Aeroflex Industries IPO bidding started from August 22, 2023 and ended on August 24, 2023. The allotment for Aeroflex Industries IPO was finalized on Tuesday, August 29, 2023. The shares got listed on BSE, NSE on August 31, 2023.
Aeroflex Industries IPO is a book built issue of Rs 351.00 crores. The issue is a combination of fresh issue of 1.5 crore shares aggregating to Rs 162.00 crores and offer for sale of 1.75 crore shares aggregating to Rs 189.00 crores.
Aeroflex Industries IPO price band is set at ₹102 to ₹108 per share. The minimum lot size for an application is 130 Shares. The minimum amount of investment required by retail investors is ₹14,040. The minimum lot size investment for sNII is 15 lots (1,950 shares), amounting to ₹210,600, and for bNII, it is 72 lots (9,360 shares), amounting to ₹1,010,880
OBJECTIVE OF IPO
The proceeds will be used for:
AEROFLEX INDUSTRIES IPO Details |
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IPO Date | August 22, 2023 to August 24, 2023 | ||||||||||
Listing Date | August 31, 2023 | ||||||||||
Face Value | 2 | ||||||||||
Price | ₹102 to ₹108 per share | ||||||||||
Lot Size | 130 Shares | ||||||||||
Total Issue Size | 351 | ||||||||||
Fresh Issue | 15,000,000 shares (aggregating up to ₹162.00 Cr) | ||||||||||
Offer for Sale | 17,500,000 shares of ₹2 (aggregating up to ₹189.00 Cr) | ||||||||||
Issue Type | Book Built Issue IPO | ||||||||||
Listing At | NSE, BSE | ||||||||||
Share holding pre issue | 114,320,370 | ||||||||||
Share holding post issue | 129,320,370 |
AEROFLEX INDUSTRIES IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 130 | ₹14,040 | ||||||||
Retail (Max) | 14 | 1820 | ₹196,56 | ||||||||
S-HNI (Min) | 15 | 1,950 | ₹210,600 | ||||||||
S-HNI (Max) | 71 | 9,230 | ₹996,840 | ||||||||
B-HNI (Min) | 72 | 9,360 | ₹1,010,880 |
AEROFLEX INDUSTRIES IPO Timeline (Tentative Schedule) |
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IPO Open Date | Tuesday, August 22, 2023 | ||||||||||
IPO Close Date | Thursday, August 24, 2023 | ||||||||||
Basis of Allotment | Tuesday, August 29, 2023 | ||||||||||
Initiation of Refunds | Wednesday, August 30, 2023 | ||||||||||
Credit of Shares to Demat | Thursday, August 31, 2023 | ||||||||||
Listing Date | Thursday, August 31, 2023 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on August 24, 2023 |
AEROFLEX INDUSTRIES IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | 9,599,980 (29.25%) | N/A | |||||||||
QIB Shares Offered | 6,276,490 (19.13%) | N/A | |||||||||
NII (HNI) Shares Offered | 4,932,353 (15.03%) | ||||||||||
bNII > ₹10L | 3,288,236 (10.02%) | 1,686 | |||||||||
sNII < ₹10L | 1,644,117 (5.01%) | 843 | |||||||||
Retail Shares Offered | 11,508,824 (35.07%) | 88,529 | |||||||||
Other Shares Offered | 500,000 (1.52%) | NA | |||||||||
Total Shares Offered | 32,817,647 (100%) |
AEROFLEX INDUSTRIES IPO Promoter Holding |
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Share Holding Pre Issue | 91% | ||||||||||
Share Holding Post Issue | 66.99% |
AEROFLEX INDUSTRIES IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
Company is a manufacturer and supplier of environment friendly metallic flexible flow solution products made of Stainless steel and bronze catering to global as well as domestic markets. It supplies its products to a wide spectrum of industries for controlled flow of all forms of substances including air, liquid and solid. Company exports its products to more than 80 countries which holds about 80% of its total sales. These countries include Europe, USA and others. The company intend to set up warehouses, distribution centres and business development offices in USA, Europe, Far East region and MENA region.
