Ashish Kacholia-backed Aeroflex Industries IPO to open Tuesday. What GMP signals ahead of subscription?
IPO) of Aeroflex Industries will open for subscription on August 22 and continue till August 24. The allocation to anchor investors will be done on Monday evening. Ahead of the issue opening, Aeroflex Industries is commanding a premium of Rs 60 in the unlisted market.
Just days before the IPO, ace investors, including Ashish Kacholia, Jagdish Master, have picked up stakes in the company. Aeroflex is a subsidiary of Sat Industries, which is a listed company. The company exports make-in-India metallic flexible flow solutions to more than 85 countries, exports accounting for more than 80% of the total revenues.
The company’s metallic flexible flow solutions replace rubber and polymer pipes and tubes, and its products have multi-purpose usage, catering to numerous industry segments including fire-fighting, aviation and space. The IPO, with a face value of Rs 2 per equity, is priced in the range of Rs 102-108. The issue consists of a fresh equity of Rs 160 crore and an offer-for-sale (OFS) of up to 17.5 million shares by promoters selling shareholders.
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 35% is set aside for retail investors. 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 a certain 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
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