Non-institutional investors portion was the most subscribed at 88 times, followed by the retail portion with 26.10 times. The reservation shareholders portion was subscribed 18.46 times, whereas the qualified institutional buyer category was subscribed 28.56 times.
According to market sources, the company’s shares are commanding a premium of Rs 72 in the unlisted market.
Analysts gave a thumbs-up to the issue as it offers a favourable risk-reward ratio for long-term investors, given its unique business model, decent return ratios and margins.
The company, which is backed by marquee investors Ashish Kacholia and others, plans to raise Rs 351 crore at the upper price band of Rs 108.
Aeroflex Industries is a market leader in the field of metallic flexible flow solutions, offering a comprehensive range of products including corrugated stainless steel hoses and interlock flexible metal hoses.
The company has grown at more than 37% revenue CAGR in the last 3 years, operating at more than 4.85 times asset turnover, over 20% EBITA margins and generating approximately 32% ROCE.The IPO, with a face value of Rs 2 per equity, is priced in the range of Rs 102-108. The issue consists of a fresh equity of Rs 160 crore and an offer-for-sale (OFS) of up to 17.5 million equity shares by promoters selling shareholders.
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 35% of the offer is set aside for retail investors.
The proceeds from the issue will be utilised to the extent of Rs 35 crore for the prepayment of outstanding secured borrowings availed by the company, Rs 84 crore for funding its working capital requirements, and certain of the amount will be used for general corporate purposes and acquisitions for inorganic growth.
Pantomath Capital is the sole book running lead manager to the IPO and Link Intime India is the registrar of the offer. The company’s equity shares are proposed to be listed on the BSE and NSE.