Aeron Composite Limited is launching an IPO with a fresh issue of 44,88,000 shares worth INR 56.10 crores. The company aims to fund CapEx for a new manufacturing unit and support general corporate purposes.
Aeron Composite IPO – Important Dates
| Aeron Composite Limited IPO Date | August 28, 2024 to August 30, 2024 |
| Aeron Composite Limited IPO Listing Date | September 4, 2024 |
| Aeron Composite Limited IPO Price | INR 121-125 per share |
| Aeron Composite Limited IPO Lot Size | 1000 Shares |
| Aeron Composite Limited IPO Total Issue Size | INR 56.10 crores |
| Aeron Composite Limited IPO Basis of Allotment | September 2, 2024 |
| Aeron Composite Limited IPO Initiation of Refunds | September 3, 2024 |
| Aeron Composite Limited IPO Credit of Shares to Demat | September 3, 2024 |
| Aeron Composite Limited IPO Issue Type | Book Built Issue IPO |
| Aeron Composite Limited IPO Listing At | NSE SME |
Aeron Composite Limited IPO – Company Profile
Aeron Composite Limited manufactures and supplies FRP products, including Pultruded Products, Moulded Gratings, and FRP Rods. They offer a complete solution from design to after-sales service, providing high-strength, corrosion-resistant, lightweight materials for industrial applications.
The manufacturing unit specializes in FRP products and is accredited with ISO 9001:2015. An in-house R&D unit is DSIR-registered, and the company recently achieved “Two Star Export House” status under the 2023 Foreign Trade Policy.
Since 2011, the company has grown into a global provider of FRP products, serving 800+ customers across 30+ countries. It operates a large manufacturing unit and marketing office in Ahmedabad, catering to diverse industries.
Aeron Composites Ltd IPO Fundamental Analysis
Aeron Composite Limited Technologies’ financial analysis reveals a mixed performance. Revenue has steadily increased, with rising profitability, improved EPS, higher RoNW, more robust financial position, and efficient inventory management reflecting business growth and reduced debt reliance.
- Revenue Trend: The revenue increased from ₹10,833.53 lakhs in March 2022 to ₹17,938.42 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 17,914.46 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹362.12 lakhs in March 2022 to ₹942.23 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.95 in March 2022 to ₹7.52 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 21.13% to 26.07%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Aeron Composite IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 10,833.53 | 17,938.42 | 17,914.46 |
| Equity (₹ in lakhs) | 1,557.35 | 2,535.96 | 3,478.19 |
| Expenses (₹ in lakhs) | 10,490.58 | 17,243.20 | 16,743.75 |
| Profit and Loss After Tax (₹ in lakhs) | 362.12 | 661.15 | 942.23 |
| Diluted EPS only (₹) | 2.95 | 5.33 | 7.52 |
| Return on Net Worth (%) | 21.13 | 23.25 | 26.07 |
| NAV per Equity Share (₹) | 9.85 | 12.70 | 20.44 |
| Total Assets (in lakhs) | 6,063.23 | 6,910.21 | 9,979.42 |
| Total Liabilities (in lakhs) | 4,505.88 | 4,374.25 | 6,501.23 |
| Debt Equity Ratio | 0.81 | 0.55 | 0.35 |
| Current Ratio (in times) | 1.23 | 1.37 | 1.33 |
| Inventory Turnover Ratio | 81 | 60 | 63 |
Aeron Composite Limited IPO Peer Comparison
No listed companies in India are engaged in a business line similar to Aeron Composite Limited’s. Thus, it is impossible to provide an industry comparison of their company.
Aeron Composites Ltd IPO Objective
The main objective of Aeron Composite Limited is to fund CapEx for a new manufacturing unit.
- Funding the Capital Expenditure requirements to set up an additional manufacturing unit: The company intends to utilize INR 39.04 crores from Net Proceeds for capital expenditures to expand its manufacturing unit in Mehsana, Gujarat, producing new FRP and CFRP products to enhance operational efficiency and scale.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses, initial project development, strengthening business development and marketing, addressing unforeseen contingencies, and other business needs.
Aeron Composite Limited IPO Risks And Challenges
Aeron Composite Limited’s risk includes fluctuating raw material prices, supply disruptions, dependence on key suppliers without long-term contracts, and potential delays or cost overruns during the shift to the new manufacturing unit.
- Fluctuating raw material prices, supply disruptions, and lack of long-term supply agreements could lead to cost overruns, reduced profitability, and adverse impacts on operations, financial performance, and customer satisfaction.
- Dependence on a few critical suppliers without long-term contracts and reliance on Gujarat for primary raw material sourcing could lead to supply disruptions, affecting production schedules, profitability, and customer relations.
- Potential delays, cost overruns, or operational shutdowns during the shift to the new manufacturing unit may disrupt production, impact cash flows, and adversely affect the company’s operations and financial condition.
Aeron Composites Ltd IPO – Industry & Market Potential
India’s manufacturing exports reached a record US$447.46 billion in FY23, with growth driven by robust manufacturing and construction sectors. This position will make India a potential global manufacturing hub by 2030.
Driven by foreign investments and government initiatives, India’s manufacturing sector is poised for significant growth, potentially reaching US$ 1 trillion by 2025, with enhanced competitiveness and industrial development through programs like SAMARTH Udyog Bharat 4.0.
Projected to reach US$ 1.9 billion by 2026, the Indian composites market is increasing, fueled by demand in the automotive, aerospace, and defense sectors. Yet, high costs and processing challenges could limit automotive market growth.
Aeron Composite SME IPO – Type of Offer
Aeron Composite Limited is launching an IPO with a fresh issue of 44,88,000 shares worth INR 56.10 crores. The company aims to fund CapEx for a new manufacturing unit and support general corporate purposes.
Aeron Composite IPO Offer Size
The offer size of Aeron Composite Limited is INR 56.10 crores, consisting of a fresh issue of 44,88,000 shares. The company seeks funds for CapEx for a new manufacturing unit and supports general corporate purposes.
Aeron Composite Limited IPO Allotment Structure
Aeron Composite Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 228,000 shares are reserved for market makers.
● 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 lakhs.
● 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 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 228,000 shares, are reserved for market makers.
How to apply for Aeron Composite IPO?
To apply for the Aeron Composite Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Aeron Composite Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Aeron Composite Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After 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 do you check Aeron Composite IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- 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.
- 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.
- Select the Aeron Composite Limited 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 Aeron Composite Limited IPO.
- 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Aeron Composite Limited IPO:
● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the Aeron Composite Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Aeron Composite Ltd IPO Offer Registrar
The registrar for the Aeron Composite Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAASHITLA SECURITIES PRIVATE LIMITED
451, Krishna Apra Business Square,
Netaji Subhash Place, Pitampura,
New Delhi, 110034, Delhi, India
Telephone: +91-11-45121795
Email: [email protected]
Investor Grievance Email: [email protected]
Website: www.maashitla.com
Aeron Composite IPO – FAQs
1. What is the allotment date of the Aeron Composite IPO?
The allotment date of the Aeron Composite Limited IPO is August 30, 2024.
2. What is the price band of the Aeron Composite IPO?
The price band of the issue is INR 121-125 per share.
3. What is the size of the Aeron Composite IPO?
The offer size of Aeron Composite Limited is INR 56.10 crores, consisting of a fresh issue of 44,88,000 shares. The company seeks funds for CapEx for a new manufacturing unit and supports general corporate purposes.
4. What is the listing date of the Aeron Composite IPO?
The listing date of Aeron Composite Limited’s IPO is September 4, 2024.
