AMBEY LABORATORIES LIMITED are a conglomerate of enterprises, deeply rooted in the Agrochemical sectors. Their operations span across India and abroad with manufacturing facility in Rajasthan, India.

Ambey Labs IPO, a Book Built issue amounting to ₹44.67 crores, consisting a Fresh Issue of 62.58 lakh Shares worth ₹42.55 Crores and an offer for sale of 3.12 Lakh shares totalling ₹2.12 Crores. The subscription period for the Ambey Labs IPO opens on July 4, 2024, and closes on July 8, 2024. The allotment is expected to be finalized on or about Tuesday, July 09, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Thursday, July 11, 2024.

The price band of Ambey Labs IPO is set at ₹65 to ₹68 equity per share, with a minimum lot size of 2000 shares. Retail investors are required to invest a minimum of ₹136,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (4000 shares), amounting to ₹272,000.

FAST TRACK FINSEC PRIVATE LIMITED is the book-running lead manager, LINK INTIME INDIA PRIVATE LIMITED is the registrar for the Issue. NIKUNJ STOCK BROKERS LIMITED is the sole market maker for the Ambey Labs IPO.

Ambey Laboratories Limited IPO GMP Today
The Grey Market Premium of Ambey Laboratories Limited IPO is expected in the range of ₹25 - ₹30 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Ambey Laboratories Limited IPO Allotment Status
Ambey Laboratories IPO allotment date is 09 July, 2024, Wednesday. Ambey Laboratories IPO Allotment will be out on 9th July 2024 and will be live on Registrar Website from the allotment date. Check Ambey Laboratories Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Ambey Laboratories Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Ambey Laboratories Limited IPO

Ambey Laboratories Issue Proceeds from the Fresh Issue will be utilized towards the following objects :
1. To meet out the Working Capital requirements of the Company
2. To meet out the General Corporate Purposes
3. To meet out the Issue Expenses

Refer to Ambey Laboratories Limited RHP for more details about the Company.

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About AMBEY LABORATORIES Limited

Ambey Laboratories is engaged in the business of manufacturing of agrochemical products for the protecting of crops and it’s been almost four decades the company serving the agrochemical sector. The company manufactures and supplies '2,4-D base chemicals' with an emphasis on quality and strict compliance with Environmental, Health, and Safety (EHS) regulations, within the chemical industry. The company has Programmable Logic Controller (PLC) and Supervisory Control along with Quality Assurance Department which ensures testing through HPLC, GC, UV etc. at every stage of production at their manufacturing facility installed, integrated and operating at 5 Acres Facility in the region of Behror, Rajasthan, India for manufacturing of “2, 4-D base chemicals”.

Due to backward integration of their products, their plant is ZLD (Zero Liquid Discharge) to ensure minimum emissions and waste generation. They explore downstream products from their core intermediaries to meet and exceed customer expectations and operation ensures organized inflow state of the art manufacturing and supply sustainability to their valued customers. Their Company works within an interconnected network alongside Aromatic Rasayan Private Limited and OFB Tech Private Limited.

Their vision, "Globalizing and Diversifying Towards Higher Wealth Creation," guides every step of their journey, with a global footprint that extends across Latin America, the Middle East, Africa, the Asia Pacific, South Asia, and Eastern Europe, they've firmly established their presence on the international stage, abroad.

INDIAN CHEMICAL SECTOR

India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP covering more than 80,000 commercial products and employing more than 2 million people. India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemical, petrochemicals, polymers, and fertilizers. A network of 200 national laboratories and 1,300 R&D centers provides a strong base to the Indian chemical industry to drive innovations. This sector, which is currently estimated to be worth US$ 220 billion in 2022 and is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040.
As per Chemexcil (Chemicals Export Promotion Council), India’s agrochemical export was estimated to be at US$ 1.04 billion from April 2023-June 2023 (Provisional). Indian colorants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for few hazardous chemicals. India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals). From April 2023 to June 2023 (provisional), India's dye exports (Dyes and Dye Intermediates) totaled US$ 561.56 million.

Over the last few years, the Indian chemicals sector has exceeded all shareholder expectations, outperforming not just the overall equity market but also the majority of its upstream and downstream industries. This exceptional growth has been fueled by consistent revenue expansion, increasing margins, and rise in multiples. India is expected to become a $850-1000 Bn chemicals market by 2040, taking 10-12% share of the global chemicals market.