Product categories include:
Having 1700 SKUs as on 31st Jan’23
Globally, the market for SS flexible hose was estimated to value at approximately USD 25 Bn in 2020 with the size of SS corrugated hose estimated at USD 12.5 Bn which is slated to grow to USD 38 Bn and USD 18 Bn by 2027, registering a CAGR of 7.5% and 6.3%, respectively. Favorable product features drive demand for SS flexible hoses. Urbanization boosts infrastructure and HVAC needs, while industrialization spurs demand for SS corrugated hoses.
The IIP index showed fluctuations this year. It dropped in October 2022, rebounded to 7.3%, then fell to 4.3% YoY growth in Dec 2022. Manufacturing (77.6% weight) grew 2.6%, mining 9.8%, and electricity 10.4%. December's YoY growth was higher due to a low base from the pandemic's third wave. Low base effect and festive sales may boost IIP, but external demand drop could affect manufacturing and overall growth. Government to invest ₹700 Bn (USD 9.97 Bn) for nationwide gas pipeline expansion. Aim to raise natural gas share from 6% (2019) to 15% by 2030.
In the 2023-24 Union Budget, the Ministry of Petroleum and Natural Gas received Rs 410 billion compared to Rs 339 billion in the previous year. With a thriving PNG and CNG sector, the CGD network's growth is projected to drive demand for Stainless Steel Corrugation Flexible Flow Solutions. Flexible Flow Solutions made with Stainless Steel Corrugation manufacturing landscape is fragmented, with numerous small and medium size players operating alongside few large players. However, there exists a technical barrier that clearly demarcates large established players from the smaller peers.
Short-term demand for Stainless Steel Corrugation Flexible Flow Solutions comes from process industries and HVAC systems due to capacity expansion and modernization. Stable demand from these sectors will persist. Long-term growth will be fueled by new applications like energy storage, semiconductors, and aviation. Recent steel industry expansions have boosted demand. Manufacturing sector projects further support demand. Transition from traditional hoses also accelerates growth.
RISK FACTORS FOR THE ISSUE
Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
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Reserve of Surplus | - | - | - |
Total Assets | 213.98 | 183.44 | 161.64 |
Total Borrowings | 45.01 | 39.13 | 53.07 |
Fixed Assets | 56.1 | 52.12 | 43 |
Cash | 6.2 | 8.3 | 3.5 |
Net Borrowing | 38.81 | 30.83 | 49.57 |
Revenue | 269.48 | 240.99 | 144.84 |
EBITDA | - | 46.6 | 22.3 |
PAT | 30.15 | 27.51 | 6.01 |
EPS | 2.64 | 2.41 | 0.53 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 2.64 | ||||||||||
EPS Post IPO (Rs.) | - | ||||||||||
P/E Pre IPO | 40.91 | ||||||||||
P/E Post IPO | - | ||||||||||
ROE | 26.43% | ||||||||||
ROCE | 31.91% | ||||||||||
P/BV | - | ||||||||||
Debt/Equity | 0.39 | ||||||||||
RoNW | 31.91% |
AEROFLEX INDUSTRIES Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
No listed peer |
Aeroflex Industries Limited
Plot No. 41, 42/13, 42/14 & 42/18,
near Taloja MIDC, Village Chal, Behind IGPL,
Panvel, Navi Mumbai - 410 208
Phone: +91 22 61467100
Email: corporate@aeroflexindia.com
Website: https://www.aeroflexindia.com/
Link Intime India Pvt. Ltd.
Address: C - 101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West, Mumbai 400 083, Maharashtra, India
Phone: +91-22-4918 6270
Email: aeroflexindustries.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Aeroflex Industries Ltd. (AIL) manufactures eco-friendly metallic flexible flow products for global and domestic markets, experiencing steady growth in recent years. With a turnover increasing from Rs. 144.84 cr. (FY21) to Rs. 269.48 cr. (FY23), AIL has served 723 customers in FY23. It paid a consistent dividend of 10% for FY22 and FY23, with an average EPS of Rs. 2.21 and RoNW of 25.56% over three fiscals. The IPO is priced at P/BV of 10.82 based on NAV of Rs. 9.98 and P/BV of 5.06 post-IPO. With a strong pre-IPO placement history, AIL aims for medium to long-term rewards.
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