Aimtron Electronics IPO opens strong with 50% premium listing on NSE SME platform

Aimtron Electronics Ltd, a leading SME that provides electronic design and manufacturing services, made a strong debut on the stock exchanges on June 6, with the shares listing at a nearly 50% premium on the NSE Emerge platform.

The Aimtron Electronics stock opened the session at ₹241, up 49.7% from its initial public offering (IPO) size of ₹161. Within minutes of trade, the share price hit the 5% upper circuit at ₹253.05.

As the lot size of Aimtron Electronics IPO was 800 shares, successful bidders who were allotted shares in the public issue would have been sitting on a profit of at least ₹64,000 (₹80 x 800) as soon as trading began in the stock.

The Aimtron Electronics IPO, which was open for subscription from May 30 to June 3, was oversubscribed nearly 100 times during the three-day bidding period.

The company received applications for over 35.62 crore shares, 99.31 times more than the 35.87 lakh shares on offer.

The non-institutional investors’ (NIIs) segment was subscribed the most at nearly 203 times. The quota reserved for retail investors received a subscription of nearly 72 times, while the qualified institutional buyers’ category was overbooked by nearly 70 times.

The ₹87.02-crore Aimtron Electronics IPO was a 100% book-built public issue, comprising an entirely fresh issuance of 54.05 lakh shares of face value of ₹10 each. The company had priced the IPO at ₹153 to ₹161 per share, with the minimum bid quantity of 800 shares.

Ahead of the launch of the IPO, Aimtron Electronics had also raised ₹24.73 crore by issuing 15.36 lakh shares to 11 anchor investors at a price of ₹161 apiece.

Aimtron Electronics had said that it planned to use the money for repayment in whole or part of outstanding borrowings and for funding the capital expenditure for installing additional plant and machinery, and to fund the working capital requirements of the company.

The book-running lead manager for the IPO was Hem Securities Ltd, while the registrar for the issue was Link Intime India Pvt. Ltd. The market maker for the Aimtron Electronics issue was Hem Finlease.

Founded in 2011, Aimtron Electronics provides products and solutions for Electronics System Design and Manufacturing (ESDM) services. The company’s manufacturing facilities are located in Vadodara (Gujarat) and Bengaluru (Karnataka).

The company’s revenue had increased multi-fold in FY 2022-23 to ₹72.4 crore compared with ₹26.9 crore in FY 2021-22. In FY 2023-24, for the nine-month period ended December 2023, revenue stood at ₹67.6 crore.

Profit after tax (PAT) for FY23 was ₹8.6 crore compared with a loss of ₹1.8 crore in FY22. For the first nine months of FY24, PAT stood at ₹9.76 crore.

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