Many people might not be familiar with Aeroflex Industries Ltd. but it is one of the leading manufacturers and exporters of environment-friendly metallic piping solutions.
The global steel pipe market alone is valued at 97.88 billion USD in 2023 and is expected to reach 143 billion USD by 2032, i.e. at a growth rate of 3.9% CAGR. Metal pipes are essential components of the oil and gas, transportation and construction industry.
If you are looking forward to leveraging this industry’s growth potential and are willing to invest in the IPO of Aeroflex Industries Ltd. Check out this article to know the important details to make an informed decision.
Additional Read: IPO investment strategy
Table of Content
IPO Details
Aeroflex Industries Ltd. is going public with an objective to raise Rs.351 crores. Listed below are the details of the IPO.
| IPO opening date | August 22, 2023 |
| IPO closing date | August 24, 2023 |
| Total issue size | 32,500,000 equity shares (Rs. 351.00 crore approx) |
| Fresh issue size | 15,000,000 equity shares (Rs. 162.00 crore approx) |
| OFS size | 17,500,000 of Rs. 2 (Rs. 189.00 crore approx) |
| Issue type | Book Built Issue IPO |
| Listing at | BSE, NSE |
| Face value | Rs. 2 |
| Price range | Rs. 102 to Rs. 108 per share |
| Lot size | 130 Shares |
| Minimum investment amount (retail) | Rs. 14,040 (1 lot) |
| Maximum investment amount (retail) | Rs. 196,560 (14 lots) |
About the Company
Aeroflex Industries Ltd. primarily deals with the manufacturing of metallic flow solution products. Some of the SKUs include braided hoses, interlock hoses, unbraided hoses, gas hoses, and solar hoses. The company is also into export-oriented business being SS flexible flow solutions major export SKU.
The company has received several validation and certifications from numerous organisations but most importantly our success and goodwill get reflected in the approval and validation from our customers and OEMs (original equipment manufacturers).
IPO Tentative Timetable
| Anchor allocation date | August 21, 2023 |
| IPO opening date | Tuesday, 22 August 2023 |
| IPO closing date | Thursday, 24 August 2023 |
| Cut-off time for UPI mandate | 5 PM on Aug 24, 2023 |
| Basis of allotment | Tuesday, 29 August 2023 |
| Date of refund initiation | Wednesday, 30 August 2023 |
| Credit of shares to Demat | Thursday, 31 August 2023 |
| Listing date | Friday, 1 September 2023 |
IPO Lot size
| Application Type | Number of Lots | Amount |
| Minimum (retail investors) | 1 (130 shares) | Rs. 14,040 |
| Maximum (retail investors) | 14 (1820 shares) | Rs. 1,96,560 |
| Minimum (S-HNI) | 15 (1950 shares) | Rs. 2,10,600 |
| Maximum (S-HNI) | 71 (9230 shares) | Rs. 9,96,840 |
| Minimum (B-HNI) | 72 (9360 shares) | Rs. 10,10,880 |
| Maximum (B-HNI) | NA | NA |
Company Financials
| Parameters as Per the Year Ending on | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Total assets | 2139.77 | 1,834.38 | 1,616.43 |
| Total equity and liabilities | 2,139.77 | 1,834.38 | 1,616.43 |
| Total expenses | 2251.98 | 2,045.43 | 1,351.56 |
| Total revenue | 2694.78 | 2,409.92 | 1,448.35 |
| Profit after tax | 301.52 | 275.06 | 60.11 |
| EBITDA | 540.01 | 466.92 | 223.35 |
| Earnings per share (basic and diluted) | Basic 2.64, Diluted 2.64 | Basic 2.41, Diluted 2.41 | Basic 0.53, Diluted 0.53 |
*All figures are in Rs. millions except EPS
Additional Read: What is oversubscription in IPO?
Strengths
Here are the competitive strengths of Aeroflex Industries Ltd:
- Manufacturing Flexible Flow Solutions:
The company is a global flexible flow solutions provider mainly dealing with manufacturing metallic flexible hoses. It makes a wide variety of fixtures and fittings for the industrial sector for the transportation of liquid or semi-liquid substances.
- Export-Oriented Business:
Aeroflex Industry’s export-oriented business contributes a major portion of its revenue. They have well established themselves in the export market through exporting their main SKUs, namely SS Flexible Flow Solutions.
- Restricted Entry of New Players
Aeroflex Industry has several levels of quality checks and well-defined governance in the end-user industry. Their stringent ways of product designing, engineering and strict product approval system create an entry barrier for new players in the market.
- Experienced and Proficient Team Members:
The company has some brilliant minds working for it. Their expertise in their respective domains provides Aeroflex Industries with a competitive advantage as the company intends to grow its existing business and make entries in newer geographies.
Risk Involved
Here are some of the risks involved with investing in Aeroflex Industries Ltd:
- Raw Material Factors: There are always risks associated with the company’s raw material suppliers. In the event of a price increase or loss of any of their major raw material supplier, it can affect the overall business of the company.
- Dependence on Single Manufacturing Facility: Aeroflex Industries Ltd is dependent on a single manufacturing facility which can be one of the important risk factors. In case of any slowdown or shutdown, it can lead to an adverse effect on their operational capabilities.
Additional Read: Vishnu Prakash R Punglia Ltd. IPO
Summary
Aeroflex Industries Ltd is one of the leading manufacturers and exporters of metallic flow products and solutions. The company has a robust business revolving around metallic flow products and services catering industries across the globe.
The company is preparing to go public to raise Rs. 351 crores with a price band of Rs.102 to Rs. 108 per share. The two primary promoters of the company include Italica Global FZC and Sat Industries Ltd.
The IPO offer lasts till Thursday, 24th August. If you are planning to invest in this IPO, make sure to go through the RHP carefully.
