Aeroflex Industries Ltd & its Promoter Raised INR 427 Crores (Approx USD 52 Mn) through IPO & Pre-IPO; Pantomath Capital Solely Lead Managed It

 by Priya Jadhav                     

INR 351 Crores Initial Public Offering (IPO) of Aeroflex Industries was subscribed 97 times, receiving a response worth INR 24,500 Crores 

IPO received more than 27 lakh applications; the highest number fetched in any IPO during 2023 

Marquee anchor investors participated in IPO Anchor Book of INR 103 Crores 

Earlier, Pre-IPO stake worth INR 76 Crores was picked up by ace investors Ashish Kacholia, Jagdish Master and Vikas Khemani managed Carlenien Fund ahead of the IPO 

Pantomath Capital acted as exclusive Transaction Advisor and the Sole Book Running Lead Manager to the IPO

Mumbai, Tuesday, August 29, 2023: Mumbai-based Aeroflex Industries Ltd (‘Aeroflex’ / ‘the Company’) and its corporate Promoter, Sat Industries Limited, together raised INR 427 Crores (approximately USD 52 Mn) through Pre-IPO and IPO of Aeroflex. INR 76 Crores were raised in Pre-IPO round and INR 351 Crores were raised through IPO.

IPO received overwhelming response in all categories to the degree that the level of subscription hit the highest threshold on many counts. Qualified Institutional Buyers (QIBs) category received a whopping 190.47 times subscriptions while the Non-Institutional Investors category got subscribed 129.06 times, Retail Individual Investors (RIIs) 34.55 times and the holding company shareholder category got subscribed by 12.41 times.  Notably, Aeroflex IPO received more than 27 lakh applications which is the highest number of applications received across IPOs in 2023. 

Aeroflex is a manufacturer of environment-friendly Metallic Flexible Flow Solution products, catering to global markets. The Company exports products to more than 80 countries in Europe, North America among others. Its exports contributed more than 80% of its revenue from operations. Aeroflex products are supplied to a wide spectrum of industries for controlled flow of all forms of substances including air, liquid, and solid.

The Company has grown at more than 37% revenue CAGR in last 3 years, operating at more than 4.85 times asset turnover, clocking more than 20% EBITA margins and generating approximately 32% ROCE. 

Aeroflex IPO Details : The Company launched its initial public offering of Rs 351 Crores (at upper price band) which opened on Tuesday, August 22, 2023, and closed on Thursday, August 24, 2023. The price band for the IPO was determined at Rs 102 – Rs 108 per equity share.

The Offer was made through the Book Building process, wherein 1.54% of the total issue size was reserved with holding company’s eligible shareholders.  50% of the Offer was available for allocation to Qualified Institutional Buyers, 15% of the Offer for Non-Institutional Investors and 35% for Retail Individual Investors. The finalization of allotment is expected to take place on August 29, 2023. While refunds will be initiated on August 30,2023. The shares will be credited to the demat accounts of eligible investors on August 30, 2023. AIL share listing is expected to take place on August 31, 2023 on BSE and NSE.

Diversified Anchor Book Led by Marquee Institutions : Diversified anchor book of Aeroflex comprised 10 anchors including mutual funds, large insurance & NBFC treasuries, AIFs and foreign portfolio institution. The institutions who participated in the anchor are the following:  

Mutual Funds: Nippon Mutual Fund, Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund  

Institutional Treasuries: Winro Commercial India and Universal Sampo General Insurance 

AIFs: Quantun State Investment Fund and Negen Undiscovered Value Fund 

Foreign Institution: Societe Generale