Aeroflex Industries to raise Rs 350 crore via IPO; take a quick look

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Aeroflex Industries IPO will comprise a fresh issue of equity shares worth Rs 160 crore and an offer for sale (OFS) of up to Rs 190 crore from its existing shareholders and promoters. Founders of the company, as per the firm, will issue 1.75 crore shares in the offer.

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Aeroflex Industries Ltd, a Mumbai-based manufacturer of Metallic Flexible Flow Solutions products, recently filed a draft red herring prospectus (DRHP) with the market regulator Sebi to raise around Rs 350 crore through an initial public offering (IPO).

The company is a subsidiary of Sat Industries, which is a listed company.
 
The proposed IPO will comprise a fresh issue of equity shares worth Rs 160 crore and an offer for sale (OFS) of up to Rs 190 crore from its existing shareholders and promoters. Founders of the company, as per the firm, will issue 1.75 crore shares in the offer.

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The IPO will be done via the book-building process. In this process, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.

The company has informed that up to 50 per cent of the offer will be reserved for Qualified Institutional Buyers (QIBs) while not less than 15 per cent will be allocated to non-institutional investors. Further, retail investors’ quota stands at not less than 35 per cent of the offer and up to 10 per cent of the offer will be reserved for the shareholders of Sat Industries.

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Aeroflex is known for manufacturing environmental-friendly metal flexible flow solution products that serve domestic and international markets. Currently, its products are exported to over 80 countries, including the United States and Europe.

Proceeds from this IPO will be utilised to the extent of Rs 35 crore for the payment of the debt, Rs 84 crore for funding its working capital requirements, and a portion of the amount will be used for general corporate purposes and acquisitions for inorganic growth.

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For the fiscal year 2022, Aeroflex had a consolidated revenue from operations of Rs 240.8 crore, and its profit after tax (PAT) stood at Rs 27.5 crore.