Specialty chemicals company Ami Organics will launch its initial public offering (IPO) on September 1. The public issue comprises a fresh issue of Rs 200 crore and an offer for sale (OFS) of 6.06 million equity shares by selling shareholders including Parul Chetankumar Vaghasia, Girishkumar Limbabhai Chovatia, and Kiranben Girishbhai Chovatia.

The company has reduced its fresh issue size to Rs 200 crore from Rs 300 crore after fundraising of Rs 100 crore in a pre-IPO placement. The proceeds from the issue will be used for repayment of financial facilities of upto Rs 140 crore. The firm will also use upto Rs 90 crore for funding working capital requirements. As of March 2021, its net debt stood at Rs 218.73 crore.

An OFS consist of upto 7 lakh shares by Parul Chetankumar Vaghasia, upto 1.5 lakhs shares by Girishkumar Limbabhai Chovatia, upto 3.05 million shares by Kiranben Girishbhai Chovatia, upto 1.74 lakh shares by Aruna Jayantkumar Pandya. The firm in its DRHP said that it is in consultation with its book running managers for pre-IPO placement of upto Rs 100 crore.

The price band and lot size will be announced through a press conference on August 27. The public issue will close on September 3.

Ami Organics manufactures specialty chemicals that are used towards the development and manufacturing of advanced pharmaceutical intermediates for regulated and generic active pharmaceutical ingredients (APIs) and New Chemical Entities (NCE), and key starting material for agrochemical and fine chemicals. It has developed and commercialised over 450 pharma intermediates for APIs across 17 key therapeutic areas since inception and NCE.

Intensive Fiscal Services, Ambit, and Axis Capital are the book running lead managers to the issue.