Apply for Aeroflex Industries Limited IPO through Alice Blue

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 IPO Date	22nd August 2023 to 24th August
Aeroflex Industries IPO Listing Date	NA
Aeroflex Industries IPO Price	INR 102 to 108 per share
Aeroflex Industries IPO Lot Size	130 Shares
Aeroflex Industries IPO Total Issue Size	Approx ₹350 Crores
Aeroflex Industries IPO Basis of Allotment	29th August,2023
Aeroflex Industries IPO Initiation of Refunds	30th August,2023
Aeroflex Industries IPO Credit of Shares to Demat	31st August,2023
Aeroflex Industries IPO Issue Type	Book Built Issue IPO
Aeroflex Industries IPO Listing At	BSE, NSE

Aeroflex Industries Limited IPO – Company Profile

The company 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 Objective

The key objective behind Aeroflex Industries Limited’s IPO is to support the company’s robust growth plans. With the capital raised, the company aims to:

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

Investing in IPOs comes with its own set of risks and challenges. For Aeroflex Industries IPO, these are some of the major risks and challenges

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.
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 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 Financial Information

Particular	As at 31 March 2021	As at 31 March 2022	As at 31 January 2023
Revenue (₹ in Million)	1,447.74	2,408.00	2,196.27
Equity (₹ in Million)	587.17	862.23	1,062.50
Expenses (₹ in Million)	1,351.56	2,045.43	1,862.04
Profit and Loss After Tax (₹ in Million)	60.11	275.06	223.08
RoNW (%)	10.24%	31.90%	21%*
Diluted EPS only (₹)	0.53	2.41	1.95
NAV per Equity Share (₹)	5.14	7.54	9.29
Total Assets (in million)	1,616.43	1,834.38	2,230.70
Total Liabilities (in million)	1,168.20	972.15	1,029.26

*Not annualised

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 Ltd IPO combines a fresh issue and an offer for sale (OFS).

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

The IPO allotment structure for Aeroflex Industries Ltd is planned as follows:

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 lakh.
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 lakh.

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

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

Click the link to log in to the IPO console.

Select the IPO you wish to apply for from the list of open issues.

Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.

Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.

When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.

After completing all the steps, read the declaration and click ‘Submit’.

Additional Steps to Follow:

After submitting the request, you will receive a mandate request on your UPI application. Accept the mandate request. Sometimes, it may take a few hours to receive the request. This action will reserve the required amount for the application until the allotment date. If the quantity is allotted, the funds will be debited from your bank account, and the shares will be credited to your demat account at Alice Blue.

Upon submitting the IPO bid request, you will receive an SMS from the exchange to confirm your application.

To check the status of your application, you can select the applied IPO, and you will be able to see the most recent bids updated in your application.
If you do not receive an allotment, the blocked funds will be released on the allotment date. The list of IPOs can also be viewed on the NSE website.

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

To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.

Visit the Link Intime page to determine the status of the allotted IPO.

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: aeroflexindustries.ipo@linkintime.co.in

Website: www.linkintime.co.in

Aeroflex Industries Limited IPO FAQs

What is the allotment date of the Aeroflex Industries Limited IPO?

The allotment date of the Aeroflex Industries Limited IPO is 29th August,2023.

What is the price band of Aeroflex Industries Limited IPO?

The price band of Aeroflex Industries Limited IPO is INR 102 to 108 per share.

What is the size of the Aeroflex Industries Limited IPO?

What is the listing date of the Aeroflex Industries Limited IPO?

The listing date of the Aeroflex Industries Limited IPO is 1st September,2023.