Bumper Debut! Aeroflex Industries shares list at 83% premium over IPO price

After a bumper response to the IPO, shares of Aeroflex Industries debuted at a strong premium of 82.8% at Rs 197.4 on BSE in Thursday’s trade over the IPO price of Rs 108. On NSE, the stock listed at Rs 190, up 76% over the issue price.

Ahead of the listing, the shares commanded a premium of Rs 65 in the unlisted market.

The IPO of Aeroflex Industries saw a robust response, driven by healthy demand across categories. The issue was subscribed 97 times overall at close.

The qualified institutional buyer category was the most subscribed at 194.7 times, followed by the non-institutional investors’ portion with 126.10 times bids. The reservation shareholders’ portion was subscribed 28.51 times, whereas the retail part was subscribed 34.35 times.

Aeroflex Industries is a market leader in metallic flexible flow solutions, offering a comprehensive range of products including corrugated stainless steel hoses and interlock flexible metal hoses.

Just days before the IPO, ace investors, including Ashish Kacholia and Jagdish Master had picked up stakes in the company. Aeroflex is a subsidiary of Sat Industries which is also a listed company.

The company exports Make-in-India metallic flexible flow solutions to more than 85 countries, as exports account for more than 80% of the total revenues.It has grown at more than 37% revenue CAGR in the last three years, operating at more than 4.85 times asset turnover, over 20% EBITA margins and generating approximately 32% ROCE.

The proceeds from the issue will be utilised to the extent of Rs 35 crore for the prepayment of outstanding secured borrowings availed by the company, Rs 84 crore for funding its working capital requirements, and certain of the amount will be used for general corporate purposes and acquisitions for inorganic growth.

For the financial year ending March 2023, the company has clocked revenue from operations of Rs 269.4 crore and a profit of Rs 30.1 crore.

Pantomath Capital was the sole book running lead manager to the IPO and Link Intime India acted as the registrar.

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