Aeroflex Industries IPO Day 3: Issue subscribed 81.16 times so far

24 Aug 2023 , 03:22 PM

The final day of bidding on August 24^th witnessed continued strong interest in the initial public offering (IPO) of Aeroflex Industries, amounting to Rs 351 crore, as the issue achieved a remarkable oversubscription rate of 81.16 times.

Investors displayed keen enthusiasm by bidding for 188.4 crore equity shares against the offer size of 2.32 crore. The company seems to have secured a pioneering advantage in the flexible flow solutions sector, which contributed to its positive reception. 

High net-worth individuals demonstrated remarkable interest, subscribing at an impressive rate of 119.55 times their allotted portion, constituting 15% of the IPO. Qualified institutional buyers (QIBs), allocated 50% of the IPO quota, subscribed at a rate of 148.13 times their allocated share.

Retail investors also contributed significantly, subscribing at a rate of 30.56 times their designated portion. Additionally, 5 lakh shares were allotted to shareholders of Sat Industries, the promoter of Aeroflex, resulting in a subscription rate of 26.56 times.

This IPO, which commenced on August 22^nd, consists of a fresh issue of Rs 162 crore alongside an offer-for-sale (OFS) worth Rs 189 crore by promoter Sat Industries. The offering gained momentum on the second day of bidding, achieving a subscription rate of 21.1 times.

The raised funds from the fresh issue will be allocated towards repaying a debt of Rs 32 crore and fulfilling working capital requirements amounting to Rs 84 crore. The remaining funds will serve general corporate purposes and potential inorganic acquisitions.