Rs 351 crore Aeroflex Industries IPO opens on August 22; check details here

22 Aug 2023 , 09:30 AM

Mumbai-based manufacturer and supplier of environment-friendly metallic flexible flow solution products, Aeroflex Industries has opened its IPO. The issue will be commencing on August 22 and will conclude on August 24.

Backed by marquee investor Ashish Kacholia, Aeroflex Industries was incorporated in 1993. It manufactures products including braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators, and related end fittings. As on March 31, 2023, the company recorded more than 1,700 Product SKUs (Stock Keeping Units) in its product portfolio.

Important details of Aeroflex Industries IPO:

• Issue Size: The company want to raise Rs 351 crore from the maiden public offer. This includes fresh issue of equity shares worth Rs 162 crore and an offer for sale of 17,500,000 shares by promoters and shareholders.
• Price Band: Aeroflex Industries has fixed price band at Rs 102 to Rs 108 per share for its initial public offering.
• Lot size: Investors who want to apply for the IPO can bid for 130 shares and its multiples in a lot.
• Minimum investment: Retail investors are required to make a minimum investment of Rs 14,040 per lot, which consists of 130 shares. On the other hand, the maximum investment permitted for retail investors is Rs 196,560, which corresponds to 1820 shares (equivalent to 13 lots), as they are allowed to invest up to Rs 2 lakh in the IPO.
• The IPO offer is divided into three categories: 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% is allocated to high-net-worth individuals (HNIs), and the remaining 35% is reserved for retail investors.
• Anchor book: The anchor investment for the IPO will take place on August 21.
• IPO objectives: The company will use net proceeds from the IPO towards payment of debt availed by the company, funding working capital requirements and for other general corporate purposes.
• Basis of allotment: The company will finalise the allotment of shares on August 29.
• Listing date: The shares of Aeroflex Industries are expected to list on BSE and NSE on September 1.

Pantomath Capital Advisors is the merchant banker for the issue, while Link Intime India is the registrar of the offer.

The flexible flow solutions provider, whose primary revenue source comes from exporting its products to more than 80 countries, has achieved a 9.6% year-on-year growth in consolidated profit, reaching Rs 30.15 crore for the fiscal year ending in March FY23. Over the same period, the company’s revenue experienced an 11.9% increase, amounting to Rs 269.5 crore, and its EBITDA (earnings before interest, tax, depreciation, and amortization) expanded by 15.7% to Rs 54.03 crore. Notably, the EBITDA margin also showed improvement, growing by 66 basis points year-on-year to reach 20.05% during the previous financial year.