Aeroflex Industries IPO 2023:
Mumbai-based Aeroflex Industries, a subsidiary of Sat Industries, is gearing up for its Initial Public Offering (IPO) in 2023. The company has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise approximately ₹350 crores through the public offer. The net proceeds from the fresh issue will be utilized for the prepayment of outstanding secured borrowings availed by the Company, funding its working capital requirements, and for general corporate purposes and acquisitions for inorganic growth.
The IPO will consist of a face value of ₹2 per equity share, with a fresh issue of equity shares worth up to Rs. 160 crores and an offer-for-sale (OFS) of up to 17.5 million equity shares by promoters selling shareholders and promoter group. The Company, in consultation with the BRLM, may give a discount to eligible shareholders of its Promoter, Sat Industries Limited.
The offer is being made through the Book Building Process, with not more than 50% of the Offer available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer for allocation to Non-Institutional Investors, and not less than 35% of the Offer for allocation to Retail Individual Investors. Up to 10% of the Offer shall be reserved for the shareholders of Sat Industries Limited.
Pantomath Capital Advisors Private Limited is the sole book-running lead manager, and Link Intime India Private Limited is the registrar to the offer. The company’s equity shares are proposed to be listed on the BSE and NSE.
According to the DRHP, the proceeds from the fresh issue will be utilized to the extent of ₹35 crores for the prepayment of outstanding secured borrowings availed by the Company, Rs. 84 crores for funding its working capital requirements, and certain amounts will be used for general corporate purposes and acquisitions for inorganic growth.
Financials of the Aeroflex:
In fiscal 2022, Aeroflex Industries generated consolidated revenue from operations of Rs. 240.8 crores. The company had EBITDA of Rs. 46.7 crores and EBITDA margin of 19.4%. The company’s profit after tax for Fiscal 2022 was Rs. 27.5 crores, with a PAT margin of 11.4%. The company’s Return on Equity (RoE) and Return on Capital Employed (RoCE) were 31.9% and 36.3% for Fiscal 2022, respectively. The company has low leverage, with a debt-to-equity ratio of 0.45 as of January 31, 2023.
About Aeroflex Industries:
Aeroflex Industries specializes in the production of stainless steel corrugated hoses. The product line consists of a diverse collection of metallic flexible hoses and hose assemblies constructed from austenitic steel. These high-quality products are designed to meet international standards and are sold to a global clientele, including refineries and specialized industries.
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