MUMBAI, AUGUST 16^th, 2023 (GPN): The Mumbai-based stainless steel flexible hose manufacturer, Aeroflex Industries Limited (‘Aeroflex” or “the Company”) which was previously known as Suyog Intermediates Private Limited, has fixed the price band of the book-build issue at Rs 102 to Rs 108 per share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Tuesday, August 22, 2023, for subscription and closes on Thursday, August 24, 2023. Investors can bid for a minimum of 130 Equity Shares and in multiples of 130 Equity Shares thereafter.

Aeroflex IPO is backed by marquee investor Ashish Kacholia, will open for subscription on August 22.

The Public Issue of face value of Rs. 2 per Equity Share comprises of a fresh issue of Rs 162 crore and an Offer for Sale (OFS) up to 17.5 million shares by Promoter and Promoter Group. The company, in consultation with the BRLM, may give a discount to the eligible shareholders of its promoter i.e. Sat Industries.

The Company through its IPO will fetch Rs 340.5 crore – Rs 351 crore at the lower and upper end of the price band.

Aeroflex exports its products to more than 80 countries including Europe, USA and others, generating more than 80% of its revenue from exports. Aeroflex’s solutions find application in a wide spectrum of industries for controlled flow of all forms of substances including air, liquid and solid. The Company’s manufacturing facility and NABL accredited R&D lab are situated at Taloja, Navi Mumbai.

Flexible flow solutions play a critical role in transfer of substances (air, liquid and solid) in any industrial or commercial ecosystem, connecting the origin and end points of various processes. The Company offers its products under more than 1,700 SKUs (Stock Keeping Units). The Company has recently developed products made of bronze as well and has a pipeline of more than 55 products as on date. Given the complexity of the research and product development, varying product applications, necessary technical expertise, precision involved, lengthy and stringent customer qualification processes, Aeroflex’s business model poses significant entry barriers (to new entrants) as well as exit barriers (to existing customers).

Aeroflex earned more than 80 percent of business through exports to over 80 countries, has recorded a 9.6 percent on-year growth in consolidated profit at Rs 30.15 crore for the financial year ended March 2023. Revenue during the same period climbed 11.9 percent to Rs 269.5 crore and EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 15.7 percent to Rs 54.03 crore.

For Fiscal 2023, Aeroflex generated consolidated revenue from operations of Rs. 269.4 crores. The Company had EBITDA of Rs. 54 crores and EBITDA margin of 20.05%. The Company’s profit after tax for Fiscal 2023 was Rs. 30.1 crores with PAT margin of 11.19%. The Company’s Return on Equity (RoE) and Return on Capital Employed (RoCE) was 26.43% and 31.91% for Fiscal 2023.

Pantomath Capital Advisors Private Limited is the sole book running lead manager and Link Intime India Private Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.

Issue Size of the IPO based on the upper and lower end of the price band.

	Fresh	OFS (17,500,000 equity shares)	Total
Lower Band (@Rs 102)	Rs 162 crore	Rs 178.5 crore	Rs 340.5 crore
Upper Band (@Rs 108)	Rs 162 crore	Rs 189 crore	Rs 351 crore

RHP: https://www.sebi.gov.in/filings/public-issues/aug-2023/aeroflex-industries-ltd-rhp_75303.html

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