The initial public offering (IPO) of Aeroflex Industries Ltd received a strong response from investors on the first day of bidding (Day 1). All parts of the initial stock sale were fully booked within the first three hours. The Rs 351 IPO, opened today for registration, will end on August 24. The IPO price range has been fixed at Rs 102-108 per share. Investors can bid for a minimum of 130 equity shares and then multiples of 130 equity shares.
As of 2:33 p.m. Tuesday, the issue had been subscribed 4.44 times. BSE data shows that Aeroflex’s IPO received 10,31,98,550 bids against an issue size of 2,32,17,667 shares. The category exclusively for non-institutional investors (NII) was booked 8.32 times, and retail retail investors (RII) received 4.75 times of total bookings. The holdings for qualified institutional buyers (QIBs) have been registered 1.05 times and the quota for reserved share shareholders has been set 1.95 times.
Prior to the IPO, the Mumbai-based company said it had raised Rs 103.68 crore from fixed investors. Aeroflex informed the stock market that it has allocated 95,99,980 shares at Rs 108 per share to anchor investors.
Of the total anchor books, 55% of allocations have been made to four domestic mutual funds through a total of nine schemes amounting to Rs 57 crore, Aeroflex said. Nippon Mutual Fund has received the largest allocation, about 20% of total fixed book size, while others such as Invesco Mutual Fund, White Oak Mutual Fund, BOI Mutual Fund, Winro Commercial and Societe Generale also follows this package.
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Prior to that, big investors like Ashish Kacholia, Jagdish Master, Vikas Khemani-led Carnelian Fund and others bought about 7% stake in Aeroflex’s pre-IPO round.
Brokers see
The majority of brokers are active in this regard. “The company has a ‘Made in India’ model and there is no other listed company in the industry with advanced manufacturing facilities and R&D infrastructure. We believe this offering is priced appropriately. and recommend a ‘Long Term Subscription’ rating for the IPO,” stated Anand Rathi Shares & Stock Brokers.
SBI Securities and AUM Capital also give a ‘Long Term Subscription’ rating.
Gray market price (GMP)
On the black market, Aeroflex stock was last traded at nearly 63% above its issue price of Rs 108 (the more premium grade). The stock is likely to be listed on September 1, 2023.
Pantomath Capital Advisors is the sole manager of the matter, while Link Intime India is appointed as the registrar.
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Aeroflex Industries, formerly known as Suyog Intermediates, is a manufacturer of eco-friendly Metal Flexible Flow Solutions products serving the global market. The company has grown revenue by over 37% CAGR over the past 3 years, achieved 20% EBITA margins and generated approximately 32% ROCE. Its manufacturing facility is located in Taloja, Navi Mumbai, Maharashtra.
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