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The ₹351-crore initial public offering of Aeroflex Industries will close for public subscription today. The public offer has received an overwhelming response from all categories of investors. It was subscribed 21.10 times at the end of Day 2 of subscription The public issue comes at a price band ₹102-108, and investors can bid for a minimum of 130 equity shares. The issue received bids for 48.98 crore shares, against the 2.32 crore shares on offer.
The IPO has reserved not more than 50 per cent of the shares for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional investors (NII), and not less than 35 per cent for retail investors.
The non-institutional investors’ portion was the most subscribed at 46.42 times, followed by retail at 17.78 times. The Qualified Institutional Buyer portion was subscribed 8.05 times, while the quota for Reservation Portion Shareholderswas subscribed 11.46 times.
The IPO consists of a fresh issue worth ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore shares by promoter Sat Industries.
As part of the IPO process, Aeroflex Industries, on Monday, raised Rs 104 crore from anchor investors by allocating 95.99 lakh equity shares to 15 funds at Rs 108 apiece. Among them were, Societe Generale, Winro Commercial India Fund Ltd., Universal Sompo General Insurance Company Ltd, Nippon India Mutual Fund, WhiteOak Mutual Fund, Bank of India Mutual Fund, and Invesco Mutual Fund.
Also read: Aeroflex IPO: Key things to know and should you subscribe?
Pre-IPO investors
Marquee investors such as Ashish Kacholia, Jagdish Master and the Vikas Khemani-led Carnelian Fund and other investors bought approximately 7 per cent stake in Aeroflex Industries in a pre-IPO placement.
The Mumbai-based Aeroflex is a manufacturer and supplier of metallic flexible flow solution products. It exports its products to more than 80 countries, including the US and countries in Europe; 80 per cent of its revenue comes from exports.
Proceeds from the fresh issue will be used to pay of debt, and to fund working capital requirements. A certain amount will be used for general corporate purposes and acquisitions for inorganic growth.
Pantomath Capital Advisors is the sole book-running lead manager to the issue. The company’s equity shares are proposed to be listed on the BSE and NSE.
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