The company had made its market debut earlier in the day at ₹706.15, a 10% premium over its IPO price of ₹642.
The stock’s closing level is also its upper circuit limit for the day.
Analysts said the recent rebound in the market and strong growth prospects of the company prompted investors to take a positive view on the stock in a market where recent listings have been either muted or discounted.
Aether Industries raised ₹808 crore through its initial offer last month. The issue ran between May 24 and May 26 and the company sold its shares in a price band of ₹610-642 per share. The IPO was subscribed 6.26 times due to strong response from institutional buyers whose portion was subscribed 17.6 times. HNI and retail portions were subscribed 2.52 and 1.14 times, respectively, while the employee quota was subscribed 1.06 times.
Ahead if the IPO, brokerage Anand Rathi had recommended subscribing to the IPO with a long-term view. The brokerage said valuation of 72.3 times on annualised basis of FY22 earnings looks fairly valued.
“Aether is known to have strong market positioning in complex intermediates where global competition is intense,” said Rathi.
“Aether is expected to continue to maintain its leadership position in a few of its products due to continuous focus on research and development, enhanced capacity post expansion plans, synergistic business models, differentiated product portfolios of market leading products and long standing relationships with a diversified customer base,” said Rathi.
Meanwhile, Choice Broking had recommended to ‘subscribe with caution’ to the IPO.
“Considering its dominant position in the select specialty chemicals and growth prospects from the end use applications, we feel the company has buoyant outlook. However, a stretched valuation is a concern,” said Choice Broking.