Aeron Composites
SME₹56.10 Cr issue
+20.00%
Listing gain over issue price
Issue size
₹56.10 Cr
1 lot at cut-off
₹1,25,000
Lot size
1,000shares
Open
28 Aug 2024
Close
30 Aug 2024
Allotment
02 Sep 2024
Listing
04 Sep 2024
Listing performance
Issue price
₹125
Listed at
₹150
Listing-day close
₹157.50
Latest price
₹76.40
Close on 23 Oct 2026
Listing gain
+20.00%
Return since issue
-38.88%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Aug 2024 – 30 Aug 2024
- Listing date
- 04 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹125 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹56.10 Cr
- Market cap at offer price
- ₹213 Cr
- Promoter holding
- 100.00% → 73.63% pre-issue → post-issue
- ISIN
- INE0WL801011
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Saket Ind.Estate, Plot No.30/31, Sarkhej Bavla Highway, Village Moraiya, Changodar, Gujarat
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 | 12,14,000 | — | — |
| Market maker | 2,28,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹125
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,25,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,50,000 |
| S-HNI (max) | 8 | 8,000 | ₹10,00,000 |
| B-HNI (min) | 9 | 9,000 | ₹11,25,000 |
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
12,14,000
Anchor portion
₹15.18 Cr
at ₹125 per share
Valuation and performance
Valuation at offer price
₹125 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.28 | 6.04 |
| P/E (×) | 23.67 | 20.70 |
| Price to book (×) | 4.50 | — |
| Market cap | — | ₹213 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 27.09%
- ROCE
- 29.67%
- Debt / equity
- 0.35
- PAT margin
- 5.26%
- NAV per share
- ₹27.75
- Price to book
- 4.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aeron Composites
Incorporated in 2011 and converted from Private to Public Limited in 2024, Aeron Composite Limited is engaged in the business of manufacturing and supplying of Fiber Glass Reinforce Polymer Products (FRP products) including FRP Pultruded Products, FRP Moulded Gratings & FRP Rods tailored for various industrial applications. The company provides comprehensive solutions encompassing conceptual design, prototype development, testing, manufacturing, logistic support, installation and after sales service. It generates revenue from both domestic operations and international operations, serving over 800 customers across more than 30 countries globally. The company maintains an in-house R&D unit registered with the Department of Scientific & Industrial Research for developing new products and processes.
Company Analysis
from RHPAeron Composite Limited manufactures and supplies Fiber Glass Reinforced Polymer (FRP) products including pultruded products, moulded gratings, and rods for industrial applications across multiple industries.
Incorporated in 2011 and converted from Private to Public Limited in 2024, Aeron Composite Limited is engaged in the business of manufacturing and supplying of Fiber Glass Reinforce Polymer Products (FRP products) including FRP Pultruded Products, FRP Moulded Gratings & FRP Rods tailored for various industrial applications. The company provides comprehensive solutions encompassing conceptual design, prototype development, testing, manufacturing, logistic support, installation and after sales service. It generates revenue from both domestic operations and international operations, serving over 800 customers across more than 30 countries globally. The company maintains an in-house R&D unit registered with the Department of Scientific & Industrial Research for developing new products and processes.
