The initial public offering (IPO) of Mumbai-based Aeroflex Industries Ltd, a global manufacturer of eco-friendly metal flexible flow solution products, will open registration on Tuesday, August 22, 2023, and end on Thursday, August 24, 2023.
Price range, IPO size, GMP, and other important details
The company has set the price range for the initial public offering at Rs 102 to Rs 108 per share. Investors can bid a minimum of 130 equity shares and then multiples of 130.
The public offering, with a nominal value of Rs 2 per share, consists of a new share issue of Rs 162 crore and an offer to sell (OFS) of up to 17.5 million shares. Through the IPO, the company aims to raise Rs 351 crore. During the pre-IPO, promoters sold 8.69 million shares, or 7.6% shares, raising Rs 76.14 crore from institutional investors including prominent names like Ashish Kacholia, Bengal Finance and Investment Private Limited, etc.
In addition, the company raised Rs 103.68 crore from fixed investors before opening the IPO.
According to topsharebrokers.com, the company's unlisted shares are trading at a premium of Rs 58, marking a premium of 53.70% against the IPO issue price.
The IPO is scheduled to go public on September 1, 2023.
Broker Reviews
Some brokerages have assigned an "underwriting" rating to IPOs before listing, underscoring the long-term potential. SBI Securities, AUM Capital, Profitmart, and Reliance Securities are some of the brokerage firms that have "underwriting" ratings for IPOs.
SBI Securities highlights the company's solid customer base, manufacturing, testing, and quality assurance facilities, and a strong focus on R&D as key strengths, while the key risks raised are import duties, importing raw materials from China, depending on a single production unit, and abundant labor. capital needs.
“At CMP, the company is valued at a PE ratio of 46.3x based on FY23 earnings at a higher price per equity post-issue. The company has no listed partner in India. The company has a unique business model in the field of Flexible Flow solutions. With a decent yield and rate of return, the risk-reward ratio for long-term investors looks favorable. Investors can apply for an IPO from a long-term investment perspective,” SBI Securities said in its IPO note.
AUM Capital said the company has "shown impressive financial growth and established strong client relationships, holding a dominant position in the Indian market."
“With the backing of seasoned promoters, renowned HNI investors, and a forward-looking strategy, AIL is perfectly positioned to achieve lasting success in the flexible flow solutions industry. activities are developing. We recommend REGISTER for the long term,” added AUM Capital in its IPO note. Profitmart said: “We are positive about AIL in the long term as the global and Indian flexible flow solutions market offers a big growth path over the next 3-5 years. More importantly, the company benefits from well-known clients, which strengthens the company's position and will help it grow its operations in the future. »
"We are confident that Aeroflex Industries Limited will deliver solid performance and provide excellent investment opportunities for investors with a long-term perspective."
