AEROFLEX INDUSTRIES IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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:

  • Offer for Sale
  • Fresh Issue
    • Full or part repayment and/or prepayment of certain outstanding secured borrowings (including foreclosure charges, if any).
    • Funding working capital requirements.
    • General corporate purposes
    • Unidentified Inorganic Acquisitions.

AEROFLEX INDUSTRIES IPO Details

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

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)

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

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

Share Holding Pre Issue 91%
Share Holding Post Issue 66.99%

AEROFLEX INDUSTRIES IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About AEROFLEX INDUSTRIES Limited

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:

  • Braided Hoses
  • Unbraided Hoses
  • Solar Hoses
  • Gas Hoses
  • Vacuum Hoses
  • Braiding
  • Interlock Hoses
  • Hose Assemblies
  • Lancing Hose Assemblies
  • Jacketed Hose Assemblies
  • Exhaust Connectors
  • Exhaust Gas Recirculation (EGR)
  • Expansion Bellows
  • Compensators
  • Related End Fittings

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

  • Aeroflex exports contribute over 80% of the revenue, out of which the U.S. constituted 28% for FY23 and then top 5 countries holds 50% of the sales. This results in exposure of risk due to currency rate changes and many import duties and other obligations of other countries.
  • The company doesn't sign long-term contracts with raw material suppliers or the long-term customers and is dependent on China for a significant portion of raw material supplies. Aeroflex is dependent and will continue to depend on one manufacturing facility in Navi Mumbai, with a total installed capacity of 11 million metres. Capacity utilization in the facility was 83% for FY23.
  • The company needs to update various licenses on a regular basis, not fulfilling any such obligation might affect the business.

AEROFLEX INDUSTRIES Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 31 Mar 2023 31 Mar 2022 31 Mar 2021
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

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

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
No listed peer
AEROFLEX INDUSTRIES Limited Contact Details

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
Websitehttps://www.aeroflexindia.com/

AEROFLEX INDUSTRIES IPO Registrar and Lead Manager(s)

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
Websitehttps://linkintime.co.in/initial_offer/public-issues.html

AEROFLEX INDUSTRIES IPO Review

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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