The ₹351-crore initial public offering of Aeroflex Industries Ltd opens today in a price band of ₹102-₹108. Investors can bid for a minimum of 130 equity shares. The IPO has reserved not more than 50 per cent of the shares for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional investors (NII), and not less than 35 per cent for retail investors.
The IPO consists of a fresh issue worth ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore shares by the promoter, Sat Industries.
As part of the IPO process, Aeroflex Industries on Monday raised ₹104 crore from anchor investors by allocating 95.99 lakh equity shares to 15 funds at Rs 108 apiece. Among them are Societe Generale, Winro Commercial India Fund Ltd, Universal Sompo General Insurance Company Ltd, Nippon India Mutual Fund, WhiteOak Mutual Fund, Bank of India Mutual Fund and Invesco Mutual Fund.
Pre-IPO investors
Marquee investors such as Ashish Kacholia, Jagdish Master and the Vikas Khemani-led Carnelian Fund and other investors bought approximately 7 per cent stake in Aeroflex Industries in a pre-IPO placement.
The Mumbai-based Aeroflex is a manufacturer and supplier of metallic flexible flow solution products. It exports its products to more than 80 countries across Europe, the US, and others, and generates 80 per cent of its revenue from exports.
Proceeds from the fresh issue will be utilised for payment of a debt, and to fund working capital requirements. A certain amount will be used for general corporate purposes and acquisitions for inorganic growth.
Pantomath Capital Advisors is the sole book-running lead manager to the issue. The company’s equity shares are proposed to be listed on the BSE and NSE.