New Delhi: Aether Industries is likely to buck the trend of muted quotes as the company signals a positive surprise on Friday when the stock debuts on Dalal Street. Just a day before listing, shares of Aether Industries were commanding a premium of 25-30 rupees per share on the gray market, about 5% above its issue price of 642 rupees each.

Gray market participants are positive on the issue and suggest the issue is heading for a positive surprise due to its niche business, experienced management, strong fundamentals and solid response.

Amarjeet Maurya, AVP – Mid Caps, Angel One, said the company has reasonable valuations with a diverse customer base, strong financial track record and higher ROE.

“Given all the positive factors, we believe this valuation is at reasonable levels,” he added. “So we’re positive on the long-term IPO.”

Aether Industries’ initial public offering (IPO) opened for subscription between May 24-26 as the company sold its shares in the Rs 610-642 range to raise Rs 808 crore via the mainline.

The issue received strong investor reception with an overall subscription of over 6.26x, thanks to strong auctions from institutional buyers whose share was subscribed 17.6x and the HNI allocation increased. been booked 2.5 times.

Senior analyst Aayush Agrawal said the question received a good response from investors, especially institutional buyers, but the failed gray market action is limiting short-term upside and upside.

“However, we believe the company deserves this premium multiple due to its phenomenal growth prospects,” he added. “We expect a positive rating for the issuance, and after the listing, long-term investors may accumulate the shares.”

Incorporated in 2013, Aether Industries is a specialty chemicals manufacturer and a unique player in certain categories. The company is the world’s largest manufacturer of 4MEP, T2E, NODG and HEEP products by volume.

Aether Industries has two manufacturing sites at Sachin in Surat, Gujarat. Its product portfolio included over 25 products sold to over 34 global companies in 18 countries and over 154 domestic companies as of March 31, 2022.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)