clean issued shares at pe of 50 not at higher price like Aether

The price point of 642 makes me uncomfortable..... Had the issue been priced around 550, it would have been a win-win for the company as well as the investors.

Jetha Lal ji, No disrespect as you are a senior member.
Question is not 'is trading', but 'will it trade' at 80 PE down the road. Given fleeing FII/FPI, depreciating Rs , inflation and less disposal income. Every company has to take a hit on margins (more or less), however 'Special' it is.
I may not be correct. AS,
I may value a company however masses may not (or vice versa).

@arunARUN ji
Yes, Clean came at P/E of 48.2(at issue price) and it left something on table so market also rewarded it and after recent correction still up by 90% over issue price.
It's most beautiful company in speciality chemical sector.
Aether is asking valuation at bit higher and they are not leaving anything much on table for investors. The valuation is in line with peers and not undervalued. I have already said that it may not make money on listing but it's a portfolio Company because of its chemistry, products, expansion (will tripple its sales in 3-4 years), margin expansion etc.
You were asking about Clean Science share price decline. There may be few reasons:
1. Crude oil derivatives are raw material for most of chemical company and prices went up sharply so margin is getting impacted.
This problem will be with Aether too.
2. Clean's ~1/3rd revenue comes from China and at present lockdown in China may be impacting sales.
3. Mid cap index corrected by almost 20% and clean was trading at exorbitant premium so it also fell in line with broader market correction.

@MOG ji
They have made two Pre-Ipo placement at Rs 642 raising 103 crore in Nov-21 and 130 crore in May-22 from White Oak, IIFL, SBI MF etc. Institution is giving them forward looking valuation because of their rapid expansion plans. We as retail investors can also wait till post listing to accumulate it at lower price.

@ShiningShiva ji
In broader market correction every stock falls and premium/high beta stocks fall bit more and when market recovers then those stocks recover most sharply (best example of Indian market is Bajaj Finance).
We need to understand why market give some stocks very high premium (ex: Asian paints, Pidilite, Bajaj Finance, Titan, Clean etc) and some stocks very cheap valuation (Ex: PSU stocks, Fertilizer Stocks etc).
The reasons of for this valuation difference are leadership of products, growth, margin, promoter, sector, DII&FII interest etc.
On most of front Aether is doing really well.
Only concern I feel in near term is margin may get impacted temporarily because of raw material(crude derivatives) price increase.
✓Rs depreciation is positive for both clean as well as Aether because 70% and 50% respective sales come from export.
✓ inflation and less disposable income most impact FMCG and discretionary sector and not much to Pharma(60% of Aether sales comes from this sector)
✓ DII are very well absorbing FII void and sooner or later FII will have to come back to indian market.

Thank you!

yes valuation is a little concern here since it doesn't give enough room for good listing gains or for short term.....its PE at issue price is already at 72 based on FY22 annualized profits, which have already shown so much growth in comparison to FY21 profits (generally seen in all ipo's)....
so its performance in medium/long term will mainly depend on how much it can expand in business/sales, how much it can grow financially from current numbers. So in short term, it may go max around 700-720 levels and max downside around 580-600 levels....rest a lot depends on market/sector situation too....

@lokes sir
I agree with you they didn't leave anything on table like Clean did and they are demanding valuation in line with peers.
Nothing much left for listing gain and whatever analysis I did is for long term purpose and we can accumulate too post listing if available at lower price.
The company will add 8500 MTPA (4000MTPA in 2022 and 4500 MTPA in 2023) which will take its production capacity from present 6100 to 14600 MTPA in next 3-4 years resulting in 2.5 to 3 times of present topline and if they can continue with margin expansion then it will be double boost for stock price.

There are some redflags too:
1. Raw material comes from crude derivatives and price of raw materials are rising rapidly and this will dent margin in near term.
2. There is high product revenue and client concentration risk as a single product account for 20% of revenue and 8/24 products account for 80% of revenue. Top 20 customers account for 73% of revenue.
New product launch is due this year and they are diversifying its product portfolio and they have long and superb relationship with their clients and clients are very well known marquee players.

@admin... such informative messages like these once posted by @Jetha Lal should have a different weightage, like 1 message equal to 10 general messages, as they are hugely beneficial in decision making of general public and are with full fact and figures.

@Jetha Lal... If admin doesn't agree, pl consider splitting your long messages to 10-20 one liner messages so that your total message count reaches 1000 in shorter time. Not for you, it is embarrassing for us to have higher rank tag over yours.

Really appreciate your contribution... Thanks

@Avenue sir
Thanks a lot for kind and appreciating words. It makes feel good when IPO gurus and senior members praise for information and data provided.

I don't split long messages because my intention is to provide wholesome data and information at one place so that it can be beneficial for forum members to take decision by analysing complete scenario. These tags are temporary and it keeps on changing, information and knowledge should keep on flowing for larger interest of forum members.

It's your kindness and humbleness that you say i contribute more than you but the truth is I learn a lot from senior forum members including you sir who selflessly share wonderful knowledge and their experience.

Once again sincerely thanks to you for acknowledging my efforts and it gives me immense confidence to contribute more.

@ Avenue
I am agree with you
@Jethalal have so much experience and long term view
Wo unke msg se hi pata chalta he
He must have ipo guru tag

@krupa ji
Thanks a lot for your kind words 🙏
I feel myself to be just a learner and I try to share my learning, knowledge and experience.

GMP only Rs Rs 7. Will vanish till listing day