Aeroflex IPO oversubscribed 4.3 times

CHENNAI: Aeroflex Industries Private limited’s initial public offering was subscribed 4.32 times a few hours after it hit the market on Tuesday.

According to data from BSE at 5 pm, 10,03,75,080 shares were bid for against 2,32,17,667 shares offered. This translates to 4.17 times more bids by retail investors. The Qualified Institutional Buyers (QIB) portion has been subscribed 1.07 times and non-institutional investors (NIIs) 8.96 times over issued shares.

The company’s public offering opened on Tuesday morning Tuesday (August 22) and the closing date is Thursday (August 24) for an issue size of Rs 351 crore. The price band has been fixed at Rs 102 to Rs 108 per share and the lot size is 130 shares and multiples thereof.

Retail investors can apply for up to 14 lots at the upper price band. The IPO entails a fresh issue of equity shares of Rs 162 crores and an offer of sale up to 1.75 crores equities by the promoter group and promoter shareholders.

The Mumbai-based company, backed by investors such as Ashish Kacholia and Jagdish Master, is involved in the manufacturing of metallic hose and flow solution products. It exports products to more than 80 countries.

The company has registered a revenue growth of 37% CAGR in the last three years.

The company intends to use the proceeds for repayment or prepayment of outstanding secured borrowings, including foreclosure charges, funding working capital requirements of the company and general corporate purposes and unidentified inorganic acquisitions.