Aeroflex Industries Limited | IPO Details

Company Introduction:

Manufacturer of a multipurpose application of metallic flexible flow solutions, the company is fast scaling new highs year on year and here are the reasons behind that you should not miss to read it.

Aeroflex Industries Limited has recorded the total revenue, a new high every year, for instance, in FY 2023 the company has recorded a total revenue of INR 2964.78 Lakhs, and in FY2022 it noted a total revenue of INR 2409.92.

The company displayed an interesting figure of 1,700 product Stock Keeping Units in its product portfolio as on March 31, 2023. Attaining such a good performance was the result of the adoption of an environment friendly metallic flexible flow solution products in manufacturing and supplying those to their esteemed clients.

Another noticeable fact is that the metallic flexible flow solutions produce a multipurpose application and over time are replacing the conventional rubber, polymer pipers and tubes.

Based on this advantage, the company is rapidly advancing in its business operations and the yearly measure of progress can be evaluated in the consolidated financials for the past four years. However,the company wants to expand its capital base through public funding as a part of the expansion phase of the company.

The following paragraphs deal with various segments that signify the need to buy the shares in the IPO primary share markets. It does include the strengths of Aeroflex, Objects of the IPO fund, IPO details, IPO event calendar, consolidation of five year financials and key performance indicators.

Strengths of Aeroflex:

Aeroflex Industries Limited holds a good track record on exports of the  metallic flexible flow solutions under “Make in India”. The company exports the Aeroflex products to over 85 countries that generates a revenue of more than 80 percent of the total value.

The Aeroflex solutions have made their presence in different areas of operations such as space, aviation, and fire-fighting equipment. These metallic flexible flow solutions have recorded multipurpose applications and their utility does replace the utilisation of rubber, and polymer pipes and tubes.

Employees are benefited with a dividend distribution of about 7 to 15 percent as per the information in the offer document and it has become a custom for the past two years.

Objects of IPO Fund Utilisation:

As per the Red Herring Prospectus Document, RHPD, a little portion of the capital fund will be utilised to make a prepayment of INR 35 crores of the outstanding in regard to the borrowings.

A significant portion of the IPO fund shall be invested on working capital needs up to INR 84 crore.

A part of the fund will be utilised to manage and maintain the general corporate purposes, & acquisitions.

 Aeroflex IPO Details:

The promoters of Aeroflex Metallic Flexible flow solutions Ashish Kacholia, and Jagdish Master filed an IPO application to the SEBI regulatory authorities for the approval of the IPO in the month of March 2023.

SEBI regulatory authority gave approval to float an IPO issue worth INR 350 crore of which the fresh issue will be equity shares worth INR 160 crores and the Offer for Sale will be 17.5 million equity shares.

The IPO issue will comprise fresh issue and offer for sale, OFS, with each share possessing a face value of INR 2.00.

The company reserves an IPO issue quota for the various segments like retailer, QIB, and NII(HNI) in the following manner.

The share offers to the retailers shall be limited to 35 percent of the net offer, for the NII ( HNI), the share offers will be over and above 15 percent of the net offer. Likewise, the shares offered to the QIB segment will be equal to or below 50 percent of the net offer.

The price bandwidth of the share price is between INR 102 and INR 108 and the lot size will be 130 shares.

A retailer is allowed to purchase a minimum of a single lot equating to 130 shares and the amount aggregating up to INR 14,040 and the maximum lots of 14 aggregating to INR 196,560.

For S-HNI minimum lot will be 15 aggregating to INR 210,600 and a maximum lot of 71 aggregating to INR 996,840 and B-HNI minimum will be allowed to purchase a single lot size of 72 that equates to 9,360 aggregating to INR 1,010,880.

The total issue of the shares will be 32,500,000 which aggregates to INR 351.00 Cr, fresh issue 15,000,000 shares aggregating to INR 162.00, offer for sale shares will be 17,500,000 aggregating to INR 189.00 Cr.

In the pre issue period, the promoters will be holding 114,320,370 shares and after the IPO issue listing, the shares will rise to a figure of 129,320,370.

IPO Timetable:

The company shall open its IPO issue to the general public on Tuesday 22 August 2023, and the closing date will be Thursday, 24 August 2023.

The allotment of the shares to the applicants shall begin on Tuesday, 29 August 2023.

An applicant may not be able to seek an allotment due to oversubscription then the National Stock Exchange, NSE, or the Bombay Stock Exchange will initiate to refund the collected funds from Wednesday, 30 August 2023 onwards.

After the share allotment, they shall be credited to the applicant’s demat account on Thursday. 31 August 2023. And, on Friday, 01 September 2023, the stock exchange shall list the issue company’s IPO.

Key Performance Indicator:

The IPO prospectus book does mention the parameters that act to be performance indicators which enable an applicant to decide whether one can opt for IPO issue or not. They are Market Capital ( INR 1396.66 Cr), ROE(26.43%), ROCE(31.91%), and Debt/Equity(0.39).

Consolidated Financials for 4 years (2020 to 2023)

About Aeroflex Industries Limited

Location/Infrastructure

Began in 1994, Suyog Intermediaries Private Limited renamed as Aeroflex Industries Limited later. The company is located at Taloja, Navi Mumbai, Maharashtra, and holds a premises of 3,59,528 square feet.

Product Profile:

The company does manufacture a host of products like solar hoses, vacuum hoses, interlock hoses, braided hoses, unbraided hoses, and gas hoses. Other manufactured products are hose assemblies, lancing hoses assemblies, jacketed hose assemblies, exhaust connectors,exhaust gas recirculation (EGR) tubes, expansion bellows, compensators, and related end fittings.

Clientele Spread in Business:

The company serves clients belonging to different segments such as distributors, Maintenance Repair and Operations Companies (MROs), Original Equipment Manufacturers (OEMs), fabricators, and to those companies which operate in a wide range of industries.