Aeroflex Industries IPO: Issue subscribed fully in one hour

22 Aug 2023 , 12:01 PM

Within the span of just an hour, enthusiastic retail investors swiftly subscribed to the public offering presented by Aeroflex Industries, a distinguished manufacturer of hoses serving multiple sectors. Click here to subscribe the IPO.

By 11:56 am, the overall subscription rate reached 1.88 times, as indicated by comprehensive data available on the BSE. The applications received tallied up to 4,37,31,740 shares against the available 2,32,17,667 shares. Retail investors demonstrated a subscription rate of 2.46 times, followed by 3.04 times for non-institutional investors and 0.82 times for the reserved shareholder quota. 

As customary, qualified institutional buyers remained observant on the initial bidding day.

The Mumbai-based company aims to raise Rs 351 crore through this IPO, at the upper limit of the price range. The IPO incorporates a fresh issuance of shares valued at Rs 162 crore, coupled with an offer-for-sale (OFS) of 1.75 crore shares by the promoter entity SAT Industries.

Backed by prominent investors like Ashish Kacholia and others, Aeroflex seeks to acquire Rs 351 crore at the upper price range of Rs 108. In anticipation of the offering, the company secured Rs 104 crore from anchor investors.

The diverse assembly of anchor investors for Aeroflex encompasses ten entities, including mutual funds, major insurance and NBFC treasuries, AIFs, and a foreign portfolio institution.

Aeroflex has showcased robust financial performance over recent years, with a Compound Annual Growth Rate (CAGR) of 36.43% in FY21-FY23 for revenue from operations, resulting in Rs 269.5 crore for the fiscal year ending in March FY23. Profits also achieved a CAGR of 124% over the same duration, culminating in Rs 30.15 crore, while EBITDA surged with a CAGR of 55.54%, reaching Rs 54.03 crore. The EBITDA margin experienced expansion, reaching 20.05% in FY23, up from 19.39% in FY22, and substantially surpassing the 15.43% recorded in FY21.