Aeroflex Industries Limited IPO

Aeroflex Industries Limited’s IPO aims to raise approx INR 350 crores comprising both fresh issue of INR 160 crores  and offer for sale of 190 crores. The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings and to cater the working capital requirement.

Aeroflex Industries Limited IPO – Important Details

Aeroflex Industries Limited IPO – Company Profile 

Aeroflex Industries is into manufacturing of eco-friendly metallic flexible solution products catering to global as well as domestic markets. The company recently developed products made of bronze. The company’s product range replaces traditional flow solutions made of rubber and polymers. 

The company runs an export-oriented business model, exporting their products to more than 80 countries and around 80% of their revenue comes from exports. 

The company believes in ‘Make-in-India, Make-for-World’ policy and have a manufacturing facility set up in  Navi-Mumbai,Maharashtra.

Aeroflex Industries Limited IPO – Fundamental Analysis

Revenue Growth: 

The company has shown consistent revenue growth over the years, increasing from ₹1,447.74 million in 2021 to ₹2,196.27 million in January 2023. This indicates a positive trend in its business operations.

Profitability: 

Profit after tax has also been increasing, from ₹60.11 million in 2021 to ₹223.08 million in January 2023. This suggests improved profitability.

Return on Net Worth (RoNW): 

RoNW has been fluctuating, with a substantial increase from 10.24% in 2021 to 31.90% in 2022 and then a decrease to 21% in January 2023. While the RoNW is healthy, the recent decrease may warrant further investigation.

Earnings per Share (EPS): 

Diluted EPS has shown steady growth, from ₹0.53 in 2021 to ₹1.95 in January 2023, indicating improved earnings per share.

Net Asset Value (NAV): 

The NAV per equity share has increased consistently, from ₹5.14 in 2021 to ₹9.29 in January 2023, showing an upward trend in the company’s asset value.

Total Liabilities: 

It’s worth noting that total liabilities decreased from ₹1,168.20 million in 2021 to ₹1,029.26 million in January 2023, which can be viewed as a positive sign.

Summary:

Overall, the financial figures demonstrate positive growth trends in terms of revenue, profitability, and asset value. However, the recent decrease in RoNW and the need for thorough due diligence should be considered before making an investment decision. Potential investors should carefully review the IPO prospectus, market conditions, and other relevant factors to make an informed investment choice. It’s advisable to consult with a financial advisor for personalized guidance on investing in the IPO.

Aeroflex Industries Limited IPO Financial Information

*Not annualised

Aeroflex Industries Limited IPO Peer Comparison

There are no listed companies in India that are engaged in a business similar to that of the Company accordingly it is not possible to provide an industry comparison in relation to our Company in India.

Aeroflex Industries Limited IPO Objective

Aeroflex Industries Limited’s IPO seeks to raise funds to repay INR 35 crores of secured borrowing, expand operations, invest in R&D, and support general corporate purposes, including technology advancement and future business expansion, based on a financing arrangement of INR 43.34 crores.

• Repayment or pre-payment of certain secured borrowing: The company had entered into financing arrangements worth INR 43.34 crores. Out of the said arrangement, INR 38.12 crores is outstanding and the company intends to use the raised funds to the extent of INR 35 crores to repay the borrowing. 
• Funding working-capital requirement: The company intends to expand their operation by offering solutions across existing and new material. The company also envisions expanding its R&D activities. 
• General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc.

Aeroflex Industries Limited IPO Risks And Challenges

Aeroflex Industries IPO carries risks due to high export dependence (80% of revenue) despite currency hedging and reliance on international suppliers (47% of raw materials) without long-term agreements, impacting supply stability and competitiveness.

1. Risk of foreign currency transactions: Upto Jan, 31 2023, almost 80% of the total revenue of the company is export-oriented. Although the company closely follows their exposure to foreign currencies and selectively enters into hedging transactions in an attempt to reduce the risks of currency fluctuations, these activities are not always sufficient to protect us against incurring potential losses if currencies fluctuate significantly.
2. Dependency on international suppliers for raw materials: The company’s competitiveness, costs and profitability depends on their ability to sustain stable and sufficient supply of raw materials. The company imports the majority of its stainless steel coils from international markets including China and Germany. Almost 47% of their raw material procurement was from outside India. Significant dependence on few suppliers without  any long term agreements may affect the availability of raw materials which could have an adverse impact on the company’s operations. 

Aeroflex Industries Limited IPO – Industry & Market Potential:

Transfer of media – be it liquid, gas or semi-solids – is an integral part of any industrial process. It goes beyond the industrial segment, finding applications in residential and commercial fields. Flexible Flow Solutions connect the origin and end point of the media transferred automatically and become an integral component.

Between FY ’18-9M FY23, over 1,840 projects (brownfield and greenfield) were completed in the manufacturing. With Flexible Flow Solutions made with Stainless Steel Corrugation application being universal, this large base is believed to have supported a strong demand for the product. The transition from traditional flexible hoses too has accelerated the demand growth.

Aeroflex Industries Limited IPO – Type of Offer

Aeroflex Industries Limited’s IPO involves a fresh issue of INR 160 Crore for debt repayment and working capital, along with an INR 190 Crore offer for sale (OFS) by existing shareholders, totaling INR 350 Crore expected.

• Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 160 Crore. This fund will be used to repay the existing borrowings and also fund the future working capital requirement.
• Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to raise INR 190 Crore. 

Therefore, the total money expected to be raised through this IPO is INR 350 Crore​​.

Aeroflex Industries Limited IPO Offer Size

The Aeroflex Industries IPO aims to raise a total of INR 350 Crore. This includes a fresh issue of INR 160 Crore and an offer for sale (OFS) of INR 190 Crore by the promoters. The funds from this IPO will be used to prepay or repay a portion of the company’s outstanding borrowings,meet the working capital requirement, and meet common corporate objectives​​.

Aeroflex Industries Limited IPO Allotment Structure

Aeroflex Industries Limited’s IPO allotment reserves 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs), based on SEBI regulations and investor categories.

• Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
• Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lahks.
• Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lahks.

How to apply for a Aeroflex Industries Limited IPO through Alice Blue?

To apply for the Aeroflex Industries Ltd IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Aeroflex Industries Ltd IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.

You can apply for Aeroflex Industries Ltd IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Aeroflex Industries Limited IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Aeroflex Industries Ltd IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Aeroflex Industries Ltdl IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Aeroflex Industries Ltd IPO:

• Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Aeroflex Industries Ltd IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
• NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Aeroflex Industries Limited IPO Offer Registrar

The registrar for the Aeroflex Industries Ltd IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai – 400 083, Maharashtra

Phone: +91 91 8108114949

Email: [email protected]

Website: www.linkintime.co.in

Aeroflex Industries Limited IPO FAQs