Shares of Aether Industries closed more than 3 percent down on June 23, a day after the pharmaceuticals company closed its Qualified Institutional Placement (QIP) issue. Market participants attributed the decline to investors booking profits as the stock rallied around 25 percent over the last month.
The Surat-based company raised around Rs 750 crore through the QIP by allotting a little over 8 million shares at Rs 936 apiece. The QIP price was at a discount of around 19 percent to the previous day’s closing price.
QIP allows a company to raise funds from the market but only qualified institutional buyers can participate, unlike an initial public offering where retail investors also join in.
SBI Mutual Fund acquired 40 percent of the total issue size and bought around 32 lakh shares. Axis Mutual Fund bought around 8 lakh shares and acquired 13 percent of the issue. Apart from these two domestic mutual funds, Edelweiss Mutual Fund, Goldman Sachs Fund and Bandhan Mutual Fund also bought into the issue. The specialty chemical company issued shares to 38 institutional investors.
Aether Industries has also signed an agreement with Saudi Aramco Tech for "converge polyols technology" in early June. The agreement initiates Aether’s activities towards the manufacturing and commercialisation of converge polyols technology and product series.
The company focuses on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.
The stock closed at Rs 1,127 on the National Stock Exchange, down 3.34 percent from the previous close.
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