Aeroflex Industries made a stellar debut on the bourses today, August 31, 2023. The stock listed at ₹190 on the NSE, a 75.9 percent premium to the issue price of ₹108. Meanwhile, on the BSE, it listed at ₹197.40, almost 83 percent premium.
The ₹351 crore initial public offering of Aeroflex Industries was open for subscription between August 22 and August 24 at a price band of ₹102-108 per share. The company doesn’t have any listed peers in India.
The IPO comprised fresh issuance of shares worth ₹162 crore and an offer-for-sale (OFS) of 1.75 crore shares worth ₹189 crore by promoter entity Sat Industries.
The fresh issue proceeds, excluding offer expenses, will be used for repaying certain borrowings, and for working capital requirements, with the remaining for general corporate purposes and acquisitions.
The IPO was subscribed to a massive 97.11 times. The portion for qualified institutional bidders was booked a whopping 194.73 times, while the non-institutional investors' category was subscribed to an astounding 126.13 times. Retail investors were nowhere behind in bidding as their quota was subscribed to 34.41 times.
Aeroflex Industries is a manufacturer and supplier of environmentally friendly metallic flexible flow solution products. They cater to both global and domestic markets, exporting their products to over 80 countries, including Europe and the USA. The company’s product portfolio comprises Stainless Steel Corrugated Flexible Hoses (with and without braiding), SS Braiding, Interlock Hoses and Assemblies catering to a diverse range of end-user industries for the controlled flow of all forms of substances, including air, liquid, and solid.
The company's revenue from operations posted a CAGR of 36.43 percent in FY21-FY23 to ₹269.5 crore in the year ended March FY23 while profit recorded a CAGR of 124 percent in the same period to ₹30.15 crore. The EBITDA margin also expanded to 20.05 percent in FY23, from 19.39 percent in FY22 and 15.43 percent in FY21.
Most analysts had a ‘subscribe’ rating for the issue on the back of its dominant market share in the business, strong clientele, healthy financial performance, and decent return ratios.