Aeroflex Industries IPO Day 2: Subscription Status
Investor enthusiasm is on full display as Aeroflex Industries, a leading manufacturer of flexible flow solution products, witnesses an overwhelming response during its public offering. The second day of bidding, August 23, witnesses an impressive 14.86 times oversubscription, with bids pouring in for a staggering 34.49 crore equity shares against the initial offer size of 2.32 crores.
A diverse spectrum of investors demonstrates keen interest in the IPO, with high net-worth individuals displaying substantial confidence by subscribing 33.17 times the allocated quota. Simultaneously, retail investors exhibit their enthusiasm by oversubscribing 14.24 times the portion reserved for them.
Promoter Sat Industries’ stakeholders show their support by bidding 7.3 times the reserved portion, equivalent to 5 lakh shares of the overall offer size. On the other hand, qualified institutional buyers, who hold 50 percent of the IPO size, exhibit a robust response by subscribing 2.22 times.
In adherence to the allocation structure, 15 percent of the IPO shares are reserved for high net-worth individuals, while the remaining 35 percent is earmarked for retail investors.
On its debut day, August 22, the Rs 351-crore public issue garners impressive attention, receiving an oversubscription of 6.72 times.
The IPO comprises two components: a fresh issuance of shares worth Rs 162 crore by the company, aimed at debt repayment, meeting working capital needs, addressing general corporate requirements, and facilitating acquisitions. Additionally, there is an offer-for-sale (OFS) of Rs 189 crore by promoter Sat Industries.
Priced at a range of Rs 102-108 per share, the post-issue market capitalization is anticipated to reach Rs 1,400 crore at the upper price band.
Aeroflex Industries’ strong financial trajectory is noteworthy, as evidenced by substantial earnings growth over the years. The company’s profit demonstrates an impressive CAGR of 86 percent in FY20-23, reaching Rs 30.1 crore in FY23. Similarly, revenue showcases a commendable growth rate of 23.1 percent during the same period, culminating at Rs 269.5 crore in FY23.
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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