Aeroflex Industries sets price band of Rs 102-108 for its IPO

economictimes.indiatimes.com:

The company, which is backed by marquee investors Ashish Kacholia and others, plans to raise Rs 351 crore at the upper price band. The allocation to anchor investors will be done on August 21. The IPO comprises a fresh equity issue of Rs 162 crore and an offer for sale (OFS) of 1.75 crore equity shares.

Under the OFS, promoter SAT Industries will offload the said stake. According to market sources, the company's shares are trading with a premium of Rs 35 in the unlisted market. Aeroflex Industries exports Make in India metallic flexible flow solutions to more than 85 countries, as exports account for more than 80% of the total revenues.

Its metallic flexible flow solutions replace rubber and polymer pipes and tubes and its products have multi-purpose use, catering to numerous industry segments including fire-fighting, aviation, and space among others. Aeroflex has a track record of dividend distribution for the last two years and has a clearly defined dividend policy of distributing within the range of 7-15% dividend, as per disclosures in the offer document. 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 is the sole book-running lead manager to the IPO and Link Intime India is the registrar of the offer. The company’s equity shares are proposed to be listed on the BSE and NSE.