Initial Public Offering of Mumbai based Aeroflex Industries Limited (‘Aeroflex” or “the Company”) is a manufacturer of environment friendly Metallic Flexible Flow Solution products, catering to global markets. Aeroflex exports its products to more than 80 countries including Europe, USA and others, generating more than 80% of its revenue from exports 21.10 times on the second day of bidding.
The issue received bids of 48,98,46,370 shares against the offered 2,32,17,667 equity shares, at a price band of ₹102-108, according to the data available on the stock exchanges.
Non-Institutional Investors Portion was the most subscribed with 46.42 times, followed by Retail Portion with 17.78 times. Reservation Shareholders Portion was subscribed 11.46 times, whereas Qualified Institutional Buyer Portion was subscribed 8.05 times. The issue kicked off for subscription on Tuesday, August 22, 2023 and will close on Thursday, August 24, 2023.
A day prior to the opening of the issue, Aeroflex Industries Ltd had raised Rs 104 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Nippon Life, Invesco, Winro Commercial India, Whiteoak Capital Mutual Fund, Bank of India Mutual Fund, Quatum State Investment Fund, Societe Generale, and Universal Sompo General Insurance Company.
Leading brokerage firms including SBI Securities, Anand Rathi, BP Equities (StoxBox) Reliance Securities, AUM Capital, Arihant Capital, Sushil Finance, and Swastika have rated Aeroflex as a "Subscribe," praising its dominant domestic market share in a niche segment, its export-oriented business plan, and its diverse clientele and product portfolio. Backed by seasoned promoters and prominent HNI investors, the company also enjoys high entry and exit barriers through stringent quality standards.
However, the broking houses noted that lack of long-term contracts with its clients, a key risk variable to monitor going forward.
Pantomath Capital Advisors Private Limited is the sole book-running lead manager. Company’s equity shares are proposed to be listed on the BSE and NSE.