Aeroflex Industries
Book Building issueMainboard₹351 Cr issue
+82.78%
Listing gain over issue price
Issue size
₹351 Cr
1 lot at cut-off
₹14,040
Lot size
130shares
Open
22 Aug 2023
Close
24 Aug 2023
Allotment
29 Aug 2023
Listing
31 Aug 2023
Listing performance
Issue price
₹108
Listed at
₹197.40
Listing-day close
₹163.25
Latest price
₹451.30
Close on 23 Oct 2026
Listing gain
+82.78%
Return since issue
+317.87%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Aug 2023 – 24 Aug 2023
- Listing date
- 31 Aug 2023
- Face value
- ₹2 per share
- Issue price
- ₹108 per share
- Lot size
- 130 shares
- Issue type
- Book Building issue
- Total issue size
- ₹351 Cr
- Market cap at offer price
- ₹1,397 Cr
- Promoter holding
- 91.09% → 66.99% pre-issue → post-issue
- ISIN
- INE024001021
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- Plot No.41, 42/13, 42/14 & 42/18, near Taloja MIDC, Village Chal, Behind IGPL, Panvel, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 95,99,980 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 130 shares per lot, in multiples, at ₹108
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 130 | ₹14,040 |
| Retail (max) | 14 | 1,820 | ₹1,96,560 |
| S-HNI (min) | 15 | 1,950 | ₹2,10,600 |
| S-HNI (max) | 71 | 9,230 | ₹9,96,840 |
| B-HNI (min) | 72 | 9,360 | ₹10,10,880 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
95,99,980
Anchor portion
₹104 Cr
at ₹108 per share
Valuation and performance
Valuation at offer price
₹108 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.64 | — |
| P/E (×) | 40.91 | — |
| Market cap | — | ₹1,397 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 26.43%
- ROCE
- 31.96%
- Debt / equity
- 0.39
- PAT margin
- 11.19%
- NAV per share
- ₹9.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aeroflex Industries
Aeroflex Industries Limited is a manufacturer and supplier of flexible flow solutions (metallic corrugated hoses and assemblies) catering to global and domestic markets. Originally incorporated as 'Suyog Intermediates Private Limited' in 1993, it was renamed 'Aeroflex Industries Private Limited' in 1998 and converted to a public limited company as 'Aeroflex Industries Limited' in 2006. The company exports its products to more than 80 countries, with exports constituting 80.60%, 84.53%, and 80.90% of revenue for Fiscals 2023, 2022, and 2021 respectively. The company operates from a single manufacturing facility in Taloja, Navi Mumbai, and serves a diverse customer base across steel, oil and gas, refineries, fire sprinklers, and chemical industries. It maintains over 1,700 product SKUs in its portfolio and had 723 customers as of March 31, 2023.
Company Analysis
from RHPAeroflex Industries manufactures and supplies environment-friendly metallic flexible flow solution products including braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, and related components for global industrial and commercial markets.
Aeroflex Industries Limited is a manufacturer and supplier of flexible flow solutions (metallic corrugated hoses and assemblies) catering to global and domestic markets. Originally incorporated as 'Suyog Intermediates Private Limited' in 1993, it was renamed 'Aeroflex Industries Private Limited' in 1998 and converted to a public limited company as 'Aeroflex Industries Limited' in 2006. The company exports its products to more than 80 countries, with exports constituting 80.60%, 84.53%, and 80.90% of revenue for Fiscals 2023, 2022, and 2021 respectively. The company operates from a single manufacturing facility in Taloja, Navi Mumbai, and serves a diverse customer base across steel, oil and gas, refineries, fire sprinklers, and chemical industries. It maintains over 1,700 product SKUs in its portfolio and had 723 customers as of March 31, 2023.
