Airfloa Rail Technology
Book Building issueSMEBSE₹91.10 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹91.10 Cr
1 lot at cut-off
₹1,40,000
Lot size
1,000shares
Open
11 Sep 2025
Close
15 Sep 2025
Allotment
16 Sep 2025
Listing
18 Sep 2025
Listing performance
Issue price
₹140
Listed at
₹266
Listing-day close
₹279.30
Latest price
₹456.65
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+226.18%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Sep 2025 – 15 Sep 2025
- Listing date
- 18 Sep 2025
- Face value
- ₹1 per share
- Issue price
- ₹140 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹91.10 Cr
- Market cap at offer price
- ₹336 Cr
- Promoter holding
- 74.40% → 54.20% pre-issue → post-issue
- ISIN
- INE0XBS01012
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- No 9 Chelliamman, Koilstreet Keelkttala, Tamil Nadu
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 | 18,52,000 | — | — |
| Market maker | 3,26,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹140
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 8,000 | ₹11,20,000 |
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
18,52,000
Anchor portion
₹25.93 Cr
at ₹140 per share
Valuation and performance
Valuation at offer price
₹140 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 14.63 | 10.66 |
| P/E (×) | 9.57 | 13.13 |
| Price to book (×) | 2.19 | — |
| Market cap | — | ₹336 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.06%
- ROCE
- 26.28%
- Debt / equity
- 0.54
- PAT margin
- 13.28%
- EBITDA margin
- 24.61%
- NAV per share
- ₹63.81
- Price to book
- 2.19
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Airfloa Rail Technology
Airfloa Rail Technology Limited, incorporated in 1998 as Air Flow Equipments (India) Private Limited and subsequently renamed, is engaged in the manufacturing of components used in rolling stock for Indian Railways through entities like Integral Coach Factory (ICF) and other coach factories. Beyond railway components, the company carries out turnkey interior furnishing projects for Indian Railways and manufactures intricate, highly engineered components for the aerospace and defence sectors. The company has executed projects for Sri Lankan DEMU and Mainline Export Coaches, Agra-Kanpur Metro Coach, RRTS Coach, Vistadome Coach, and Train-18 Vande Bharat Express. It serves Indian Railways, other rail factories, and global rolling stock OEMs.
Company Analysis
from RHPAirfloa Rail Technology Limited manufactures rolling stock components and provides turnkey interior furnishing for Indian Railways and aerospace & defence sectors.
Airfloa Rail Technology Limited, incorporated in 1998 as Air Flow Equipments (India) Private Limited and subsequently renamed, is engaged in the manufacturing of components used in rolling stock for Indian Railways through entities like Integral Coach Factory (ICF) and other coach factories. Beyond railway components, the company carries out turnkey interior furnishing projects for Indian Railways and manufactures intricate, highly engineered components for the aerospace and defence sectors. The company has executed projects for Sri Lankan DEMU and Mainline Export Coaches, Agra-Kanpur Metro Coach, RRTS Coach, Vistadome Coach, and Train-18 Vande Bharat Express. It serves Indian Railways, other rail factories, and global rolling stock OEMs.
Railway ManufacturingAerospace and DefenceRolling Stock ManufacturingInterior Furnishing
Objects of the Issue
- Capital expenditure towards purchase of Machinery and equipment ₹1,367.78 lakhs p.24
- Repayment of a portion of certain outstanding borrowing availed by our company ₹600.00 lakhs p.24
- Funding of the working capital requirement of our Company ₹5,927.02 lakhs p.24
- General corporate purposes p.24
- Capital expenditure towards purchase of machinery and equipment ₹1,367.78 lakhs p.92
- Repayment of a portion of certain outstanding borrowing availed by our company ₹600.00 lakhs p.96
- Funding working capital requirements ₹5,927.02 lakhs p.97
- General corporate purposes p.99
- Funding capex for purchase of new machinery and equipment for capacity expansion ₹1,367.78 lakhs p.133
- Repayment of borrowings ₹600.00 lakhs p.134
- General corporate purposes
- —
- Repayment/prepayment of borrowings p.309
Issue Structure
- Total Issue
- Upto 65,07,000 Equity Shares aggregating up to ₹ [●] Lakhs
- Fresh Issue
- Upto 65,07,000 Equity Shares of face value of ₹ 10 each
- Offer for Sale
- NIL
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹ 10 each
Business Model
The company earns revenue through manufacturing and supply of rolling stock components to Indian Railways and other rail entities, execution of turnkey interior furnishing projects for railways, and manufacturing of aerospace and defence components. For Fiscal 2025, revenue from Indian Railways represented 55.70% of total revenue (₹10,715.64 lakhs out of ₹19,238.70 lakhs), indicating significant dependence on government contracts awarded through competitive bidding.
