Advanced Enzyme Technologies makes spectacular debut, surges 31.50% over issue price

NEW DELHI: Shares of Advanced Enzyme Technologies made a spectacular debut on NSE on Monday by listing at Rs 1,210, a premium of 35.04 per cent over its issue price of Rs 896. The public offer, which ran between July 20 and July 22, was subscribed 116.91 times.

The stock eventually closed at Rs 1,178, up 31.50 per cent over its issue price of Rs 896.

The company is engaged in research & development, manufacturing and marketing of 400 proprietary products developed from 60 indigenous enzymes.

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“Advanced Enzyme is a very exciting and unique story with high entry barriers. The fact that the company has been able to maintain its dominant position in the enzyme industry with consistent healthy operating margins has attracted high investor interest in the public offering. The extraordinary oversubscription is a testimony of the faith reposed by the investors in novel, R&D backed companies,” said Ajay Saraf, Executive Director, ICICI Securities.


The company posted 14.4 per cent sales growth CAGR during FY2012-16. But the firm managed to log a strong Ebitda growth at 22.1 per cent CAGR during the period.

It ranks among the top 15 global companies in terms of enzyme sales and has the second highest market share domestically, next only to the world's largest enzyme company Novozymes, Advanced Enzyme's Managing Director Chandrakant L Rathi told reporters.

Top 10 customers accounted for 41.5 per cent of the company's total revenues in FY16 on a consolidated basis.

Net profit for the period grew at 23.9 per cent CAGR. The top 10 customers accounted for 41.5 per cent of the company's total revenues in FY16 on a consolidated basis.

"Our debt on the books stands at Rs 101 crore at present, out of which Rs 40 crore will get reduced from the IPO. We have also been regularly paying other debts, which are on the books. So we expect the debt to be less than Rs 50 crore going forward. Also, it could be totally debt free in a couple of years," L Rathi, MD, Advanced Enzymes Technologies recently told ET Now.