Composites manufacturingFRP (Fiber Glass Reinforced Polymer) products
Objects of the Issue
- Funding the Capital Expenditure requirements towards setting up of an additional manufacturing unit ₹3903.60 lakhs p.23
- General Corporate Purpose [●] p.23
- Funding the Capital Expenditure requirements towards setting up of an additional manufacturing unit ₹3903.60 Lakhs p.84
- General Corporate Purpose p.84
- Setup of new integrated manufacturing unit in Mehsana district of Gujarat measuring 51,671 sq.mtr including construction of factory building, purchase and installation of machineries like Auto clave machine, Composite Rebar Machine, Carbon Fiber Pneumatic Caterpillar Pultrusion Machine, civil construction and installation of solar power plant ₹3903.60 Lakhs p.112
- Not disclosed in this document part
- Not specified in this section of the document
Issue Structure
- Total Issue
- up to 44,88,000 Equity Shares aggregating up to ₹ [●] lakhs
- Fresh Issue
- up to 44,88,000 Equity Shares aggregating up to ₹ [●] lakhs
- Offer for Sale
- Nil
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures FRP (Fiber Glass Reinforced Polymer) products and earns revenue from the sale of FRP pultruded products, FRP moulded gratings, and FRP rods. Revenue is generated from both domestic sales and export sales to international markets. The company provides a comprehensive solution including design, prototype development, testing, manufacturing, logistics, installation and after-sales service. Raw material consumption represents a significant portion of revenue from manufacturing activities.
Business Segments
Manufacture and supply of Fiber Reinforced Polymer (FRP) products including FRP Moulded Gratings, FRP Rod for Optic Fibre cable, and planned production of FRP Rebars, CFRP Core Rods, CFRP Planks for Wind Blades, CFRP Pultruded Profiles and Moulded Parts
Industrial structures, utility poles, railway structures, chemical processing plants, safety equipment like ladders and handrails used in various industrial applications for high strength-to-weight ratio, corrosion resistance, and durability
Industrial flooring in chemical processing plants, refineries, oil rigs, walkways, platforms, and recreational areas due to corrosion resistance, ease of maintenance, resistance to bacteria growth and ability to withstand harsh environments
Designed as strength members in optic fiber cables, providing essential support and protection to delicate optical fibers with lightweight, non-magnetic, and corrosion-resistant properties
Manufacturing and sale of Fiber Reinforced Polymer pultruded products, moulded gratings, and rods for domestic markets
Manufacturing and sale of Fiber Reinforced Polymer pultruded products, moulded gratings, and rods for international markets across more than 30 countries
Installation & erection charges, machinery rent income, and manpower supply
Pultruded FRP products for industrial applications
FRP Rods for various industrial uses
Moulded FRP gratings for industrial applications
SWOT Analysis
Strengths
- • Diversified geographic revenue base(p.20)
- • In-house R&D capability(p.20)
- • Strong revenue growth trajectory(p.39)
- • Comprehensive solution offerings(p.20)
- • Quality certifications and testing capability(p.44)
- • Diverse product portfolio in FRP manufacturing(p.86)
- • Global revenue diversification across multiple geographies(p.94)
- • Consistent focus on product quality(p.94)
- • Experienced senior management team(p.94)
- • Diversified revenue from 30+ countries across multiple geographies(p.109)
- • Strong track record of revenue and profit growth with improving margins(p.109)
- • Consistent focus on quality with ISO 9001:2015 accreditation and dedicated QA team(p.110)
- • Diverse product portfolio serving multiple industrial segments(p.112)
- • Experienced senior management with 39 years combined industry experience(p.112)
- • Recognized as Two Star Export House with AEO T2 status(p.109)
- • In-house R&D unit registered with Department of Scientific & Industrial Research(p.109)
- • Strong ISO 9001:2015 accreditation for FRP manufacturing and design scope(p.209)
- • Two-Star Export House status under Foreign Trade Policy 2023(p.209)
