Aeroflex Industries Ltd, a subsidiary of Sat Industries Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise about ₹350 crore through an Initial Public Offering (IPO).
The company is a global manufacturer of Metallic Flexible Flow Solution products with its headquarters in Mumbai. More than 80 countries, including Europe, the United States and others are clients of the company's exports, which account for more than 80% of its revenue.
A fresh issue of equity shares up to the value of ₹160 crore and an offer-for-sale (OFS) of up to 17.5 million equity shares by the promoters selling shareholders and promoter group make up the offer, which has a face value of ₹2 per equity share.
The company may offer a discount to the eligible shareholders of its promoter, Sat Industries Ltd, which is already listed on the bourses, in consultation with the book running lead manager (BRLM).
As per the DRHP, the proceeds from the fresh issue will be utilised to the extent of ₹35 crore for the prepayment of outstanding secured borrowings availed by the company, ₹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.
The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers. The shareholders of Sat Industries Ltd may receive up to 10% of the offer.
Pantomath Capital Advisors Private Ltd is the sole BRLM and Link Intime India Private Ltd is the registrar to the offer. The shares of the company are proposed to be listed on the BSE and NSE.
According to the DRHP, for fiscal 2022, Aeroflex generated consolidated revenue from operations of ₹240.8 crore. The company had earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹46.7 crore and EBITDA margin of 19.4%. The company’s profit after tax for fiscal 2022 was ₹27.5 crore with profit after taxes (PAT) margin of 11.4%.
