Ashish Kacholia-backed Aeroflex Industries gets Sebi nod for Rs 350 cr IPO

economictimes.indiatimes.com:

Aeroflex Industries has received approval from the market regulator for its Rs 350 crore Initial Public Offering (IPO). The company has secured a final observation from the Securities and Exchange Board of India (Sebi), which equates to approval. Aeroflex filed its preliminary IPO papers with the regulator in March of this year.

Prior to the IPO, prominent investors, including Ashish Kacholia and Jagdish Master, acquired stakes in the company. Other investors who have taken a slice of the company include Vikas Khemani, Rosy Blue India, VPK Global Ventures Fund, Samedh Trinity Partners, Shyam Agarwal, Mitul Prafulbhai Mehta, and Rajnik Savaliya. Aeroflex is a subsidiary of the listed company, Sat Industries.

The company exports Make-in-India metallic flexible flow solutions to over 85 countries, with exports accounting for more than 80% of its total revenue. Aeroflex's metallic flexible flow solutions, which replace rubber and polymer pipes and tubes, have a multi-purpose application. They cater to a variety of industry segments, including fire-fighting, aviation, and space.

For the past two years, Aeroflex has a track record of dividend distribution and has a well-defined dividend policy of distributing within a range of 7-15%, as disclosed in the offer document. The IPO, with a face value of Rs 2 per equity share, comprises a fresh issue of equity shares worth up to Rs 160 crore, and an offer-for-sale (OFS) of up to 17.5 million equity shares by the promoter selling shareholders. In consultation with the book running lead manager, the company may offer a discount to the eligible shareholders of its promoter, Sat Industries.