Aeroflex Industries IPO Opens: The Price Range Is Set At Rs 102-108 Per Equity Share.

Aeroflex Industries’ initial public offering (IPO) of Rs 351 crore commenced on August 22. Here is complete details about Aeroflex Industries IPO. The IPO consists of a fresh share issue worth Rs 162 crore and an offer-for-sale (OFS) segment where existing shareholders will sell shares worth Rs 189 crore. The IPO price range is set at Rs 102-108 per equity share. Notably, the grey market premium for Aeroflex Industries shares surged by 63% recently, indicating a listing price of around Rs 176 per share.

Aeroflex Industries IPO Date, Price, Expected Listing Target

Prior to the IPO opening, the company secured Rs 103.68 crore from anchor investors on August 21. The subscription period for the IPO will close on August 24. The allotment of units is projected for August 29, with the expected listing on the stock exchanges on September 1. As of Tuesday morning, the IPO was oversubscribed, with retail and non-institutional investors bidding 1.46 times and 1.31 times their respective allocations.

Aeroflex Industries, a subsidiary of SAT Industries, specializes in manufacturing environmentally friendly metallic flexible flow solution products, including hoses, tubes, and hose assemblies. Its customer base spans distributors, fabricators, maintenance repair and operations companies (MROs), original equipment manufacturers (OEMs), and diverse industries. The company has ventured into producing bronze products, which are gaining traction due to their advantages over rubber and polymer alternatives. The product portfolio includes over 1,700 Stock Keeping Units (SKUs).

Considering the IPO decision, financial experts from Swastika Investmart and Reliance Securities are optimistic. Swastika Investmart emphasizes the company’s strong financial growth and unique market position. While the lack of long-term contracts and international risks are concerns, the company’s expansion strategies and technological investments are viewed positively. Reliance Securities highlights the IPO’s valuation at 42x P/E, 26.6x EV/EBITDA, and 5.3x EV/Sales based on FY23 data. The company’s diverse product portfolio, sound financials, global presence, and focus on capacity expansion and R&D capabilities lead them to recommend subscribing to the IPO.