Aeroflex Industries IPO Nod Granted by SEBI
Aeroflex Industries, a leading manufacturer of metallic flexible flow solutions, has gained the green light from the Securities and Exchange Board of India (Sebi) to initiate its upcoming public offering.
The company’s primary objective is to secure Rs 350 crore through its initial public offering (IPO). This fundraising effort will encompass a fresh issuance of equity shares valued at Rs 160 crore, along with an offer-for-sale of 1.75 crore equity shares by its promoters, SAT Industries and Italica Global FZC.
Aeroflex Industries submitted its draft IPO documents to Sebi on March 31. Subsequently, on July 31, the regulatory body issued an observation letter, marking a significant step forward for the IPO’s progression.
The issuance of an observation letter by Sebi allows the company to move ahead with its intended initial share sale.
Aeroflex Industries, a subsidiary of the publicly listed diversified conglomerate SAT Industries, intends to allocate the funds generated from the fresh issue towards debt repayment, addressing working capital needs, fulfilling general corporate requirements, and pursuing potential inorganic acquisitions.
With a diverse product portfolio comprising 1,700 stock keeping units (SKUs), Aeroflex Industries conducts exports to over 80 countries. Notably, exports accounted for 80.85 percent of the company’s revenue during the ten-month period ending in January 2023.
Flexible flow solutions play a pivotal role in facilitating the transfer of substances, including air, liquids, and solids, within industrial and commercial ecosystems. These solutions establish connections between the origins and endpoints of various processes. For instance, applications range from fire sprinklers and gas supply to aircraft airflows, fueling, and hydraulic systems.
As of the draft filing, SAT Industries held a majority stake of 92.18 percent in Aeroflex, while Italica Global FZC, the other promoter, possessed 6.52 percent. The remaining 1 percent was owned by the public.
In recent months, SAT Industries executed secondary transactions with several investors, including Ashish Kacholia, Carnelian Structural Shift Fund, VPK Global Ventures Fund, and Samedh Trinity Partners, during May and June of this year. The company successfully transferred 86.95 lakh equity shares to these investors at a per-share price of Rs 87.56, thereby raising Rs 76.13 crore in funds.
The merchant banker overseeing the IPO is Pantomath Capital Advisors.
About Aeroflex Industries:
Aeroflex Industries Limited functions as a steel producer, offering a range of products including hoses, braids, assemblies, end connectors, and couplings. The company serves a global customer base.
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