Aether Industries

IPO narrative

  • Unique CRAMS player; sole player and leader with pricing power in certain products
  • R&D / Sales ratio = ~6%
  • Technocrat promoters -> Lab -> Pilot scale -> Commercial scale
  • Global innovators, giants as customers (e.g. Saudi Aramco, Baker Hughes, Polaroid etc.)
  • Scarcity premium @ IPO (87% promoter owned on listing day)
  • Day 1 post IPO: Institutions owned > 10% post IPO; Retail < 3%; Promoters > 87%
  • Minimal equity dilution; Minimal float; Maximum FOMO
  • Premium listing @ 21x sales, 85x EBITDA; Peak valuations @ 25x sales, 100x EV/EBITDA
  • Informed seller vs ignorant buyer?
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Image source: Framing Business Certainty by Sajal Kapoor

  • Numbers must match the narrative
  • Narrative must match the numbers
  • Validate the story from both ends
  • IPOs: informed seller vs ignorant buyer
  • MOAT: Molecule-Market-Relationship-Regulatory**
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PI Industries

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