Aeroflex Industries Limited is a manufacturer and supplier of eco-friendly metallic flexible flow solution products that cater to domestic and international markets. With its products exported to over 80 countries, including prominent regions like the USA and Europe, Aeroflex has established a global presence in the industry. The company offers a comprehensive range of more than 1,700 Stock Keeping Units (SKUs) for its products, showcasing its commitment to meeting diverse customer needs.
Aeroflex Industries Limited IPO Details
Aeroflex Industries is a fresh issue and offer for sale worth ₹351 crore. The issue comprises 32,500,000 shares and is priced at ₹102 to ₹108 per share. Retail investors can bid for the Aeroflex Industries Limited IPO, which will open on August 22, 2023. Aeroflex Industries Limited’s IPO will list on BSE and NSE exchanges on September 1, 2023.
Aeroflex Industries Limited IPO Objectives
The objectives of Aeroflex Industries Limited's IPO are listed below:
- For the full or part repayment and/or prepayment of outstanding secured borrowings carried out by the company.
- To fund the working capital requirements of the company.
- General corporate purposes and unidentified inorganic acquisitions.
Noteworthy Highlights of Aeroflex Industries Ltd
- The company’s professional team has experience in production, R&D, quality control and sales and marketing. The knowledge and experience of their management and team of dedicated personnel provide Aeroflex Industries with a competitive advantage as they seek to grow their existing markets and enter new geographic markets.
- Aeroflex's extensive product pipeline, with over 55 products under development, indicates its commitment to innovation and adaptability to evolving customer requirements.
- During FY 2021, 2022, and 2023, the company’s exports constituted 80.90%, 84.53%, and 80.60% of the revenue from operations, respectively.
Peer Details
There are no listed companies in India that are engaged in a business similar to that of the company accordingly, it is not possible to provide an industry comparison in relation to the company in India. However, globally, there are listed peers such as Parker Hannifin Corporation and Senior PLC that are engaged in a business similar to that of the company.
Aeroflex Industries Company Financials
| Particulars | March 31, 2023 (₹ in lakh) | March 31, 2022 (₹ in lakh) |
|---|---|---|
| Revenue from Operations | 2,694.61 | 2,408.00 |
| Profit After Tax (PAT) | 223.08 | 275.06 |
| PAT Margin | 301.52 | 11.41% |
| EBITDA | 540.33 | 466.92 |
| EBITDA Margin | 20.05% | 19.39% |
| Debt-to-Equity Ratio | 0.39 | 0.45 |
| Return on capital employed | 31.91% | 36.29% |
Know before investing
Strengths
2The company’s revenue from operation increased by ~86%.1 from ₹1,447.74 lakh on March 31, 2021, to ₹2,694.61 lakh on March 31, 2023.
The company’s profit after tax grew by 5X from ₹60.11 lakh on March 31, 2021, to ₹301.52 lakh on March 31, 2023.
Risks
2The company is dependent and will continue to depend on our single manufacturing facility, and the company is subject to certain risks on that behalf. Any slowdown or shutdown in the manufacturing operations could have an unwanted effect on Aeroflex’s business.
The company does not hold any long-term agreements with raw materials suppliers. They are dependent on China for a significant portion of raw materials. Any delay or loss of raw materials can impact the revenue of the company adversely.
