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  4. Aeroflex IPO subscribed 97x with aggressive bids from institutional investors

Aeroflex IPO subscribed 97x with aggressive bids from institutional investors

Aeroflex IPO subscribed 97x with aggressive bids from institutional investors
  • The IPO was subscribed 97x times on the third and last day of the issue.
  • The QIB portion was subscribed 194 times while the NII portion was subscribed 126x.
The initial public offer (IPO) of Mumbai-based Aeroflex Industries was subscribed 97 times over the shares on offer on the last day of the issue.

Qualified institutional buyers (QIB) bid aggressively as this portion was subscribed 194 times. Non-institutional investor portion was subscribed 126 times. The retail portion was subscribed 34 times the shares on offer.

The company had also raised ₹103.68 crore from anchor investors like Societe Generale, Nippon Mutual Fund, Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund, and more.

Category

No of times subscribed

QIBs

194.73

Non institutional investors

126.10

Retail

34.35

Total

97.07

Source: BSE

The IPO opened for the public on August 22 and closed on August 24. It has fixed a price band of ₹102-108 per equity share.

The ₹351 crore initial public offer (IPO) is a combination of fresh issue and offer-for-sale (OFS) with promoters and other shareholders offloading stake via the share sale.

The net proceeds of the fresh issue will be utilised towards full or part repayment and/or prepayment of outstanding borrowings; funding working capital requirements and for general corporate purposes and unidentified inorganic acquisitions.

About the company

The company manufactures and supplies environmentally-friendly metallic flexible flow solution products to global as well as domestic markets from a single manufacturing facility in Taloja, Navi Mumbai.

The flexible flow solutions include braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes and more.

These solutions are used for transfer of substances be it air, liquid and solid — in any industrial or commercial ecosystem. They connect the origin and end points of various processes. For example, flow solution products are required in fire sprinklers, gas supply, fueling and hydraulics in aircrafts.

No listed peers

The company has no listed peers in India, but the segment it operates in is fragmented and diversified. It can face competition from other large and small global and domestic players.

“Our company is not a wilful defaulter however, we went into settlement process and our company was categorised as wilful defaulter in the past, before the takeover of our Company by the present management,” the company said listing the risk factors.

This is in relation to default of payment in 2011 with respect to consortium finance availed from State Bank of India, Axis Bank and others. Subsequently, in 2018, it was taken over by the present promoter under the settlement process, and all the outstanding amounts were paid off by them.

“Our company has no dues payable to any lender forming part of the consortium including BoI and we have no dues certificate obtained from BoI and other lenders forming part of the consortium,” the company said.

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