Aeroflex Industries IPO: All you need to know
The initial public offering (IPO) for Aeroflex Industries is set to open for subscription on 22 August 2023 to 24 August 2023. The set IPO price range is Rs. ₹102 and ₹108 with a lot size of 130 shares with a minimum investment of Rs. 14,040.
The listing date of the IPO is 1 September 2023. The total IPO size is Rs. 351 crore which includes a Rs. 162 Crore fresh issue and Rs. 189 crore Offer-for-Sale (OFS).
Aeroflex Industries IPO: Business Overview
Aeroflex Industries Limited produces and provides environmentally friendly metallic flow solution items that serve both local and global markets. The company has made its mark internationally, shipping its products to over 80 nations, notably including the USA and Europe. Demonstrating their dedication to accommodating various customer requirements, Aeroflex offers an extensive assortment of over 1,700 SKUs for their product lineup.
Established in 1993, Aeroflex Industries Limited, originally known as Suyog Intermediates Private Limited, specializes in the production and distribution of eco-friendly metallic flexible flow solution products.
Their diverse range of offerings comprises braided and unbraided hoses, solar and gas hoses, vacuum hoses, hose assemblies such as lancing and jacketed hose assemblies, interlock hoses, braiding, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators, and associated end fittings. As of March 31, 2023, Aeroflex boasts an impressive range of over 1,700 product SKUs in its lineup.
IPO Details:
| IPO Open and Close Date | Aug 22, 2023, to Aug 24, 2023 |
| IPO price range | ₹102 to ₹108 per share |
| Lot Size | 130 Shares |
| IPO size | Rs 351.00 Cr |
| Basis of Allotment | Tuesday, 29 August 2023 |
| Credit of Shares to Demat | Thursday, 31 August 2023 |
| Listing Date | Friday, 1 September 2023 |
(Source: DRHP)
Aeroflex Industries IPO Reservation:
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
(Source: DRHP)
Objective of the issue:
The company plans to use the money raised from the issue for the following purposes:
- The company aims to fully or partially pay off certain secured loans they have taken, including any early repayment fees if applicable.
- Providing funds for the company's day-to-day operations.
- For general business needs and unplanned external purchases.
Aeroflex Industries IPO: Financials
| Particulars | FY23(in Rs Crores) | FY22(in Rs Crores) | FY21(in Rs Crores) |
| Revenue | 269.48 | 241 | 144 |
| Profit After Tax | 30.1 | 27.5 | 6 |
| Assets | 214 | 183 | 161 |
| Liabilities | 45.01 | 39.13 | 53.07 |
(Source: DRHP)
The Assets have increased from Rs 183 Crores in March 2022 to Rs 214 Crores in March 2023, with a significant increase of 17% indicating overall Asset performance.
In terms of revenue, the Company has experienced significant growth in operations revenue, rising from Rs. 241 Crores in FY22 to Rs. 269.48 Crores in FY23, with a significant increase of 11.82%. Moreover, Net profits have also seen an increase, going up from Rs. 27.5 Crores in FY22 to Rs. 30.1 Crores in FY23, with a significant increase of 9.45% over the past year.
| KPI | Values |
| P/E (x) | 40.91 |
| ROE | 26.43% |
| Debt/Equity | 0.39 |
| EPS (Rs) | 2.64 |
Aeroflex Industries IPO: Strengths of the company
- worldwide provider of adaptable flow solutions, serving a vast potential market and catering to various industry sectors, is well-positioned to capitalize on major industrial movements.
- Export-oriented business model.
- Leading producer of flexible flow systems, uniquely crafted in India with advanced production facilities and research & development infrastructure, and no similar entities listed.
- High entry and exit barriers.
- Robust financial performance.
Peer Details:
In India, there aren't any publicly traded companies that operate in the same sector or line of business as the specified company, so a direct industry comparison within the country is challenging. However, on the international front, companies like Parker Hannifin Corporation and Senior PLC have similar operations and can be considered as global counterparts.