Aeroflex Industries Limited is coming out with an IPO of Rs. 351 crores in the price band of Rs. 102 to Rs. 108 per equity share.
The IPO opened for subscription on 22nd August 2023. You can bid in the IPO till 24th August 2023. The fresh issue of equity shares part is Rs. 162 crores and the offer for sale (OFS) component is up to Rs. 189 crores in the Aeroflex Industries IPO.
Pantomath Capital Advisors is the Investment Banker handling the IPO and Link Intime India Pvt Limited is the Registrar to the IPO.
In the article, you will find all the relevant details that will help you make informed investment decisions in Aeroflex Industries Limited IPO.
Aeroflex Industries Limited IPO Details
| Particulars | Details |
| IPO Opening date | 22nd August 2023 |
| IPO Closing date | 24th August 2023 |
| IPO Price | Rs. 102 to Rs. 108 |
| Lot size | 130 shares |
| Issue size | Rs. 351 Cr |
| No. of fresh shares | 15,000,000 shares aggregating to Rs. 162 crores |
| Offer for Sale | 17,500,000 shares aggregating to Rs. 189 crores |
| Listing on | BSE and NSE |
Other upcoming IPOs in 2023.
Aeroflex Industries Limited IPO Timetable
| Particulars | Details |
| IPO Opening date | 22nd August 2023 |
| IPO Closing date | 24th August 2023 |
| Basis of Allotment date | 29th August 2023 |
| Credit of Share | 31st August 2023 |
| Listing date | 1st September 2023 |
Aeroflex Industries Limited GMP
Grey Market Price (GMP) provides you with a reasonable indication of price upon listing. But you need to take precautions because GMP is not an official price and only an indicative value.
The past 4-5 days GMP data from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
| Date | GMP |
| 22nd August 2023 | Rs. 68 |
| 21st August 2023 | Rs. 61 |
| 20th August 2023 | Rs. 61 |
| 19th August 2023 | Rs. 66 |
| 18th August 2023 | Rs. 68 |
| 17th August 2023 | Rs. 62 |
Aeroflex Industries Limited Issue Size
Total Issue Size = Rs. 351 crores.
(Fresh Shares of Rs. 162 Crs + OFS Portion of Rs. 189 Crs)
Industry Overview
Aeroflex Industries manufactures environment-friendly metallic flexible flow solutions. Globally, the market for SS flexible hose was estimated to value at approximately USD 25 Bn in 2020 with the size of SS corrugated hose estimated at USD 12.5 Bn.
The market is slated to grow to USD 38 Bn and USD 18 Bn by 2027, registering a CAGR of 7.5% and 6.3%, respectively.
Flexible Flow Solutions made with Stainless Steel Corrugation are also used as a heat transfer medium in the indirect cooling of lithium-ion batteries. This makes the product an integral part of the battery management system, and battery packs that are used for stationary and non-stationary applications.
Aeroflex Industries Limited Overview
Aeroflex manufactures and supplies environment-friendly metallic flexible flow solution products.
The products include –
- braided & unbraided hoses,
- solar hoses,
- gas hoses,
- vacuum hoses,
- interlock hoses & hose assemblies
- lancing hose assemblies,
- exhaust connectors,
- exhaust gas recirculation (EGR) tubes,
- expansion bellows, compensators, and related end fittings
Aeroflex exports products to more than 80 countries including Europe, the USA, and others. For Fiscals 2023 the exports were Rs. 217.18 crores which constituted 80.60% of revenue from operations.
They offer a range of metallic flexible corrugated hoses with diameters starting from ¼ inch to 14 inches. The company’s solutions are capable to handle varied environmental and work conditions and are designed to handle temperatures levels from negative 196 degrees Celsius to 982 degrees Celsius and pressure handling capacity of up to 300 bars
As of March 31, 2023, Aeroflex’s product portfolio comprised Stainless Steel Corrugated Flexible Hoses SS Braiding, Interlock Hoses and Assemblies catering to a diverse range of end-user industries like –
- steel, oil and gas fire sprinklers,
- refineries aerospace & defence,
- fire sprinklers & fire fighting,
- metals & mining,
- solar and other flexible flow solution
The following table sets forth a breakdown of Aeroflex revenue from operations from various industry segments, in absolute terms and as a percentage of total revenue from operations, for the periods indicated
Aeroflex’s manufacturing facility, located at Taloja, Navi Mumbai in the state of Maharashtra, is spread across 3,59,528 square feet of area.
For the Fiscal March 31, 2023, it exported products to 51 countries. The top 10 countries by export volumes for Fiscal March 31, 2023, included the USA, UAE, Spain, Italy, Canada, Belgium, Brazil, and UK.
