Aeroflex Industries Ltd & its Promoter Raised INR 427 Crores through IPO & Pre-IPO
New Delhi August 30, 2023: Mumbai-based Aeroflex Industries Ltd (‘Aeroflex’ / ‘the Company’) and its corporate Promoter, Sat Industries Limited, together raised INR 426 Crores (approximately USD 52 Mn) through Pre-IPO and IPO of Aeroflex. INR 76 Crores were raised in the pre-IPO round and INR 351 Crores were raised through IPO.
IPO received an overwhelming response in all categories to the degree that the level of subscription hit the highest threshold on many counts. The qualified Institutional Buyers (QIBs) category received a whopping 190.47 times subscriptions while the Non-Institutional Investors category got subscribed 129.06 times, Retail Individual Investors (RIIs) 34.55 times, and the holding company shareholder category got subscribed 12.41 times. Notably, Aeroflex IPO received more than 27 lakh applications which is the highest number of applications received across IPOs in 2023.
(Infographic Source: BSE / NSE disclosures)
Aeroflex is a manufacturer of environment-friendly Metallic Flexible Flow Solution products, catering to global markets. The Company exports products to more than 80 countries in Europe, North America among others. Its exports contributed more than 80% of its revenue from operations. Aeroflex products are supplied to a wide spectrum of industries for the controlled flow of all forms of substances including air, liquid, and solid.
The Company has grown at more than 37% revenue CAGR in last 3 years, operating at more than 4.85 times asset turnover, clocking more than 20% EBITA margins, and generating approximately 32% ROCE.
Aeroflex IPO Details
The Company launched its initial public offering of Rs 351 Crores (at upper price band) which opened on Tuesday, August 22, 2023, and closed on Thursday, August 24, 2023. The price band for the IPO was determined at Rs 102 – Rs 108 per equity share.
The Offer was made through the book-building process, wherein 1.54% of the total issue size was reserved with the holding company’s eligible shareholders. 50% of the Offer was available for allocation to Qualified Institutional Buyers, 15% of the Offer for Non-Institutional Investors, and 35% for Retail Individual Investors. The finalization of allotment is expected to take place on August 29, 2023. While refunds will be initiated on August 30,2023. The shares will be credited to the demat accounts of eligible investors on August 30, 2023. AIL share listing is expected to take place on August 31, 2023, on BSE and NSE.
Diversified Anchor Book Led by Marquee Institutions
The diversified anchor book of Aeroflex comprised 10 anchors including mutual funds, large insurance & NBFC treasuries, AIFs, and foreign portfolio institutions. The institutions that participated in the anchor are the following:
· Mutual Funds: Nippon Mutual Fund, Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund
· Institutional Treasuries: Winro Commercial India and Universal Sampo General Insurance
· AIFs: Quantun State Investment Fund and Negen Undiscovered Value Fund
· Foreign Institution: Societe Generale
Pre–IPO by Ace Investors
Earlier, marquee investors such as Ashish Kacholia, Jagdish Master, and Vikas Khemani led Carlenien Fund, Rosy Blue India, VPK Global Ventures Fund, Shyam Agarwal and others bought approximately 7% stake in Aeroflex ahead of the IPO
Pantomath Capital Advisors Private Limited acted as the exclusive transaction advisor and the sole book-running lead manager to IPO.