The initial public offering (IPO) of Aeroflex Industries Ltd continued to gather strong investor response on the third and last day (Day 3) of bidding. At 11:12 am on Thursday, the issue was booked 27.25 times. Aeroflex’s IPO received 63,26,68,530 bids compared to the issue size of 2,32,17,667 shares, BSE data showed. The category reserved for non-institutional investors (NIIs) was booked 64.16 times and retail individual investors (RIIs) saw 22.36 times of the total bids. The quota for reservation portion shareholder was booked 14.57 times and the portion kept for qualified institutional buyers (QIBs) was subscribed 8.22 times.
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The Rs 351 crore-IPO, which opened for subscription on Tuesday, would conclude on August 24. The IPO price band has been fixed at Rs 102-108 per equity share. Investors can bid for a minimum of 130 equity shares and in multiples of 130 equity shares thereafter.
Grey market premium (GMP)
In the grey market, Aeroflex shares were last seen trading at a premium of nearly 67 per cent against its issue price of Rs 108 (upper price band). The stock is likely to get listed on September 1, 2023.
Brokerage view
A majority of brokerages are positive on the issue. “With high entry barriers and with investing in new technologies which has helped the company to improve its products, we believe that the company has a potential to grow in the long term and thus we assign a ‘Subscribe’ rating for the issue,” Choice Broking said.
“The company has a ‘Make in India’ model with no listed peers with advanced manufacturing facilities and R&D infrastructure. We believe that issue is fairly priced and recommend ‘Subscribe-long term’ rating to the IPO,” Anand Rathi Shares & Stock Brokers stated.
SBI Securities and AUM Capital also gave ‘Subscribe for long-term’ ratings.
Ahead of its IPO, the Mumbai-based company said it has garnered Rs 103.68 crore from anchor investors.
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Aeroflex informed the bourses that it allocated 95,99,980 shares at Rs 108 apiece to anchor investors.
“Anchor book of Aeroflex comprises 10 investors including mutual funds, large insurance, NBFC treasuries, AIFs and foreign portfolio institution. The institutions who participated in the anchor are Nippon Mutual Fund, Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund, Winro Commercial India, Universal Sampo General Insurance, Quantum State Investment Fund, Negen Undiscovered Value Fund and Societe Generale,” the company stated.
Out of the total anchor book, 55 per cent allocation was made to four domestic mutual funds through a total of 9 schemes amounting to Rs 57 crore, Aeroflex said. Nippon Mutual Fund took single largest allocation, around 20 per cent of the total anchor book size, whereas other funds like Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund, Winro Commercial and Societe Generale followed the pack, it added.
Before this, marquee investors such as Ashish Kacholia, Jagdish Master, Vikas Khemani-led Carnelian Fund and others picked up around 7 per cent stake in Aeroflex’s pre-IPO round.
Pantomath Capital Advisors is the sole manager to the issue, while Link Intime India has been appointed as the registrar.
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Aeroflex Industries, formerly known as Suyog Intermediates, is a manufacturer of environment-friendly Metallic Flexible Flow Solution products, catering to global markets. The company has grown at over 37 per cent revenue CAGR in last 3 years, clocking 20 per cent EBITA margins and generating approximately 32 per cent ROCE. Its manufacturing facility is located at Taloja, Navi Mumbai, Maharashtra.
