After receiving a strong response to its IPO, Aeroflex Industries is set to debut on the exchanges a day earlier than expected. The stock is expected to show a substantial gain of 60%, as indicated by a premium of Rs 65. This premium serves as an indicator of demand and investor sentiment in the unlisted market. It is important to note that grey market premiums can fluctuate rapidly.

The IPO of Aeroflex Industries witnessed robust demand across categories, with an overall subscription of 97 times. The qualified institutional buyer category was the most subscribed at 194.7 times, followed by non-institutional investors at 126.10 times. Reservation shareholders and retail investors also showed strong interest, with subscription levels of 28.51 times and 34.35 times, respectively.

Aeroflex Industries is a market leader in the field of metallic flexible flow solutions. The company offers a comprehensive range of products including corrugated stainless steel hoses and interlock flexible metal hoses. With a revenue compound annual growth rate (CAGR) of over 37% in the last three years, Aeroflex Industries has demonstrated its strong performance. The company operates at more than 4.85 times asset turnover, achieving over 20% EBITA margins and generating approximately 32% return on capital employed (ROCE).

The proceeds from the IPO will be used for various purposes. Rs 35 crore will be utilized for the prepayment of outstanding secured borrowings. Rs 84 crore will be allocated for the company’s working capital requirements. Additionally, a portion of the funds will be used for general corporate purposes and acquisitions to support inorganic growth.

For the financial year ending March 2023, Aeroflex Industries reported revenue from operations of Rs 269.4 crore and a profit of Rs 30.1 crore.

The IPO was managed by Pantomath Capital as the sole book running lead manager, while Link Intime India served as the registrar.