Business Segments
Manufacturing of components used in rolling stock for Indian Railways and carrying out turnkey interior furnishing projects for Indian Railways
Manufacturing of intricate, highly engineered, and vital components for the aerospace and defence sectors
Design, fabrication, assembly, and testing of passenger coaches, wagons, and locomotives for Indian Railways
Manufacturing of rail car body components (exterior sidewalls, end walls, roof, nose cone), rail interior components (doors, windows, seats, luggage racks, partitions, handrails, flooring, decorative panels in composite, aluminium, and stainless steel materials), HVAC systems, LED lighting systems, and turnkey interior furnishing projects for Indian Railways (ICF, MCF, RCF).
Manufacturing of precision engineered components for aerospace including ground simulators for HAL, precision machining tools, and body manufacturing for defence including artillery tanks and body armors.
Manufacturing, processing, assembling, developing and designing of railway rolling stocks, passenger rail coaches, their discrete components, rail wagons, locomotives and their discrete components
Manufacturing of cockpit simulators, structural components, engineering assemblies, and body manufacturing for artillery; technology development and integration activities for aerospace and defence
Manufacturing, processing, assembling, developing and designing of railway rolling stocks, passenger rail coaches, rail wagons, locomotives and their discrete components
Manufacturing and supply of aeronautical and defence products
SWOT Analysis
Strengths
- • Established supplier to Indian Railways with significant historical revenue contribution(p.34)
- • Strong order book position from Indian Railways(p.34)
- • Track record of successful project execution across diverse railway segments(p.23)
- • Profitable operations with consistent revenue growth(p.25)
- • Healthy capacity utilization levels(p.43)
- • Growing order book and project pipeline(p.99)
- • Modernization through new machinery and equipment acquisition(p.92)
- • Improved debt-to-equity position expected post-IPO(p.96)
- • Experienced promoters with deep domain knowledge spanning over 20 years in railway OEM sector(p.132)
- • In-house manufacturing capabilities with advanced machinery and equipment(p.132)
- • Long-standing customer base with strong relationships and repeat business(p.102)
- • Established track record of successfully completed projects(p.102)
- • Strong order book exceeding ₹37,588.65 lakhs providing revenue stability(p.133)
- • Proven turnkey solutions provider capability managing entire project lifecycles(p.131)
- • Management team with established track record(p.102)
- • Experienced promoter leadership with multi-decade track record in operations(p.165)
- • Established manufacturing capability with diversified asset base(p.233)
- • Strong financial position with healthy profitability and positive cash generation(p.231)
- • Diversified customer base generating substantial revenue(p.231)
- • Diversified revenue streams across railway and aeronautical/defence segments(p.308)
- • Strong revenue growth trajectory with 61.26% increase in FY2025(p.284)
- • Improved profitability with PAT margin of 13.28% in FY2025(p.284)
- • Enhanced return on equity reaching 30.64% in FY2025(p.284)
- • Significant debt reduction with debt-equity ratio improving to 0.54 from 1.14(p.284)
- • Strong capital-intensive asset base with net block of ₹3,676.08 lakhs in PP&E(p.247)
- • Operational certifications including IRIS, ISO 9001:2015, and EN 15085-2 railway welding standards(p.304)
- • Established relationships with major customers including Integral Coach Factory and HAL(p.304)
Weaknesses
- • Heavy dependence on a limited customer base(p.39)
- • Dependence on limited supplier base for raw materials(p.42)
- • High working capital requirements with significant cash blocked(p.35)
