Airfloa Rail Technology Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹140
Per ShareLot Size
1000 Shares
Minimum Investment
₹1,40,000
Issue Size
₹91.1 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35.01%
QIB Quota
49.94%
NII Quota
15.05%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Airfloa Rail Technology Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
74.4%
Promoter Holding (Post-Issue)
54.2%
Issue Type
Book Building - SME
ISIN
INE0XBS01012
About the Company
We are engaged in the manufacturing of components which are used in the rolling stock for the Indian Railways through railway production units like Integral Coach Factory ("ICF"), other coach factories. In addition to manufacturing the rolling stock components, we carry out turnkey interior furnishing projects for Indian Railways. In the aerospace and defence sectors, we manufacture intricate, highly engineered, and vital components. Along with Indian Railways through ICF and other coach factories, we also serve other Rails factories, and global rolling stock OEMs.
Industry Overview
The government of India has focused on investing in railway infrastructure by making investor-friendly policies. It has moved quickly to enable Foreign Direct Investment (FDI) in railways to improve infrastructure for freight and high-speed trains. At present, several domestic and foreign companies are also looking to invest in Indian rail projects. Indian railways launched Semi-high-speed self-propelled trains that have ultra-modern features like quick acceleration, a substantial reduction in travel time, a maximum speed of 160 kmph, on-board infotainment and GPS-based passenger information system, automatic sliding doors, retractable footsteps and Zero discharge vacuum bio-toilets, CCTV cameras etc. and other contemporary features as per global standards. According to Indian Railways 2023 book, Indian railways plan to market semi-high-speed `Vande Bharat' trains by 2025-26 to European, South American, and East Asian markets for exporting 'Made in India' trains.
Company History
Our Company was originally incorporated as `Air Flow Equipments (India) Private Limited' a private limited company under the Companies Act, 1956 at Chennai, Tamil Nadu, pursuant to a certificate of incorporation dated December 14, 1998, issued by the Registrar of Companies, Tamil Nadu, Chennai, ("RoC"). Thereafter, name of our Company was changed from `Air Flow Equipments (India) Private Limited' to `Airfloa Rail Technology Private Limited', consequent to name change, pursuant to a special resolution passed by the shareholders of our Company on July 18, 2024, and a fresh certificate of incorporation consequent to change of name was issued by the Registrar of Companies, Central Processing Centre on August 27, 2024. Thereafter, name of our Company was changed from `Airfloa Rail Technology Private Limited' to `Airfloa Rail Technology Limited', consequent to conversion of our Company from private to public company, pursuant to a special resolution passed by the shareholders of our Company on September 12, 2024 and a fresh certificate of incorporation consequent to conversion of the company was issued by the Registrar of Companies, Central Processing Centre on November 15, 2024. Our Company's Corporate Identity Number is U30204TN1998PLC041571.
Products & Services
- The Company is engaged in the manufacturing of components which are used in the rolling stock for the Indian Railways through railway production units like Integral Coach Factory ("ICF"), other coach factories.
Growth Strategy
- Leverage our industry-leading capabilities to diversify our customer base further and enhance our penetration and wallet with existing clients by introducing new component lines.
- Expand our manufacturing capabilities to Enhance Client Servicing, Achieve Scale and Deliver Execution Excellence.
- Optimize Costs, Enhance Efficiency, Advance Technology and Strengthen Financial Position.
- Transitioning to a Full-Fledged Rolling Stock Solutions Provider.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets for the last reported financial year.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 65,07,000 equity shares of face value Rs. 10/- each (the "Equity Shares") of Airfloa Rail Technology Limited ("the Company" or the "Issuer") for cash at an issue price of Rs. 140 per equity share (including a securities premium of Rs. 130 per equity share) ("Issue Price"), aggregating up to Rs. 91.10 crores (the "Issue") of which 3,26,000 equity shares aggregating to Rs. 4.56 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 61,81,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 140 per equity share aggregating upto Rs. 86.53 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 27.15 % and 25.79 % respectively of the post-issue paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Experienced Promoters having deep domain knowledge to scale up the business.
- In house manufacturing capabilities.
- Long-standing customer base leading to stability in our business operations.
- Management team having established track record.
- Established track record of successfully completed projects.
- The company is business and revenues are substantially dependent on Indian Railways. Any adverse change in policy of the Ministry of Railways, GOI "MoR" may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on the company business and results of operations.
- The company is depend on the entities under Indian Railways for a significant portion of contracts in its order book which are awarded on a tender basis. There is no assurance that its bids will be accepted and future contracts will be awarded to it by Indian Railways. This may result in an adverse effect on the company business growth, financial condition and results of operations.
- Increases in the prices of raw materials required for the company operations could adversely affect its business and results of operations.
- Its Subsidiary company is in a similar line of business as it which may involve conflict of interest, which could adversely impact the company business.
- The Company operations are subject to high working capital requirements. If its are unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on the company results of operations.