Stainless steel flexible hose manufacturer Aeroflex Industries Ltd on Monday said it has collected close to Rs 104 crore from anchor investors ahead of its initial public offering (IPO).
The company has decided to allocate 95.99 lakh equity shares to 15 funds at Rs 108 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website. Societe Generale, Winro Commercial India Fund Ltd, Universal Sompo General Insurance Company Ltd, Nippon India Mutual Fund, WhiteOak Mutual Fund, Bank of India Mutual Fund and Invesco Mutual Fund are among the anchor investors.
The IPO consists of a fresh issue of equity shares worth up to Rs 162 crore and an Offer for Sale (OFS) of up to 1.75 crore equity shares by promoter Sat Industries. At present, promoter and promoter group members own over 91 per cent stake in the company. The maiden public issue, a price band of Rs 102-108 a share, will open for subscription on August 22 and conclude on August 24. The company through its IPO will fetch Rs 340.5 crore and Rs 351 crore at the lower and upper end of the price band, respectively.
Proceeds from the fresh issue will be utilised for payment of a debt, and funding working capital requirements, and a certain amount will be used for general corporate purposes and acquisitions for inorganic growth. Investors can bid for a minimum of 130 equity shares and in multiples of 130 equity shares thereafter. Mumbai-based Aeroflex is a manufacturer and supplier of metallic flexible flow solution products, catering to global markets. It exports its products to more than 80 countries, including Europe and the US, and generates 80 per cent of its revenue from exports.
For fiscal 2023, Aeroflex generated consolidated revenue from operations of Rs 269.4 crore, and profit after tax (PAT) was Rs 30.1 crore. Pantomath Capital Advisors is the sole book-running lead manager to the issue. The company’s equity shares are proposed to be listed on the BSE and NSE.