- • In-house R&D registered with Department of Scientific & Industrial Research(p.209)
- • Diversified customer base across 30+ countries and 800+ customers(p.209)
- • Broad industrial client base including government entities and major corporations(p.209)
- • Experienced promoter team with long industry experience (10-13 years)(p.209)
- • Strong revenue growth with 127% increase from FY 2020-21 to FY 2022-23(p.210)
- • Established manufacturing and supplier of specialized FRP products with diversified product portfolio(p.212)
- • Significant revenue growth with strong profitability trajectory across fiscal periods(p.213)
- • Export house recognition and international market presence(p.225)
- • In-house R&D capabilities recognized by government(p.226)
- • Multiple quality certifications and compliance standards achieved(p.226)
Weaknesses
- • High dependence on few key suppliers(p.34)
- • Geographic concentration of raw material sourcing(p.34)
- • Concentration of revenue from top customers(p.38)
- • Rented premises without ownership(p.41)
- • Significant trade receivables and bad debt history(p.39)
- • Litigation involving company and promoters(p.35)
- • Group company operating losses and negative net worth(p.43)
- • Excessive dependence on specific lenders(p.39)
- • High capital intensity with low capacity utilization(p.37)
- • Significant indebtedness exposure(p.45)
- • Directors' personal guarantees on substantial borrowings(p.46)
- • Dependence on third-party transportation with no definitive contracts(p.45)
- • Heavy reliance on contract labour with significant operational risk(p.46)
- • Manufacturing unit concentration in single location(p.45)
- • High dependence on a concentrated customer base in top 5 countries(p.110)
- • Manufacturing unit is currently rented rather than owned(p.122)
- • Relatively low capacity utilization at 61.32% as of February 29, 2024(p.120)
- • Company has no special tax benefits available under Income Tax Act or GST Act(p.98)
- • Dependence on exports with 56.16% of revenue from export sales for 11-month period ended Feb 2024(p.209)
- • Significant debt levels with Debt-to-Equity ratio of 0.35 as at 29.02.2024(p.199)
- • High inventory levels comprising 29% of current assets as at 29.02.2024(p.164)
- • Trade receivables concentration with 72 days turnover ratio(p.201)
- • Family-based promoter structure with concentration of control(p.151)
- • High customer concentration risk in revenue generation(p.211)
- • Bad debts impacting profit margins(p.214)
- • Significant outstanding litigation involving customer disputes(p.220)
- • Material outstanding creditor obligations(p.221)
- • Existing debt obligations requiring service(p.211)
Opportunities
- • Expansion of addressable market(p.20)
- • New manufacturing unit expansion(p.35)
- • New product line development(p.36)
- • Increased global demand for high-performance materials(p.20)
- • Capacity expansion to serve growing customer demand(p.86)
- • New product lines in high-growth segments (FRP Rebars, CFRP products)(p.86)
- • Cost optimization through renewable energy adoption(p.88)
- • Expansion into new export markets(p.46)
- • Setup of new integrated manufacturing unit to enhance operational efficiency and increase production capacity(p.112)
- • Expansion into new geographies and untouched regions domestically and globally(p.112)
- • Continued investment in R&D capabilities and new product development(p.112)
- • Diversification into FRP Rebar and Carbon Fiber Reinforced Polymer products(p.112)
- • Growing global composites market projected at USD 112.8 billion by 2025 at CAGR of 8.8%(p.107)
- • Indian composites market expected to reach USD 1.9 billion by 2026 with CAGR of 16.3%(p.107)
- • Expansion into renewable energy and emerging industrial segments(p.209)
- • Diversification of FRP product portfolio across multiple applications(p.209)
- • Capacity expansion with new 26,320 sq. mtr. manufacturing facility(p.209)
- • International market penetration through export channels to 30+ countries(p.209)
- • Expand pultruded product sales which showed strong growth trajectory(p.213)
- • Growth in FRP Rods segment(p.213)