Aeroflex Industries Limited Subscription Data
Subscription data shows the number of times the IPO is subscribed overall and also under each category. The day-wise subscription data is below.
| Date | QIB | NII | Retail | RPS* | Total |
| Day – 1 22nd August 2023 | 1.17 | 14.11 | 6.71 | 3.63 | 6.72 |
| Day – 2 23rd August 2023 | 8.05 | 46.42 | 17.78 | 11.46 | 21.10 |
| Day – 3 24th August 2023 | 194.73 | 126.13 | 34.41 | 28.52 | 97.11 |
Aeroflex Industries Limited Promoter Details
Sat Industries Limited is the promoter of the company and Italica Global FZC is the promoter group.
Both the promoters collectively hold 104,136,663 Equity Shares which is equal to 91.09% of the pre-issue shares issued.
Aeroflex Industries Limited Financials
Key financials of Aeroflex Industries Limited Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 213.97 cr | Rs. 183.43 cr | Rs. 161.64 cr |
| Total Income | Rs. 269.47 cr | Rs. 240.99 cr | Rs. 144.83 cr |
| Profit After Tax | Rs. 30.15 cr | Rs. 27.50 cr | Rs. 6.01 cr |
| Net Worth | Rs. 114.09 cr | Rs. 86.22 cr | Rs. 58.71 cr |
| Other Equity (including retained earnings) | Rs. 91.22 cr | Rs. 63.35 cr | Rs. 35.85 cr |
| Total Borrowing | Rs. 45.0 cr | Rs. 39.12 cr | Rs. 53.06 cr |
The total income of Aeroflex Industries Limited has grown in the last three years from Rs. 144 cr to Rs. 269 cr. The PAT has also grown 5 times from Rs. 6.01 cr to Rs. 30.15 cr during the same period.
The net worth almost doubled from Rs. 58.71 cr in FY 2021 to Rs. 114.09 cr in 2023. In the past three years, Aeroflex Industries Limited’s long-term borrowings has decreased from Rs. 53.06 cr to 45 cr.
Aeroflex Industries Limited Peer Comparison
There are no listed companies in India that are engaged in a business similar to that of Aeroflex Industries Limited accordingly it is not possible to provide an industry comparison.
But, globally, there are listed companies that are engaged in a similar business. Below table shows a comparison between Aeroflex Industries Limited and other globally listed companies.
| Company | Country | Currency | EPS | P/E | RoNW | NAV |
| Aeroflex Industries Limited Limited | India | INR | 2.64 | – | 26.43% | 9.98 |
| Parker Hannifin Corporation | USA | USD | 16.23 | 26.18 | 20.15% | 80.58 |
| Senior PLC | UK | GBP | 0.05 | 35.35 | 4.99% | 1.07 |
Aeroflex Industries Limited Objects of the Issue
Aeroflex Industries Limited proposes to utilize the Net Proceeds from the Issue for –
1. Repayment or pre-payment, of the outstanding borrowings availed for an amount of Rs. 32 crores.
As of July 31, 2023, Aeroflex’s aggregate outstanding borrowings amounted to Rs. 39.44 Cr.
Aeroflex Industries Limited majority of the borrowings is from Kotak Bank Limited.
2. Funding working capital requirements
Aeroflex Industries Limited’s business is working capital intensive. They fund a majority of their working capital requirements from banks, financial institutions and our internal accruals.
It has an estimated Rs. 161.16 cr working capital requirement for FY 2024 and Rs. 212.43 crore in FY 2025.
Aeroflex Industries Limited intends to use a total of Rs. 84 cr from the IPO proceeds to fund the working capital requirements. Rs. 54 crores in fiscal 2024 and the rest amount of Rs. 30 crores in 2025.
3. For General corporate purposes
The rest amount will be spent on general corporate purposes and unidentified inorganic acquisitions subject to such utilization not exceeding 35% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Should You Invest in Aeroflex Industries Limited IPO?
Aeroflex is a global flexible flow solutions provider catering to diverse industry segments. It has an Export-oriented business model.
They are the primary manufacturer of flexible flow solutions (Make in India with no listed peers with advanced manufacturing facilities and R&D infrastructure). The company is supported by an experienced and dedicated senior team across key functions.
The total income of Aeroflex Industries Limited is growing in the last three years from Rs. 144 cr to Rs. 269 cr. The PAT has also grown 5 times from Rs. 6.01 cr to Rs. 30.15 cr during the same period.
The net worth almost doubled from Rs. 58.71 cr in FY 2021 to Rs. 114.09 cr in 2023. In the past three years, Aeroflex Industries Limited’s long-term borrowings have decreased from Rs. 53.06 cr to 45 cr.
Key risk to consider are –
- Import duties or restrictions in export destination countries will hamper the revenues of the company.
- Aeroflex is dependent on China for a significant portion of raw material suppliers.
- It is dependent on a single manufacturing facility located at Taloja, Maharashtra
- Competition from other large and small global and domestic players