SteelOil and GasRefineriesFire Sprinklers & Fire FightingChemicals and PetrochemicalsMetals and MiningSolarHVACAerospaceGeneral Manufacturing
Objects of the Issue
- Full or part repayment and/or prepayment of certain outstanding secured borrowings (including foreclosure charges, if any) availed by our Company ₹320.00 million p.32
- Funding working capital requirements of our Company ₹840.00 million p.32
- General corporate purposes and unidentified inorganic acquisitions ₹155.27 million p.32
- Full or part repayment and/or prepayment of certain outstanding secured borrowings (including foreclosure charges, if any) availed by our Company ₹320.00 million p.102
- Funding working capital requirements of our Company ₹840.00 million p.102
- General corporate purposes and Unidentified Inorganic Acquisitions ₹155.27 million p.102
- Working capital requirements of the Company ₹540.00 million for Fiscal 2024 and ₹300.00 million for Fiscal 2025 p.108
- General corporate purposes and unidentified inorganic acquisitions ₹155.27 million (not exceeding 35% of the Net Proceeds, with general corporate purposes alone not exceeding 25% of the Net Proceeds) p.110
- Repayment of borrowings ₹350.00 million p.311
Issue Structure
- Total Issue
- ₹3,510.00 million (32,500,000 Equity Shares of face value ₹2/- each at ₹108/- per share)
- Fresh Issue
- ₹1,620.00 million (15,000,000 Equity Shares of face value ₹2/- each at ₹108/- per share)
- Offer for Sale
- ₹1,890.00 million (17,500,000 Equity Shares of face value ₹2/- each by Sat Industries Limited at ₹108/- per share)
- Price Band
- ₹102/- per Equity Share (Floor Price) to ₹108/- per Equity Share (Cap Price)
- Lot Size
- 130 Equity Shares and in multiples of 130 Equity Shares thereafter
- Face Value
- ₹2/- per Equity Share
Business Model
The company manufactures and supplies stainless steel flexible flow solution products including braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators and related end fittings. Revenue is derived from the sale of these products to customers in various industries globally and domestically. The company relies on purchase orders from customers without long-term contracts and does not enter into long-term agreements with most suppliers for raw materials.
Business Segments
Stainless steel corrugated flexible hoses with braiding for various industrial applications including controlled flow of air, liquid and solid substances
Hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, expansion bellows, compensators and related end fittings
Unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, and interlock hoses
Manufacture and sale of stainless steel hoses and hydraulic components for industrial applications
Flexible flow solutions used in blast furnaces, BOF furnaces, coke over & coke by-product transfer, boiler & generation units, high temperature lubricating lines, cooling water hoses, and vacuum degasser
Oil & gas industry uses Flexible Flow Solutions for transporting petroleum gas, natural gas, and biogas in pipeline connections, exploration and production
In oil refineries, flexible flow solutions are used to transfer hydrocarbons, steam and by-products & additives including hydrocarbon drain hoses, steam lines, lube oil & grease plant process lines, gas burner connections, process line connections
High-pressure hoses used in fire sprinkling systems to carry water or other fire retardants
Resistance to temperature & pressure variations, corrosion resistance, and absence of permeation makes flexible flow solutions a popular choice for process piping, steam lines, chlorine transfer, cryogenic transfer line, dry bulk pneumatic transfer, loading/unloading trucks/tanks
Flexible flow solutions used in metals and mining operations
Solar hoses are used for solar panel water connection and other heating items. They are used to transport hot and cold water between solar thermal panels and a hot water storage tank.
Various other applications
Manufacturing and sale of stainless steel flexible hoses with braiding and without braiding and assemblies for industrial applications
Manufacturing and supply of stainless steel corrugated flexible hoses, braidings and assemblies for controlled flow of various substances
Design, manufacturing and marketing of stainless steel braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, Inconel 625 & 825 hoses, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, EGR Tubes, expansion bellows, compensators and related end fittings.
SWOT Analysis
Strengths
- • Significant export presence across 80+ countries with established customer base(p.31)
- • Diverse product portfolio with 1,700+ SKUs across multiple hose and fitting categories(p.31)
- • Growing customer base serving 723 customers across 51 countries as of March 2023(p.31)
- • Strong revenue growth trajectory with 12% growth from FY2022 to FY2023(p.31)
- • Significant revenue concentration from top customers provides scale but indicates established market position(p.53)
- • Company has experienced strong growth trajectory over three-year period(p.58)
- • Export-oriented business model with established global presence(p.162)
- • Only listed peer in flexible flow solutions with advanced manufacturing facility(p.116)
- • Diversified customer base across multiple industries reduces concentration risk(p.160)
- • Strong R&D capability with significant product innovation pipeline(p.164)
