Ami Organics share price rallied 20 per cent to a fresh all-time high of Rs 1,121.45 apiece intraday on BSE. The specialty chemicals company made a strong debut on Tuesday, listing at a premium of 49 per cent. Since listing, Ami Organics stock price has soared over 23 per cent while 84 per cent from the issue price of Rs 610 per share. The initial public offering of Ami Organics was subscribed 64.54 times. Analysts say that a strong listing coupled with extreme positive sentiment in small and midcap stocks has led to strong buying in Ami Organics. “Technically, Rs 1166 will be the immediate resistance. Closing above this level could see a target of Rs 1290. Support remains at Rs 1040,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
At 3 PM, Ami Organics stock was trading 20 per cent higher at Rs 1,121.45 on the BSE, as compared to 0.88 per cent rise in the S&P BSE Sensex. In traded volume terms, 3.76 lakh equity shares exchanged hands on BSE, while 42.13 lakh units have traded on NSE, so far in the day. Ami Organics has now joined its listed industry peers such as Aarti Industries, Hikal, Valiant Organics, Vinati Organics, Neuland Organics and Atul Ltd.
Analysts at Motilal Oswal Financial Services said that Ami Organics seems to be well placed to tap opportunity in the fast growing specialty chemical market by leveraging its strong R&D and expanding product portfolio. It has a wide product portfolio in PIs, diversification efforts into other specialty chemical space, strong clients’ relation across geographies and robust financials.
The brokerage firm also added that by FY21-end, Ami Organics completed the acquisition of Gujarat Organics, which enhanced its capacity by 3,600 MTA to 6060 MTA. “The acquisition would add preservatives (parabens – end usage in cosmetics, animal food, personal care) and other specialty chemicals (end usage in cosmetics, dyes polymers, agrochemicals) into AOL’s existing portfolio, which command significant market share globally,” it added.
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