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The ₹351-crore initial public offering of Aeroflex Industries that opened on Tuesday saw an overwhelming response from all category of investors. It subscribed 6.72 times on Day 1 of issue opening itself. The public issue comes at a price band ₹102-108 and investors can bid for a minimum of 130 equity shares. The issue received bids of 15.60 crore shares against the offered 2.32 crore shares on offer.
Aeroflex Industries Limited IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non institutional investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.
Non-Institutional Investors Portion was the most subscribed with 14.11 times, followed by Retail with 6.71 times. Qualified Institutional Buyer Portion was subscribed 1.17 times. The issue will close on Thursday (August 24).
The IPO consists of a fresh issue worth ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore shares by promoter Sat Industries.
As part of IPO process, Aeroflex Industries on Monday raised Rs 104 crore from anchor investors by deciding to allocate 95.99 lakh equity shares to 15 funds at Rs 108 apiece. Among them included, 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-PO investors
Marquee investors such as Ashish Kacholia, Jagdish Master and 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, catering to global markets. It exports its products to more than 80 countries, including 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 funding working capital requirements, and 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.
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