- • Experienced management team with industry expertise(p.164)
- • Superior environmental and sustainability credentials(p.155)
- • Established global presence with dedicated export subsidiaries and distributors(p.167)
- • Long-standing customer relationships and diversified customer base(p.167)
- • Quality-focused operations with multiple international certifications(p.176)
- • Single, owned manufacturing facility with modern digital infrastructure(p.171)
- • Strong operational efficiency through digitization and Industry 4.0 initiatives(p.168)
- • Recognition as high-performing workplace with awards and certifications(p.175)
- • Established export presence across 80+ countries with 80.6% of FY2023 revenue from exports(p.280)
- • Diversified customer base across 51 countries with 217 export customers(p.280)
- • Strong financial performance with PAT margin of 11.19% and improving returns(p.294)
- • Improved capital efficiency with debt-to-equity ratio declining to 0.39 from 0.90(p.294)
- • Growing EBITDA margins improving from 15.43% to 20.05%(p.294)
- • Product diversification across hoses, assemblies, braiding and specialized end-use applications(p.280)
- • Strong revenue growth and profitability(p.299)
- • Expanding domestic market presence(p.299)
- • Growing customer base in both domestic and export markets(p.299)
- • Improved operational efficiency and cost management(p.302)
- • Inventory management improvements(p.300)
- • Reduced finance costs(p.301)
Weaknesses
- • Single manufacturing facility dependent on operations in Taloja, Navi Mumbai(p.43)
- • High working capital requirements consuming significant resources in inventories and receivables(p.30)
- • Reliance on limited number of top 5 suppliers for 74.49% of raw material purchases(p.51)
- • Promoter involved in pending indirect tax litigation with amount of ₹22.63 million at stake(p.35)
- • Product concentration risk with 59.76% revenue from stainless steel corrugated hoses alone(p.45)
- • Historical wilful defaulter status (though cleared in 2018 after settlement)(p.52)
- • Dependence on a small number of key customers creates revenue concentration risk(p.54)
- • Company was previously categorized as a wilful defaulter(p.55)
- • Unsecured loans can be recalled at any time by lenders(p.55)
- • Outstanding dues to creditors and micro, small and medium enterprises(p.57)
- • Inability to trace certain historical corporate records(p.60)
- • Dependence on key management personnel with limited succession planning visibility(p.56)
- • Restrictive financing covenants limit operational flexibility(p.57)
- • High dependency on top customers creates revenue concentration risk(p.162)
- • Single manufacturing facility creates operational concentration risk(p.163)
- • Moderate capacity utilization indicating underutilization of assets(p.161)
- • Significant debt burden relative to equity(p.161)
- • Single manufacturing facility concentration risk(p.171)
- • High dependence on raw material costs, particularly stainless steel(p.173)
- • No long-term contracts with raw material suppliers(p.173)
- • Reliance on third-party transportation and logistics providers without long-term arrangements(p.176)
- • Intellectual property vulnerability with pending trademark objection(p.176)
- • High dependence on five key suppliers accounting for 75.24% of raw material purchases(p.281)
- • Significant overdue MSME payables of ₹32.64 million without formal payment agreements(p.293)
- • Unhedged foreign exchange exposure creating earnings volatility(p.282)
- • No long-term raw material supply contracts, relying on individual purchase orders(p.281)
- • Heavy dependence on few key suppliers(p.315)
- • Significant customer concentration risk(p.315)
- • Increased borrowing levels(p.301)
- • Rising employee benefits expense(p.300)
- • Material cost pressure(p.300)
- • Historical wilful defaulter status of erstwhile management(p.320)
Opportunities
- • Expansion into new customer segments with 363.38 million revenue from new customers in FY2023(p.46)
- • Growing demand for stainless steel flexible flow solutions with favorable transition from rubber/PTFE alternatives(p.31)
- • Diversification into emerging sectors including Solar (₹17.14 million in FY2023)(p.50)
- • Strategic use of IPO proceeds for working capital expansion and debt repayment enabling growth(p.32)
- • Expansion into existing and new materials to grow market reach(p.108)
- • Growing export market with 80%+ of revenues from exports(p.108)
- • Unidentified inorganic acquisition opportunities aligned with company strategy(p.53)
- • Geographic and customer base expansion strategies(p.58)
- • Expanding addressable market in emerging industrial segments(p.165)
- • Significant global market growth potential(p.165)
- • Government support for Make-in-India and domestic manufacturing(p.135)
- • Rapid growth in electric vehicle and battery management applications(p.159)
- • Expansion of renewable energy infrastructure and solar applications(p.138)
- • Growing natural gas pipeline infrastructure presents new demand opportunity(p.139)
- • Expansion through 'China plus one' strategy and India's emerging manufacturing hub status(p.167)
- • Domestic market growth driven by government incentive schemes(p.168)
- • Planned international expansion through distribution centers and branch offices(p.167)
