Aeroflex filed its preliminary IPO papers with the regulator in March of this year. Prior to the IPO, prominent investors, including Ashish Kacholia and Jagdish Master, acquired stakes in the company.
Other investors who have taken a slice of the company include Vikas Khemani, Rosy Blue India, VPK Global Ventures Fund, Samedh Trinity Partners, Shyam Agarwal, Mitul Prafulbhai Mehta, and Rajnik Savaliya.
Aeroflex is a subsidiary of the listed company, Sat Industries.
The company exports Make-in-India metallic flexible flow solutions to over 85 countries, with exports accounting for more than 80% of its total revenue.
Aeroflex’s metallic flexible flow solutions, which replace rubber and polymer pipes and tubes, have a multi-purpose application. They cater to a variety of industry segments, including fire-fighting, aviation, and space.
For the past two years, Aeroflex has a track record of dividend distribution and has a well-defined dividend policy of distributing within a range of 7-15%, as disclosed in the offer document.The IPO, with a face value of Rs 2 per equity share, comprises a fresh issue of equity shares worth up to Rs 160 crore, and an offer-for-sale (OFS) of up to 17.5 million equity shares by the promoter selling shareholders.
In consultation with the book running lead manager, the company may offer a discount to the eligible shareholders of its promoter, Sat Industries.
According to the draft papers, the proceeds from the issue will be utilised to prepay up to Rs 35 crore of the company’s outstanding secured borrowings, fund its working capital requirements with Rs 84 crore, and set aside a portion for general corporate purposes and acquisitions for inorganic growth.
In the fiscal year 2022, Aeroflex generated a consolidated revenue from operations of Rs 240.8 crore. The company had an EBITDA of Rs 46.7 crore and an EBITDA margin of 19.4%.
Pantomath Capital is the sole book running lead manager to the IPO, and Link Intime India is the registrar of the offer. The company’s equity shares are proposed to be listed on the BSE and NSE.