- • Negative operating cash flow in recent year(p.37)
- • Operations dependent on rented facilities not owned by the company(p.36)
- • Significant outstanding litigation and compliance issues(p.38)
- • High employee attrition rate(p.45)
- • High leverage with significant short-term borrowings(p.96)
- • Contingent liabilities from regulatory demand notices(p.48)
- • High inventory holding requirements(p.98)
- • Related party transaction risks(p.48)
- • High customer concentration risk with top 5 customers accounting for 82.48% of revenue(p.124)
- • Significant dependence on Integral Coach Factory as primary customer (53.60% of FY2025 revenue)(p.145)
- • Extended trade receivable days of 218 days indicating working capital pressure(p.124)
- • Need for additional working capital to scale operations(p.143)
- • High cash conversion cycle of 222 days straining liquidity(p.124)
- • High reliance on promoter personal guarantees and collateral for borrowings(p.177)
- • Significant outstanding trade payables indicating working capital pressure(p.230)
- • High leverage with short-term borrowings exceeding long-term debt(p.230)
- • Limited diversification with concentrated family ownership structure(p.200)
- • Violation of Section 185 regarding loans to related parties in prior years(p.227)
- • Material accounting restatements required for gratuity, CSR, and interest expenses(p.198)
- • Heavy dependence on few customers for majority of revenue(p.294)
- • Negative cash flows from operations in FY2025 of ₹444.60 lakhs(p.292)
- • Significant increase in trade receivables indicating working capital strain(p.245)
- • High interest burden with finance costs of ₹1,107.03 lakhs in FY2025(p.290)
- • Substantial outstanding dues to creditors with trade payables of ₹6,392.70 lakhs(p.257)
- • Outstanding GST demands totalling ₹39.89 lakhs under dispute(p.296)
- • Prior period accounting deficiencies requiring substantial restatements(p.238)
- • CSR non-compliance with unspent obligations across multiple years(p.296)
Opportunities
- • Government focus on railway infrastructure development and modernization(p.23)
- • Growth in semi-high-speed train market and global expansion(p.23)
- • Expansion into aerospace and defence segments(p.23)
- • Opportunities to serve global rolling stock OEMs(p.23)
- • Expansion of manufacturing capacity through capital investment(p.92)
- • Increased working capital to serve growing demand(p.97)
- • Strategic initiatives and potential acquisitions(p.99)
- • Debt reduction to improve financial flexibility(p.96)
- • Significant opportunities through new and extended product offerings for existing clients(p.143)
- • Expansion into domestic and overseas markets including collaboration with global OEMs(p.143)
- • Growing Indian railway market expected to be third largest globally in next five years(p.121)
- • Government investment in railway infrastructure with capital expenditure allocation of ₹2.52 lakh crore(p.116)
- • Strong growth in Vande Bharat train manufacturing and exports creating new revenue streams(p.119)
- • Expansion into aerospace and defence segments reducing single-market dependency(p.131)
- • Private investment opportunities through PPP models in Indian railways(p.116)
- • Aerospace and defence manufacturing expansion via newly incorporated subsidiary(p.183)
- • Railway sector growth with expertise in rolling stock and coaches(p.233)
- • Capital market access via IPO to fund growth and reduce debt dependency(p.232)
- • Post-COVID recovery of railway and defence sectors with strong order execution(p.290)
- • Expansion into aeronautical and defence segments representing 41.14% of current revenue(p.308)
- • Potential for improved capacity utilization and fixed cost absorption(p.292)
- • Growth through investment in property and equipment with capital additions of ₹567.32 lakhs in FY2025(p.292)