- • Expand FRP Moulded Gratings product line(p.215)
- • Leverage export house status for international market penetration(p.225)
- • Capitalize on government R&D support and recognition programs(p.226)
Threats
- • Foreign exchange volatility from international operations(p.33)
- • Raw material price volatility and supply disruptions(p.33)
- • Restrictions on import of raw materials(p.33)
- • Competition from organized and unorganized players(p.44)
- • Regulatory and environmental compliance changes(p.45)
- • Technological obsolescence of equipment(p.39)
- • Vulnerability to global economic instability and financial crises(p.50)
- • Exposure to Indian economic slowdown and inflation(p.50)
- • Dependence on customers with operations outside India(p.51)
- • Regulatory and compliance uncertainties(p.51)
- • Risk of adverse product publicity impacting demand(p.44)
- • Natural disasters and geopolitical instability affecting operations(p.51)
- • High volatility in global commodity prices affecting raw material costs(p.100)
- • Competitive pressure from large and small manufacturers in the composite industry(p.120)
- • Global economic slowdown and weak growth projected at 3.1% by 2029, lowest in decades(p.100)
- • Higher composite material costs compared to alternative plastic materials restricting market adoption(p.107)
- • Dependence on imports for raw materials subject to foreign exchange fluctuations and trade restrictions(p.121)
- • Geopolitical fragmentation impacting global trade patterns and export markets(p.101)
- • Cyclical demand in oil, gas and refineries sectors vulnerable to commodity price volatility(p.209)
- • Foreign exchange risk from significant export revenue exposure(p.209)
- • Competition from established manufacturers with greater scale and resources(p.209)
- • Raw material price volatility impacting cost of goods sold(p.193)
- • Dependency on limited key management personnel with 03 years experience for MD(p.209)
- • Regulatory and compliance changes affecting operations(p.211)
- • Freight and logistics cost volatility(p.213)
- • Macroeconomic and financial market risks(p.211)
- • Failure to comply with client and regulatory certifications(p.211)
- • Environmental and uninsured loss risks(p.211)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dilipkumar Ratilal Patel | Promoter | 3.83% | 2.82% |
| Chirag Chandulal Patel | Promoter | 3.63% | 2.67% |
| Pankaj Shantilal Dadhaniya | Promoter | 11.13% | 8.20% |
| Ravi Pankajkumar Patel | Promoter | 4.25% | 3.13% |
| A. International Private Limited | Promoter | 27.39% | 20.16% |
| Dilipkumar Ratilal Patel | Promoter | 3.83% | 2.82% |
| Chirag Chandulal Patel | Promoter | 3.63% | 2.68% |
| Pankaj Shantilal Dadhaniya | Promoter | 11.13% | 8.20% |
| Ravi Pankajkumar Patel | Promoter | 4.25% | 3.13% |
| A. International Private Limited | Promoter | 27.39% | 20.16% |
| Dilipkumar Ratilal Patel | Promoter | 3.83% | — |
| Chirag Chandulal Patel | Promoter | 3.63% | — |
| Pankaj Shantilal Dadhaniya | Promoter | 11.13% | — |
| Ravi Pankajkumar Patel | Promoter | 4.25% | — |
| Dilipkumar Ratilal Patel | Promoter | 3.83% | — |
| Chirag Chandulal Patel | Promoter | 3.63% | — |
| Pankaj Shantilal Dadhaniya | Promoter | 11.13% | — |
| Ravi Pankajkumar Patel | Promoter | 4.25% | — |
| A. International Private Limited | Promoter Group | 27.39% | — |
| Not disclosed in this section | Promoter | — | — |
Leadership
Chirag Chandulal Patel · Managing Director
Dilipkumar Ratilal Patel · Chairman & Non-Executive Director
Ravi Pankajkumar Patel · Whole Time Director
Pankaj Shantilal Dadhaniya · Whole Time Director
Sanjaykumar Jyestharam Oza · Chief Financial Officer
Vijay Mahendrabhai Dakshini · Company Secretary & 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.
Aeron Composites IPO FAQs
What is the lot size of Aeron Composites IPO?
The minimum lot size of Aeron Composites IPO is 1,000 shares. One lot costs ₹1,25,000 at the cut-off price.
When does Aeron Composites IPO open and close?
Aeron Composites IPO opened for subscription on 28 Aug 2024 and closed on 30 Aug 2024.
What is the listing date of Aeron Composites IPO?
Aeron Composites IPO listed on 04 Sep 2024.