Aeroflex Industries Gets SEBI Nod To Raise Rs. 350 Cr Via IPO

The capital markets watchdog, Securities and Exchange Board of India (SEBI), has given Aeroflex Industries Limited, located in Mumbai, its final approval to raise funds through an initial public offering (IPO). On March 31, 2023, the company submitted preliminary IPO documents to Sebi.

The company aims to raise about Rs. 350 crores through an initial public offering (IPO) and has submitted its draft red herring prospectus (DRHP) to SEBI. A fresh issuance of equity shares up to the value of Rs. 160 crores and an offer-for-sale (OFS) of up to 17.5 million equity shares by the promoters, selling shareholders and promoter group make up the offer, which has a face value of Rs. 2 per equity share.

According to the DRHP, a portion of the proceeds from the fresh issue will be used for general corporate purposes and acquisitions for inorganic growth. Of the total proceeds, Rs. 35 crores will be used to prepay the Company's outstanding secured borrowings.

To eligible shareholders of its Promoter, Sat Industries Limited, the Company may offer a discount after consulting with the BRLM.

The total revenue from operations for Aeroflex's Fiscal 2022 was Rs. 240.8 crores. EBITDA for the company was Rs. 46.7 crores, with an EBITDA margin of 19.4%. With a PAT margin of 11.4%, the company's profit after tax for the fiscal year 2022 was Rs. 27.5 crores. For Fiscal 2022, the company's Return on Equity (RoE) and Return on Capital Employed (RoCE) were respectively 31.9% and 36.3%. As of January 31, 2023, the company has a debt-to-equity ratio of 0.45.

The sole book-running lead manager of the issue is Pantomath Capital Advisors Private Limited. The company's equity shares are proposed to be listed on the BSE and NSE.

Global markets are served by Mumbai-based Aeroflex Industries Limited, a provider of environmentally friendly Metallic Flexible Flow Solution products. More than 80% of Aeroflex's revenue comes from exports, which it provides to more than 80 nations, including the USA, Europe, and others. Taloja, Navi Mumbai is home to the company's production facilities and NABL-accredited R&D lab. Sat Industries Limited, which is also listed on the BSE and NSE, is the parent company of Aeroflex. The company has more than 1,700 SKUs (Stock Keeping Units) under which it sells its products. The company has manufactured bronze-based products as well, and as of now, it has more than 55 products in its backlog.