In July 2018, when Sensex was hovering around 36200, Surat-based Ami Organics filed the draft red herring prospectus for its IPO. That time, it intended to raise about Rs 100 cr by offering 35 lakh shares. The company’s authorized capital was Rs 15 Cr of which Rs 10.50 Cr was paid-up. The company proposed to raise an additional capital of only Rs 3.5 cr. Of the issue proceeds, Rs 33 cr was earmarked for repayment of loan, Rs 45 cr was meant for long term working capital, Rs 19 cr were to be spent on Research & Development CAPEX programme and   the balance were to be kept for General Corporate Purposes.

The DRHP presented Girishkumar Limbabhai Chovatia,   Nareshbhai Ramjibhai Patel and Chetankumar Chhaganlal Vaghasia as the promoters of the company holding 32.7% of the issued capital. In fact, the promoters’ spouses were collectively holding more (48.3%) which put the stake of the promoter group at 81%.

Come mid 2021. The revised draft offer document dated June 4, 2021 claims that there was a separation agreement dated March 31, 2021 pursuant to which, Girishkumar Limbabhai Chovatia ceased to be a promoter of the company with effect from March 31, 2021 and his immediate family members and related companies/entities ceased to be the members of the promoter group of Ami Organics. Accordingly, the promoters’ stake declined to less than 50%.

Post 2018-DRHP, the company has hiked its authorized capital to Rs 50 cr, has issued a two for one bonus thereby enlarging the equity base to Rs 31.5 cr. And, as the stock indices scale new peaks, the company now wants to raise a larger amount of Rs 300 Cr.  The amount of loan repayment has now more than quadrupled to Rs 140 Cr. Long term working capital has doubled to Rs 90 cr.