Aeroflex Industries IPO to Launch on Tuesday: GMP Insights
In an exciting development for investors and market enthusiasts, the highly anticipated initial public offering (IPO) of Aeroflex Industries is all set to kick off its subscription phase on August 22, running through August 24. Notably, the allocation process for anchor investors is scheduled to take place on the evening of the preceding Monday.
Preceding the commencement of the IPO subscription window, Aeroflex Industries has gained significant traction in the unlisted market, commanding a notable premium of Rs 60.
Adding to the pre-IPO fervor, distinguished investors including Ashish Kacholia and Jagdish Master have recently secured stakes in Aeroflex Industries. Worth noting, Aeroflex operates as a subsidiary under the umbrella of Sat Industries, a listed entity.
The core focus of Aeroflex Industries lies in exporting indigenous metallic flexible flow solutions, with its footprint spanning across 85 countries. Impressively, these exports constitute over 80% of the company’s overall revenue. These innovative solutions, designed and manufactured in India, effectively supplant conventional rubber and polymer pipes and tubes. The versatile nature of Aeroflex’s products positions them for utilization in a wide array of industries, encompassing firefighting, aviation, and even space applications.
The IPO, featuring an equity face value of Rs 2, is priced within the range of Rs 102 to Rs 108. The offering comprises a fresh equity infusion of Rs 160 crore alongside an offer-for-sale (OFS) component, wherein promotors and selling shareholders will potentially divest up to 17.5 million shares.
Distribution of the IPO subscription is thoughtfully planned, earmarking 50% for qualified institutional buyers, 15% for non-institutional investors, and allocating 35% to retail investors.
The capital garnered from the IPO will be strategically allocated, with Rs 35 crore earmarked for prepayment of outstanding secured borrowings. An additional sum of Rs 84 crore will be directed toward fueling the company’s working capital necessities. Moreover, a portion of the proceeds will facilitate general corporate endeavors and potentially fund acquisitions, fostering inorganic growth.
For the fiscal year culminating in March 2023, Aeroflex Industries has showcased impressive financial performance, boasting revenue from operations to the tune of Rs 269.4 crore, accompanied by a commendable profit of Rs 30.1 crore.
Guiding the IPO process as the sole book-running lead manager is Pantomath Capital, while Link Intime India is entrusted with the role of registrar for the offering. Anticipating a broader market presence, the equity shares of Aeroflex Industries are slated for listing on both the BSE and NSE exchanges.
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 caters to a global customer base.
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