- • Market opportunity in railway vehicle refurbishment and modernization projects(p.283)
Threats
- • Dependency on Ministry of Railways policy changes which could reduce government spending(p.34)
- • No exclusive supplier relationship; risk of losing orders through competitive bidding(p.34)
- • Volatility in raw material prices(p.34)
- • Foreign exchange rate fluctuation risk from material imports(p.45)
- • Economic downturn could lead to reduced government spending on rolling stock(p.34)
- • Economic slowdown reducing discretionary spending(p.50)
- • Intense competition from domestic and international players(p.49)
- • Regulatory and tax law changes impacting business(p.50)
- • Inflation increasing operational costs(p.52)
- • Extended receivable cycles tied to government payment processes(p.98)
- • Escalation of raw material costs impacting profitability and production schedules(p.143)
- • Dependence on government procurement cycles and policy changes affecting demand(p.102)
- • Competition from larger domestic and global manufacturers in railway rolling stocks(p.151)
- • Geopolitical tensions and trade frictions affecting global supply chains and exports(p.113)
- • Global economic slowdown and subdued growth in developed markets affecting demand(p.112)
- • Industry cyclicality and slowdown in railway infrastructure development(p.122)
- • Significant outstanding GST demands under dispute with regulatory authorities(p.221)
- • Rising finance costs from high short-term borrowing rates(p.231)
- • Substantial aged trade receivables indicating customer payment delays(p.204)
- • MSME payment liability accumulation with statutory interest obligations(p.223)
- • Cyclical nature of railway and defence industry dependent on government budgetary allocations(p.294)
- • Exposure to raw material price volatility and commodity cost fluctuations(p.284)
- • Regulatory risks from GST and tax authorities with multiple ongoing demands(p.296)
- • Foreign exchange and currency fluctuation risks from international operations(p.263)
- • Dependence on specialized equipment and skilled workforce availability(p.284)
- • Regulatory compliance risks including environmental and labour regulations(p.284)
- • Outstanding litigation risks related to CSR non-compliance with potential penalties(p.296)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Venkatesan Dakshinamoorthy | Promoter | 37.20% | — |
| Manikandan Dakshna moorthy | Promoter | 37.20% | — |
| Nandhini Manikandan | Promoter | — | — |
| Sathishkumar Venkatesan | Promoter | — | — |
| Manikandan Dakshinamoorthy | Promoter | 37.20% | — |
| Venkatesan Dakshinamoorthy | Promoter | 37.20% | — |
| Venkatesan Dakshinamoorthy | Promoter | — | — |
| Manikandan Dakshnamoorthy | Promoter | — | — |
| Venkatesan Dakshinamoorthy | Promoter | 37.20% | — |
| Manikandan Dakshna moorthy | Promoter | 37.20% | — |
| Nandhini Manikandan | Promoter | — | — |
| Sathishkumar Venkatesan | Promoter | — | — |
| Dakshinamoorthy Venkatesan | Promoter | 37.20% | — |
| Dakshinamoorthy Manikandan | Promoter | 37.20% | — |
| Aparna Samir Thakker | Promoter Group | 11.41% | — |
Leadership
Venkatesan Dakshinamoorthy · Chairman and Managing Director
Manikandan Dakshna moorthy · Joint Managing Director
Thygarajan Sivakumar · Company Secretary and Compliance Officer
P S Karunakaran · Chief Financial 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.
Offer documents
Airfloa Rail Technology IPO FAQs
What is the lot size of Airfloa Rail Technology IPO?
The minimum lot size of Airfloa Rail Technology IPO is 1,000 shares. One lot costs ₹1,40,000 at the cut-off price.
When does Airfloa Rail Technology IPO open and close?
Airfloa Rail Technology IPO opened for subscription on 11 Sep 2025 and closed on 15 Sep 2025.
What is the listing date of Airfloa Rail Technology IPO?
Airfloa Rail Technology IPO listed on 18 Sep 2025.