Aeroflex Industries Lists At Rs 197; 83 Per Cent Premium To Its IPO Price

Aeroflex Industries Listing: The stock started trading at Rs 197.40 on the BSE and Rs 190 on the NSE

Aeroflex Industries IPO: The Rs 351-crore public issue got good response from investors, subscribing 97.11 times during August 22-24.

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Aeroflex Industries on Thursday made a stellar debut on the exchanges, listing at 82.78 per cent premium over the issue price of Rs 108. The stock started trading at Rs 197.40 on the BSE and Rs 190 on the NSE. The Rs 351-crore public issue got good response from investors, subscribing 97.11 times during August 22-24. Qualified institutional buyers have bought 194.73 times the reserved portion, followed by high net worth individuals, who have bid 126.13 times the allotted quota, and retail investors 34.41 times.

Ashish Kacholia-backed firm’s IPO listing was more or less in-line with analysts' expectations as the company enjoys the first mover advantage, robust subscription demand for IPO, and healthy financial performance with improving debt-to-equity ratio.

Aeroflex Industries, which is a flexible flow solutions company, develops and manufactures environment-friendly metallic flexible corrugated hoses, assemblies, and fittings. Asad Daud, managing director, Aeroflex Industries said, "We provide critical components for various industries to facilitate smooth flow of solids, liquids and gases. We cater to industries such as steel, oil & gas, fire sprinklers, and solar. We are also looking at EV mobility, semiconductor and new-age sectors as well.”

As on March 31, 2023, Aeroflex Industries had more than 1,700 product SKUs (Stock Keeping Units) in its product portfolio and had exported products to 51 countries. The company exports its products to more than 80 countries, including Europe and the US. Over 80 per cent of its revenue comes from exports, according to news reports.

Aeroflex Industries' revenue, EBITDA, and PAT grew at compounded annual growth rate of 36.43 per cent, 55.54 per cent, and 123.97 per cent, respectively, between FY21 and FY23. In FY23, the company's EBITDA and PAT margin stood at 20.05 per cent and 11.19 per cent, respectively, for FY23.

Disclaimer: This report is meant only for information purposes. It should not be treated as a stock recommendation. Reader discretion advised.