Aeroflex IPO: Aeroflex Industries Ltd on Thursday, August 31, made its stock market debut, with its shares opening at Rs 197.4 on the BSE, which is about 82.78 per cent higher than the issue price of Rs 108 per share.
Prashanth Tapse, research analyst, senior vice-president (research) of Mehta Equities, said, “Considering robust demand response by investors in all categories, investors were eagerly waiting for the Ashish Kacholia-backed Aeroflex Industries listing. Despite expensive valuations at the higher end, the offer got stellar demand for its unique eco-friendly product which is said to be an alternative to rubber-based hoses and business demand for both international and domestic markets which justifies the premium listing.”
He added that after the strong debut of Aeroflex Industries, we see valuation would be stretched and investors should look to booking profits. “Hence, we recommend allotted investors to book profits on the listing day and those who look to buy on the listing day should wait and watch before buying at debut price.”
The Rs 351-crore IPO took place last week and ended with an overwhelming response with 97.07 times subscription.
Aeroflex IPO received more than 27 lakh applications, which is the highest number of applications received across IPOs in 2023, the company said in a statement.
It said Aeroflex Industries and its corporate promoter, Sat Industries Ltd, together raised Rs 427 crore (about $52 million) through pre-IPO and IPO of Aeroflex. About Rs 76 crore were raised in pre-IPO round and Rs 351 crore were raised through IPO.
Aeroflex launched its IPO of Rs 351 crore (at upper price band) on August 22, 2023, which closed on Thursday, August 24, 2023.
The price band for the IPO was determined at Rs 102-Rs 108 per equity share. The offer was made through the book-building process, wherein 1.54 per cent of the total issue size was reserved with the holding company’s eligible shareholders.
Out of the total, 50 per cent of the offer was available for allocation to qualified institutional buyers, 15 per cent of the offer for non-institutional investors and 35 per cent for retail individual investors. The finalisation of allotment took place on August 29, 2023, while refunds will be initiated on August 30, 2023.
The shares will be credited to the demat accounts of eligible investors on August 30, 2023. The company’s share listing is expected to take place on August 31, 2023, on BSE and NSE.
Aeroflex is a manufacturer of environment-friendly metallic flexible flow solution products, catering to global markets. The company exports products to more than 80 countries in Europe and North America, among others.
Aeroflex has grown at more than 37 per cent revenue CAGR in the last three years, operating at more than 4.85 times asset turnover, clocking more than 20 per cent EBITA margins and generating about 32 per cent ROCE (return on capital employed).