Advanced Enzyme Technologies: a must watch IPO

Advanced Enzyme Technologies is coming out with an Initial Public offer (IPO) with a price band of Rs 880 to Rs 896 per equity share. The issue will be open from July 20 to July 22. It will raise Rs 355 crore to Rs 362 crore. The face value of the company will be Rs 10. There will be a prerequisite related to a minimum order quantity of 16 shares and multiples after that.

The objective of the IPO is to invest in Advanced Enzymes USA, the wholly owned subsidiary, for repayment or pre-payment of certain loans availed by Advanced Enzymes USA. The company will also utilise funds for general corporate purposes. Advanced Enzyme Technologies shares will be listed on BSE and NSE exchanges.

On the financial front, Advanced Enzyme Technologies’ revenue has increased by 31.6 per cent to Rs 294 crore in FY16 on a yearly basis. The company’s operating profit has been boosted by 52 per cent to Rs 138 crore in FY16 as compared to previous fiscal year. Its PAT also has risen by 56.5 per cent to Rs 78.4 crore in FY16 on a yearly basis.

Advanced Enzyme Technologies is engaged in research, development, manufacturing and marketing of Healthcare, Nutrition and Bio-Processing products. The company produces over 400 proprietary products developed from 60 enzymes. Advanced Enzyme operates in two primary business verticals, namely Healthcare & Nutrition (human and animal); and Bio-Processing (food and non-food). It has 13 patents registered in its name and applications for registration of 4 patents are pending.