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The Indian stock markets reached unprecedented heights in July 2023 by crossing the 19000 and the 67000 points mark on Nifty and Sensex respectively. This heightened buzz is bringing IPOs back to the stock markets with the latest offering from Aeroflex Industries Limited.
Aeroflex Industries Limited IPO will open for subscription from 22nd August 2023 to 24th August 2023.
Here are all the important details of Aeroflex Industries Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Aeroflex Industries Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 22nd August 2023 |
| IPO Closing Date | 24td August 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 102 – Rs. 108 per share |
| IPO Size | Rs. 351 crores |
| Offer for Sale | Rs. 189 crores |
| Fresh Issue | Rs. 162 crores |
The important dates for Aeroflex Industries Limited IPO are highlighted below:
| Event | Date |
| Opening date | 22nd August 2023 |
| Closing Date | 24th August 2023 |
| Allotment date | 29th August 2023 |
| Refund Date | 30th August 2023 |
| Share Credit Date | 31st August 2023 |
| Listing Date | 1st September 2023 |
Investors can subscribe to Aeroflex Industries Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 13,260 – 14,040 Maximum – Rs. 1,96,560 |
| Shares | Minimum – 130 Maximum – 1820 |
The price range of Aeroflex Industries IPO is Rs. 102 to Rs. 108.
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
Aeroflex Industries Limited IPO is part Fresh Issue and part an Offer for Sale. The objectives of this IPO are mentioned below.
Established in 1993, initially as Suyog Intermediates Private Limited, Aeroflex Industries Limited is renowned for producing and supplying environmentally friendly metallic flexible flow solutions.
The company’s array of offerings encompasses an extensive product line such as braided hoses, solar hoses, gas hoses, vacuum hoses, interlock hoses, and hose assemblies, among others. Presently, the company boasts a product portfolio of over 1,700 distinct Stock Keeping Units (SKUs) as of March 31, 2023.
Aeroflex Industries operates from a sprawling 3,59,528 square feet manufacturing facility situated in Taloja, Navi Mumbai, Maharashtra. This facility is well-equipped with an array of machinery, including corrugation, interlocking, and braiding machines, along with assembly equipment. Rigorous quality assessments are carried out on each product before they are dispatched, with a dedicated team of 25 experts overseeing the quality control process. These assessments align with ISO 10380:2012 standards and encompass tests such as Leakage, Ultrasonic, Vacuum, Pressure Resistance, and more.
The company’s customer base is diverse, encompassing distributors, fabricators, MROs, OEMs, and businesses across a wide spectrum of industries.
The registrar of Aeroflex Industries Limited IPO is Link Intime India Private Limited.
Aeroflex Industries Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations(Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 214 | 269 | 30 | Rs.2.64 | 26.43% |
| Mar-2022 | 183 | 240 | 27 | Rs.2.41 | 31.90% |
| Mar-2021 | 162 | 144 | 6 | Rs.0.53 | 10.24% |
(Source: RHP)
Some of the key strengths of Aeroflex Industries Limited IPO that investors can take note of are
| Category | Details |
| Business model | Aeroflex Industries Limited’s strengths lie in its global presence as a provider of flexible flow solutions, serving a wide array of industry sectors within the market it addresses. They have an export-oriented business model and have shown robust financial performance. Aeroflex sets itself apart as a leading producer of flexible flow solutions, adhering to the “Make-in-India, Make-For-World” approach, supported by state-of-the-art manufacturing and research facilities. |
| Other merits | The company has no listed peers in its business segment and is in an industry with high entry and exit barriers. They have an experienced and dedicated senior team across critical functions of the business. |
Here are some of the risks that investors of Aeroflex Industries Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s reliance on a single manufacturing facility exposes it to potential risks, as any slowdown or shutdown in operations could have adverse repercussions on its business. A significant portion of the company’s revenue (80%) comes from exports, leaving it vulnerable to the impact of geopolitical uncertainty and global economic downturns that might affect its performance. The company’s dependence on external sources for raw materials and product delivery leaves it susceptible to disruptions in the supply chain, potentially leading to production setbacks and increased costs. |
| Other concerns | Ineffectively implementing production schedules could have a substantial negative impact on the company’s business and financial performance. The presence of a fragmented and diverse competitive landscape exposes the company to competition from both larger and smaller players, globally and domestically, which could impact its operations and financial stability. |
As of August 20th, 2023, the grey market premium for the shares of Aeroflex Industries Limited IPO is Rs. 61 as per market observers. This means the shares are expected to list at a premium of Rs. 61 per share over the listing cap price of Rs. 108.
Aeroflex Industries Limited enjoys a monopolistic position in the stainless steel corrugated hose assembly business. They have a significant export revenue making them an export-oriented unit. The company has also shown good financial performance, however, investors need to apply for this IPO after a thorough analysis of the company fundamentals and the overall industry outlook.
Investing in IPO or shares both offer a chance to be part of a company whether it is being offered to the public for the first time or is an already listed company. The choice of investing between IPO or shares depends on individual risk preference, timing and returns expectations as well as the overall outlook of the industry that the company belongs to.
Investors can invest in this IPO through the Fisdom app.
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