Aeroflex Industries IPO subscribed 21.10 timeson Day 2
Initial Public Offering of Mumbai based Aeroflex
Industries Limited (‘Aeroflex” or “the Company”) is a manufacturer of
environment friendly Metallic Flexible Flow Solution products, catering to global
markets. Aeroflex exports its products to more than 80 countries including
Europe, USA and others, generating more than 80% of its revenue from exports
was subscribed 21.10 times on the second day of bidding.
The
issue received
bids of 48,98,46,370 shares against the offered 2,32,17,667 equity shares, at a
price band of ₹102-108, according to the data available on the stock exchanges.
Non-Institutional
Investors Portion was the most subscribed with 46.42 times, followed by Retail Portion
with 17.78 times. Reservation Shareholders Portion was subscribed 11.46 times,
whereas Qualified Institutional Buyer Portion was subscribed 8.05 times. The issue kicked off for subscription on Tuesday, August
22, 2023 and will close on Thursday, August 24, 2023.
A day prior to
the opening of the issue, Aeroflex Industries Ltd had raised Rs 104 crore from
anchor investors. Foreign Investors and Domestic Institutions
who participated in the anchor wereNippon
Life, Invesco, Winro Commercial India, Whiteoak Capital Mutual Fund, Bank of
India Mutual Fund, Quatum State Investment Fund, SocieteGenerale, and Universal
Sompo General Insurance Company.
Leading brokerage firms including SBI Securities, Anand
Rathi, BP Equities (StoxBox) Reliance Securities, AUM Capital, Arihant Capital,
Sushil Finance, and Swastika have rated Aeroflex as a "Subscribe,"
praising its dominant domestic market share in a niche segment, its
export-oriented business plan, and its diverse clientele and product portfolio.
Backed by seasoned promoters and prominent HNI investors, the company also
enjoys high entry and exit barriers through stringent quality standards.
However, the broking houses noted that lack of
long-term contracts with its clients, a key risk variable to monitor going
forward.
Pantomath Capital Advisors Private Limited is the sole book-running lead manager. Company’s equity shares are proposed to be listed on the BSE and NSE.
Company Information
Aeroflex’s
solutions find application in a wide spectrum of industries for controlled flow
of all forms of substances including air, liquid and solid. The Company’s
manufacturing facility and NABL accredited R&D lab are situated at Taloja,
Navi Mumbai. The Company has filed its Draft Red Herring Prospectus (DRHP) with
SEBI to raise about Rs. 350 crores through an Initial Public Offering (IPO).
Aeroflex
is subsidiary of Sat Industries Limited which is also listed on BSE and NSE.
Both Aeroflex and Sat Industries Limited have dividend payment history. Sat
Industries Limited has track record of scaling up of multiple diverse
businesses backed by acquisition led strategy.
Flexible flow
solutions play a critical role in transfer of substances (air, liquid and
solid) in any industrial or commercial ecosystem, connecting the origin and end
points of various processes. The Company offers its products under more than
1,700 SKUs (Stock Keeping Units). The Company has recently developed products
made of bronze as well and has a pipeline of more than 55 products as on date. Given
the complexity of the research and product development, varying product
applications, necessary technical expertise, precision involved, lengthy and
stringent customer qualification processes, Aeroflex’s business model poses
significant entry barriers (to new entrants) as well as exit barriers (to existing
customers).
The table below shows subscription data for all the categories of investors:
|
AEROFLEX INDUSTRIES LIMITED Last updated on |
||||
|
Sr.No. |
Category |
No.of shares offered / reserved |
No. of shares bid for |
No. of times of total meant for the category |
|
1 |
Qualified Institutional Buyers (QIBs) |
62,76,490 |
5,04,94,730 |
8.05 |
|
1(a) |
Foreign Institutional Investors (FIIs) |
- |
4,79,180 |
- |
|
1(b) |
Domestic Financial Institutions(Banks/ Financial
Institutions(FIs)/ Insurance Companies) |
- |
25,610 |
- |
|
1(c) |
Mutual Funds |
- |
48,02,070 |
- |
|
1(D) |
Others |
- |
4,51,87,870 |
- |
|
2 |
Non Institutional Investors(NIIS) |
49,32,353 |
22,89,55,740 |
46.42 |
|
2.1 |
Non Institutional Investors(Bid amount of more
than Ten Lakh Rupees) |
32,88,236 |
13,09,33,140 |
39.82 |
|
2.1(a) |
Corporates |
- |
34,57,740 |
- |
|
2.1(b) |
Individuals (Other than RIIs) |
- |
11,21,41,640 |
- |
|
2.1(c) |
Others |
- |
1,53,33,760 |
- |
|
2.2 |
Non Institutional Investors(Bid amount of more
than Two Lakh Rupees and upto 10 lakh rupees) |
16,44,117 |
9,80,22,600 |
59.62 |
|
2.2(a) |
Corporates |
- |
1,40,140 |
- |
|
2.2(b) |
Individuals (Other than RIIs) |
- |
8,50,93,710 |
- |
|
2.2(c) |
Others |
- |
1,27,88,750 |
- |
|
3 |
Retail Individual Investors (RIIs) |
1,15,08,824 |
20,46,65,370 |
17.78 |
|
3(a) |
Cut Off |
- |
17,72,89,710 |
- |
|
3(b) |
Price Bids |
- |
2,73,75,660 |
- |
|
4 |
Employee Reserved |
- |
- |
- |
|
4(a) |
Employee (Cut off) |
- |
- |
- |
|
4(b) |
Employee (Price) |
- |
- |
- |
|
5 |
Reservation PortionShareholder |
5,00,000 |
57,30,530 |
11.46 |
|
5(a) |
RPS (Cut off) |
- |
21,79,190 |
- |
|
5(b) |
RPS (Price) |
- |
35,51,340 |
- |
|
Total |
2,32,17,667 |
48,98,46,370 |
21.10 |
|
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