Aeroflex Industries Limited

About Aeroflex Industries Limited IPO

Incorporated in 1993, Aeroflex Industries Limited is a manufacturer and supplier of environment friendly hoses, hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators and related end fittings collectively known as flexible flow solutions. Its products are used in various industries such as fire sprinklers, aerospace and defense, semiconductors, robotics and automation and many others.  

Its manufacturing facility is located at Taloja in Navi Mumbai and its customers include  distributors, fabricators, MROs i.e. Maintenance Repair and Operations Companies, Original Equipment Manufacturers (OEMs) and companies which use flexible flow solutions as part of their direct operations. Its products are also exported to more than 80 countries including the USA and Europe. In FY23, it served a total of 723 customers, out of which 217 belonged to 51 countries outside India.

Between FY21 and FY23, the company’s revenue from operations grew at a CAGR of 36.4% and its profit grew at a CAGR of 123.9%. Moreover, the global market for SS flexible hose is estimated to grow at a CAGR of 7.5% to $38 billion between FY20 and FY27. 

And now, Aeroflex Industries Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings, fund capital expenditure and general corporate purposes. Its shares will be listed on the NSE and the BSE. 

Here are key details about the Aeroflex Industries IPO:

Financial snapshot

A quick look at Aeroflex Industries IPO’s strengths, risks and threats

Strengths 

1. Products cater to diverse industry segments.
2. Export oriented business model wherein exports accounted for 80%, 84% and 80% of the company’s revenue from operations in FY21, FY22 and FY23 respectively.
3. Primary manufacturer of flexible flow solutions in India with advanced manufacturing facility and R&D infrastructure with no matching competition. 
4. Operates in an industry with high entry and exit barriers. 
5. Witnessed a 55.5% CAGR growth in its EBITDA between FY21 and FY23.

Risks and threats

1. Exports its products to various countries which exposes it to significant import duties or restrictions of the relevant jurisdictions.
2. Requires large amounts of working capital accounting for over 45% of its revenue from operations in FY23.
3. Has experienced negative cash flows from investing and financing activities in FY21 and FY22.

Aeroflex Industries Limited IPO details

| Aeroflex Industries Limited IPO date

According to the offer document filed by the company with the SEBI, the Aeroflex Industries IPO’s opening date – in other words, the Aeroflex Industries IPO launch date – will be 22nd August 2023. The Aeroflex Industries IPO closing date is 24th August 2023. After this, investors will be updated about the allotment status on 29th August 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 31st August 2023. The Aeroflex Industries IPO listing date is 1st September 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Aeroflex Industries Limited IPO price band

The IPO is an offer for sale as well as a fresh issue. The Aeroflex Industries IPO price band has been set between ₹102 and ₹108 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Aeroflex Industries IPO listing price will be determined on 1st September 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Aeroflex Industries Limited IPO lot size 

The Aeroflex Industries IPO details have been declared. The Aeroflex Industries IPO lot size is set at 130 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Aeroflex Industries IPO issue size is approx ₹351 crore. 

How to pre-apply for the Aeroflex Industries Limited IPO?

You can pre-apply for the Aeroflex Industries IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Aeroflex Industries IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the  Aeroflex Industries IPO?

If you are interested in this investment opportunity but unsure how to apply for the  Aeroflex Industries  IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the  Aeroflex Industries  IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Aeroflex Industries  IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Aeroflex Industries IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Aeroflex Industries  IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your  Aeroflex Industries  IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the  Aeroflex Industries IPO

To apply for the  Aeroflex Industries IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Aeroflex Industries IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Aeroflex Industries IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.