- • Movement up the value chain into high-end, complex applications(p.167)
- • Domestic business leverage opportunity with low existing penetration(p.167)
- • Expansion into emerging end-use sectors including Solar with new revenue stream initiated(p.281)
- • Growing domestic market opportunity with domestic sales increasing from ₹226.16 million to ₹433.45 million(p.295)
- • Expansion in high-growth sectors: Oil & Gas revenue grew from ₹200.19m to ₹497.39m; Refineries from ₹171.59m to ₹432.17m(p.281)
- • Increase in customer base from 538 to 723 total customers demonstrating market traction(p.280)
- • Significant growth potential in domestic market(p.299)
- • Expansion of export markets(p.299)
- • Capacity utilization improvement through capital expenditure(p.312)
- • International quality certifications and approvals enabling market access(p.327)
- • Use of IPO proceeds to reduce debt and strengthen balance sheet(p.311)
Threats
- • Significant export concentration with USA representing 28% of FY2023 revenue (763.21 million)(p.39)
- • Exposure to import duties and trade restrictions in key export markets(p.39)
- • Raw material sourcing concentration with China representing 43.48% of import purchases(p.41)
- • Currency exchange rate volatility with 79.44% of FY2023 revenue denominated in foreign currencies(p.40)
- • Reliance on purchase orders rather than long-term contracts exposing business to order volatility(p.45)
- • Highly fragmented competitive industry with both large global and small domestic competitors(p.47)
- • Dependency on customer end-use industries with cyclical demand patterns (Steel 21.96%, Oil & Gas 18.93%)(p.50)
- • Vulnerability to disruptions in power and utility supply affecting manufacturing operations(p.52)
- • Customer supply chain changes could reduce outsourcing of logistics operations(p.54)
- • Downturn in global markets affecting multinational customer operations(p.54)
- • Economic downturns can reduce customer spending on company products(p.54)
- • Labour intensive operations vulnerable to strikes and wage increases(p.55)
- • Failure to maintain growth could adversely impact business performance(p.58)
- • Regulatory and licensing approvals required for operations(p.58)
- • Intellectual property infringement risks and trademark objections(p.63)
- • COVID-19 and pandemic-related disruptions to operations and client business(p.63)
- • Interest rate fluctuations impact on debt servicing costs(p.62)
- • Global financial instability and volatility in emerging markets(p.65)
- • Changing regulatory environment and policy uncertainty(p.66)
- • Natural disasters, epidemics and terrorist attacks beyond company control(p.65)
- • Intense price competition from low-cost Chinese imports(p.151)
- • Increasing import penetration particularly from China(p.146)
- • Global economic slowdown impacting industrial capital expenditure(p.131)
- • Manufacturing sector contraction reducing demand from key industrial segments(p.127)
- • Reliance on imported raw materials exposes company to foreign currency and supply chain risks(p.109)
- • Cyclical nature of oil and gas sector affects demand volatility(p.137)
- • Shortage or non-availability of essential utilities affecting production(p.173)
- • Global competition from larger competitors with greater resources(p.177)
- • Competitive pressure on pricing and margins(p.177)
- • Foreign exchange and input price volatility(p.173)
- • High entry barriers in end-use industries limiting market access(p.177)
- • Raw material price volatility impacts gross margins, with COGS at 63.11% of revenue(p.280)
- • Foreign exchange fluctuation risk with 45.22% of raw materials imported and 80.6% of sales exported(p.282)
- • Revenue concentration risk across dependent end-use industries subject to economic cyclicality(p.281)
- • Product quality and warranty risks with potential recalls and damages claims(p.281)
- • Exposure to commodity price fluctuations(p.312)
- • Significant foreign exchange risk(p.313)
- • Interest rate risk on floating rate borrowings(p.313)
- • Regulatory and compliance risks(p.322)
- • Litigation risk related to promoter GST matters(p.317)
- • Intellectual property infringement risk(p.329)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sat Industries Limited | Sole Promoter | 84.57% | — |
| Sat Industries Limited | Promoter | 84.57% | 74.76% |
| Italica Global FZC | Promoter Group | 6.52% | 5.76% |
| Sat Industries Limited | Promoter | — | — |
| Sat Industries Limited | Promoter | 84.57% | — |
| Sat Industries Limited | Holding Company / Promoter | 92.18% | — |
| Italica Global FZC | Wholly-Owned Subsidiary of Holding Company | 6.52% | — |
| Sat Industries Limited | Promoter Selling Shareholder | — | — |
| SAT INDUSTRIES LIMITED | Promoter | — | — |
Leadership
Asad Daud · Chairman and Managing Director
Mustafa Abid Kachwala · Chief Financial Officer
Kinjal Kamlesh Shah · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Aeroflex Industries IPO FAQs
What is the lot size of Aeroflex Industries IPO?
The minimum lot size of Aeroflex Industries IPO is 130 shares. One lot costs ₹14,040 at the cut-off price.
When does Aeroflex Industries IPO open and close?
Aeroflex Industries IPO opened for subscription on 22 Aug 2023 and closed on 24 Aug 2023.
What is the listing date of Aeroflex Industries IPO?
Aeroflex Industries IPO listed on 31 Aug 2023.