Chemicals market in India :

India accounts for 2.5% of the world’s global chemical sales, exporting to more than 175 countries that is contributing 7% to India’s GDP. The industry is expected to reach US$ 304 billion by 2025 at a CAGR of 9.3%, driven by rising demand in the end-user segments for speciality chemicals and petrochemicals segment. Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040. From April 2023 to June 2023 (provisional), India's dye exports (Dyes and Dye Intermediates) totaled US$ 561.56 million. Specialty chemical companies are seeking import substitutions while exploring export opportunities to accelerate their business. The petrochemical demand is expected to record a 7.5% CAGR between 2019 and 2023, with the demand for polymers growing at 8%. India is the third largest polymer consumer in the world and is expected to consume 60 million tonnes by 2040. Chemicals and Chemical Products gross bank credit grew by 15.6% in May 2022. The agrochemical market in India is expected to register an 8.6% CAGR to reach US$ 7.4 billion between 2021 and 2026. Specialty chemicals account for 20% of the global chemicals industry's US$ 4 trillion, with India's market expected to increase at a CAGR of 12% to US$ 64 billion by 2025. This gain would be driven by a healthy demand growth (CAGR of 10-20%) in the export/end-user industries.

Chemical's market is split into five key segments: -

➢ Bulk chemicals: - These are groups of chemicals, which are manufactured on a largescale and further dividedinto organic, inorganic and alkali chemicals.
➢ Petrochemicals& polymers: - These chemicals are derivative of severalchemical compoundssuch as hydrocarbons,which are derived fromcrude oil or natural gas.
➢ Fertilisers:- These provide nutrients for plant growth; are divided into organic/inorganic and natural/synthetic. Further,these can be broadly classified into phosphate,potassium and nitrogenous.
➢ Specialtychemicals: - These are derivatives of basic chemicals that aremanufactured for specificenduse solutions. The characteristics of these chemicals include high- value, high R&D and low volume.
➢ Agrochemical: - These chemicals areused to protect crops against insects and pests and include fungicides, herbicides, and insecticides, among others. These chemicals can be applied in water irrigation, seeds, soils and crops.

Chemical sector production capacity: -
Major chemical production reached 874.30 million metric tonnes (MMT) in February 2023, while petrochemical production reached 1,773.74 MMT. In February 2023, production levels of various chemicals were as follows:

⚫ Soda Ash: 250.87 MMT
⚫ Caustic Soda: 269.17 MMT
⚫ Liquid Chlorine: 201.48 MMT
⚫ Formaldehyde: 19.13 MMT
⚫ Pesticides and Insecticides: 17.01 MMT

At the CPMA - Argus Petrochemical Online Forum held on August 25, 2021, President of India's Chemicals and Petrochemicals Manufacturers Association (CPMA), Mr. Kamal Nanavaty, said that the Indian petrochemicals industry will have to increase its production capacity tenfold to meet higher demand by 2050. He also highlighted that India's consumption is estimated to double every nine years at an annual rate of 8%.

Agrochemical in India: -

Globally, India is the fourth-largest producer of agrochemical after the United States, Japan and China. India is the fourth India is a net exporter of agrochemical and the thirteenth- largest exporter of pesticides and disinfectants. The country’s exports have increased on the account of low-cost manufacturing, availability of technically trained manpower, seasonal domestic demand, overcapacity, competitive pricing and strong presence in generic pesticide manufacturing.
Rise in demand in the agricultural segment is driving growth of agrochemicals in India. In October 2020, the government urged players in the agrochemicals industry to come out with new molecules of global standards for the farmers' benefit, while CropLife India, the industry body, pitched for stable policies and regulatory regimes to boost growth in the sector.
Agrochemical in India is currently a US$ 5.5 billion market, growing at a CAGR of 8.3%. By 2040, it is expected to account for almost 40% of India’s overall chemicals exports. As per Chemexcil (Chemicals Export Promotion Council), India’s agrochemical export was estimated to be at US$ 5.37 billion from April 2022-March 2023 (Provisional).

AMBEY LABORATORIES LIMITED STRENGTHS

1. Experienced Management Team
2. Prime Location of their Manufacturing Facility
3. Quality Assurance and Standards
4. Cordial Relationships with their Suppliers

AMBEY LABORATORIES LIMITED STRATEGIES

1. Continue improving financial performance through focus on operational and functional efficiencies
2. Backward integration for Manufacturing Raw material and forward integration of Finished Goods.
3. Increase in Installed Capacity
4. Leveraging their market skills, relationship and leadership position in 2, 4 D
5. Increase wallet share with existing customers and continued focus to expand customer base.

AMBEY LABORATORIES LIMITED RISK FACTORS & CONCERNS

1. Some of the raw materials that they use as well as their finished products are hazardous, corrosive and flammable and require expert handling and storage, as applicable.
2. The seasonality of the business of the issuer may affect the business of the issuer.
3. Their business is dependent on their manufacturing facilities.
4. Rajasthan State Pollution Control Board has directed the company to deposit the amount to the tune of Rs.1,92,02,400 towards environment compensation.
5. Substantial portion of their revenues has been dependent upon their few clients.