Aeroflex Industries to launch IPO on August 21

Aeroflex Industries, a manufacturer of metallic flexible flow solution products, has chosen August 21 to launch its initial public offering (IPO). The company has not yet announced the price range.

The public offering consists of a fresh issuance of Rs 162 crore worth of shares by the company and an offer to sell Rs 1.75 crore worth of equity shares by the listed promoter Sat Industries.

The offer included a reservation of up to 5 million equity shares for the holding company's shareholders.

The offer will end on August 23, while bidding for the anchor book will occur for one day on August 18, a day prior to the issue's release.

The anchor book is comprised of qualified institutional investors who have reserved fifty percent of the IPO. The remaining 35 percent is reserved for retail investors.

The manufacturer of flexible hoses will use the proceeds from the new offering for debt repayment, working capital requirements, general corporate purposes, and unidentified inorganic acquisitions.

According to the draught red herring prospectus filed in March of this year, promoters SAT Industries owned 92.18 percent of Aeroflex's shares and Italica Global FZC held 6.52 percent. The remaining 1% is held by the general public.

Prior to filing the red herring prospectus with the RoC, Sat Industries sold 86.95 lakh equity shares to a handful of investors in May and June of this year, including Ashish Kacholia (2.03 percent of total paid-up equity), Bengal Finance and Investment (2.03 percent), Carnelian Structural Shift Fund (1.1 percent), Jagdish N Master (1.14 percent), and Rosy Blue (India 1 percent), at a price of Rs 87.56 per share. As a consequence, Sat Industries raised a total of Rs 76.13 billion.

The provider of flexible flow solutions, which earned more than 80 percent of its revenue from exports to over 80 countries, posted a 9.6 percent year-on-year increase in consolidated profit to Rs 30.15 crore for the fiscal year ending in March FY23, with revenue rising 11.9 percent to Rs 269.5 crore and EBITDA (earnings before interest, tax, depreciation, and amortisation) increasing 15.7 percent to Rs 54.03 crore. The EBITDA margin increased by 66 basis points year-over-year to 20.05 percent in the prior fiscal year.

The merchant banker for the offering is Pantomath Capital Advisors, while Link Intime India is the offer's registrar.

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