Ashish Kacholia-backed Aeroflex Industries made bumper listing at 82% premium

31 Aug 2023 , 10:13 AM

Aeroflex Industries, with an initial public offering (IPO) worth Rs 351 crore, made its debut on the BSE stock exchange on August 31, 2023. The shares of Aeroflex Industries were introduced at Rs 197.40 on the BSE, marking an impressive 82.78% premium over the issuance price of Rs 108. On the NSE, the shares started at Rs 190.

The IPO of Aeroflex Industries garnered a strong and enthusiastic response, driven by robust demand across various investor categories. Overall, the offering received a remarkable oversubscription of 97 times at the time of closure.

Among the different categories of investors, the qualified institutional buyers displayed the highest level of interest with a subscription rate of 194.7 times. Following closely, the non-institutional investors’ segment exhibited substantial interest with a subscription rate of 126.10 times. Shareholders in the reserved category subscribed at a rate of 28.51 times, while the retail portion experienced a subscription rate of 34.35 times.

Aeroflex Industries is engaged in exporting Make-in-India metallic flexible flow solutions to more than 85 countries. Export activities contribute to over 80% of the company’s total revenues. Notably, the company has achieved a noteworthy revenue Compound Annual Growth Rate (CAGR) of over 37% in the past three years. It operates with an asset turnover of more than 4.85 times, maintains EBITA margins exceeding 20%, and generates a Return on Capital Employed (ROCE) of approximately 32%.