Aeroflex Industries Ltd IPO - Review, Valuation & Todays GMP

Aeroflex Industries Limited - Complete Overview

Mumbai-based Aeroflex Industries received SEBI nod for IPO. The company founded in 1993, Aeroflex Industries is a prominent manufacturer and supplier of environmentally-friendly metallic flexible flow solutions. 

These products cater to both global and domestic markets, with an impressive export presence in over 80 countries, including Europe, the USA, and others. The total contribution of exports to the revenue of operations is 80.85%, 84.53%, 80.90%, and 74.74% for the ten-month period ending January 31, 2023, and the fiscal years 2022, 2021, and 2020, respectively.

Aeroflex Industries serves a diverse range of industries requiring a controlled flow of various substances such as air, liquids, and solids. Over the ten months up to January 31, 2023, the company successfully supplied its products to a total of 633 customers.

The company's product portfolio encompasses a variety of categories, 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 associated end fittings. Impressively, as of January 31, 2023, Aeroflex Industries boasts a product portfolio featuring more than 1,700 distinct Product SKUs.

Aeroflex Industries' manufacturing facility, situated in Taloja, Navi Mumbai, Maharashtra, spans an expansive area of 359,528 square feet. 

This facility holds international certifications for quality management systems, environmental management systems, health and safety management systems, including compliance with Annex III, Module H of Directive 97/23/EC on Pressure Equipment. It holds certifications such as ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), ISO 45001:2015 (Occupational Health & Safety), NABL ISO/IEC 17025:2017 (Testing Certificate), and statements of conformity for design, manufacturing, and testing standards, including EN ISO 10380:2012 and BS 6501-1 (E:2004), along with a Certificate of Design Assessment.

The company's clientele includes distributors, fabricators, Maintenance Repair and Operations (MRO) firms, Original Equipment Manufacturers (OEMs), and enterprises spanning various industries.

 

 

What does the company do?

Aeroflex Industries is involved in the production and distribution of environmentally friendly metallic flexible flow solution products, serving both international and domestic markets.

 

Company Products 

The product categories of the company include 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. As on January 31, 2023, the company had more than 1,700 Product SKUs in their product portfolio.

 

IPO Overview

Aeroflex Industries IPO date has been scheduled from August 21, 2023, to August 23, 2023. The offering encompasses both fresh issue shares, totalling up to Rs.160.00 Crores, and 12,300,000 shares for OFS.

The Aeroflex Industries Ltd share price has not been disclosed by the company at this time. The IPO is anticipated to be listed on both the BSE and NSE exchanges on August 31, 2023

 

Aeroflex Industries Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	22 August 2023
IPO Closing Date	24 August 2023
IPO Allotment Date	28 August 2023
Refund initiation	29 August 2023
IPO Listing Date	31 August 2023

 

Aeroflex Industries Limited IPO Details

IPO Opening & Closing Date	22 August to 24 August 2023
Face Value	Rs. 2 per share
Issue Price	Coming Soon
Lot Size	Coming Soon
Price of 1 Lot	Coming Soon
Issue Size	Coming Soon
Offer for Sale	12,300,000 shares of Rs. 2 (aggregating up to Rs. [.] Cr)
Fresh Issue	[.] shares (aggregating up to Rs. 160.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Aeroflex Industries Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Aeroflex Industries Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Crores

Period	FY 21	FY 22	FY 23
Total Assets	161.64	183.44	213.98
Total Revenue	144.84	240.99	269.48
PAT	6.01	27.51	30.15
Net Worth	58.72	86.22	114.09
Total Borrowings	53.07	39.13	45.01

 

Company's revenue from operations from various industry segments

(Amount in Million)

Industry / Sector	Ten months ended January 31, 2023	FY 22	FY 21
Steel	475.99	509.51	381.79
Oil and Gas	408.39	375.31	200.19
Refineries	355.12	316.67	171.59
Fire Sprinklers & Fire Fighting	340.23	572.10	285.99
Chemicals & Petrochemicals	337.37	351.85	228.79
Metals & Mining	177.56	159.61	111.96
Solar	17.11	-	-
Others	37.48	60.63	25.24
Total	2149.25	2345.68	1405.56

 

Objective of the Issue

The company will utilize the net proceeds to fund the following objectives:

• Complete or partial repayment and/or prepayment of specific outstanding secured borrowings (including associated foreclosure charges, if applicable) obtained by our Company.
• Sustaining the working capital necessities of our Company.
• Addressing general corporate purposes and certain unidentified inorganic acquisitions.

 

Promoters and Management of Aeroflex Industries Limited

Sat Industries Limited and Italica Global FZC are among the key promoters of the company.

Pre-issue Promoters Holding	91.09%
Post-issue Promoters Holding	--

 

Peer Comparison

• While global peers may not be a precise match, the company has offered information to enable a broad comparison.
• Financial data for listed industry peers is consolidated and sourced from their annual reports as of December 31, 2022.
• The industry peers' P/E Ratio has been calculated by dividing the closing market price of equity shares on NYSE / LSE on March 24, 2023, by the EPS for the year ended December 31, 2022.

 

Company Name	Total Income	Diluted EPS	Diluted P/E Ratio	CMP Per Share
Aeroflex Industries Limited	2,409.92	2.41	-	-
Parker Hannifin Corporation	15,861.61	10.09	31.80	320.87
Senior PLC	848.40	0..01	31.80	0.38

 

IPO's Valuations

The IPO valuation of Aeroflex Industries Ltd IPO cannot be determined as the P/E ratio and issue price are not specified by the company.

 

Dividend Policy

Aeroflex Industries has provided dividends over the last two years, in accordance with a well-defined dividend policy within the range of 7-15%, as outlined in its DRHP.

 

IPO's Strengths

• Operates as a global provider of flexible flow solutions within a substantial addressable market.
• Serves a wide range of industry segments, positioned to capitalize on significant industrial trends.
• Thrives through an export-focused business strategy.
• Being the primary manufacturer of flexible flow solutions (Make-in-India, Make-For-World), the company possesses an advanced manufacturing facility and R&D infrastructure, with no listed peers.
• High entry and exit barriers.
• Demonstrates consistent and strong financial performance.
• Benefits from the expertise of an adept and committed senior leadership team.

 

IPO Weaknesses

• Approximately 80% of the company's revenue is derived from product exports to diverse countries, potentially making it susceptible to substantial import duties or jurisdictional restrictions.
• Due to the nature of the business, the company does not have long-term agreements with suppliers for raw materials or with its customers.
• The company's reliance is concentrated on a sole manufacturing facility.
• The company has experienced negative cash flows from operations in the recent past.
• Operating within a fragmented and diversified sector, the company faces competition from both large and small global as well as domestic players.
• An unsecured loan held by the company is subject to potential recall by the lender.
• The company's Promoter is currently engaged in pending tax proceedings.
• Operational restrictions are imposed by the company's financing agreements.
• Routine business operations necessitate numerous approvals, NOCs, licenses, registrations, and permits.
• The company is unable to trace some of its historical records.

 

 

IPO GMP Today

Latest GMP of Aeroflex Industries is Rs.60.

 

Conclusion

Aeroflex Industries boasts robust financial performance and operates an extensive export network. The company is currently demonstrating strong growth. The Aeroflex Industries Limited IPO may be a good opportunity for investors. However, investors are advised to thoroughly assess all relevant factors to ensure favourable results, Prior to applying for the IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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