Aeron Composite Pvt Ltd IPO: Review, Valuation, Date & GMP

Aeron Composite IPO-Complete Overview

Aeron Composite IPO an SME IPO is a book built issue of Rs.56.10 crore by Aeron Composite Ltd. which was founded in 2011 and specializes in producing and distributing glass fiber reinforced polymer (FRP) goods, such as FRP rods, FRP molded gratings, and FRP pultruded products, for a range of industrial uses.

The company's full solution offerings include conceptual design, prototype development, testing, manufacturing, logistical support, installation, and after-sales service.

The company's 26320 square meter manufacturing plant is in the Saket Industrial Estate. For the design, production, and distribution of FRP pultruded products, FRP handrails, FRP cable trays, FRP fencing, FRP molded gratings, FRP cross arm, FRP poles, FRP rods, and molded mounting systems for solar panels (MMS), the manufacturing plant holds an ISO 9001:2015 certification.

This new SME IPO is to be launched on 28 August 2024, and its ‘initial public offering’ will end on 30 August 2024.

Aeron Composite IPO Overview

The Rs.56.10 crore Aeron Composite Ltd. IPO consists of wholly a fresh issue of 44.88 lac Shares.

This SME IPO date is from August 28-August 30, 2024. The expected IPO listing date is Wednesday, September 04, 2024, on NSE and SME. Aeron Composite IPO price band is Rs.121 to Rs.125 for each Share.

To open a demat account and apply for the IPO, Click Here.

 

Company Financial

Below is the synopsis of the company's financial data for the period that concluded 29 February 2024.

• The total assets of the company are Rs.9,979.42 lac.

• The total revenue of the company is Rs.18,080.35 lac.

• The company’s PAT is Rs.942.23 lac.

• The net worth of the company is Rs.3,478.19 lac.

• The company’s EBITDA is Rs.1427.11 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Geography-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the necessary capital expenditures for the establishment of an extra industrial facility.

• General corporate purposes.

Peers of Aeron Composite Ltd. 

As per the information available in the RHP of the company, there are no listed companies engaged in a similar business of comparable size.

Evaluation

The IPO price is Rs.121 to Rs.125 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 29 Feb 2024 with an EPS of Rs.7.52 from the last year, the resulting P/E ratio is 16.62x.

Considering the weighted EPS of Rs.4 for the last three years, the P/E ratio is 31.25x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available.

IPO's Strengths 

• Income from several regions and nations throughout the world.

• A steady emphasis on quality.

• An extensive selection of fiberglass-reinforced polymer products.

• Marketing and advertising campaigns.

• Senior Management with Experience.

 

IPO’s Weaknesses

•  A rise in labor and raw material costs could negatively impact the company's operations, performance, and financial situation.

• There is a chance that the company’s plans to establish a new manufacturing facility in Gujarat's Mehsana district will not go as planned. The company might also have to temporarily halt operations while it moves to the new facility, which could affect the company's production operations.

• Since a significant percentage of the revenue comes from these few clients, their loss, a decline in their prospects or financial situation, or a decline in their desire for the goods could have an impact on the company.

• Since the company relies on its clients, a decline in sales or revenue from any one of its major clients might harm its operations and overall company performance.

• The company had a negative cash flow from its investing and financing activities in the past FYs, sustained negative cash flow could impact its growth and business.

Aeron Composite IPO GMP Today

Aeron Composite IPO GMP today is Rs.0 as of 28 August 2024.

IPO Timetable (Tentative)

The IPO date is from August 28 to August 30, 2024, with allotment on September 02, refund initiation on September 03, and listing on September 04, 2024.

 

 

Aeron Composite IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 28, 2024, close on August 30, 2024, and offer a wholly fresh issue size of 4,488,000 Shares (aggregating up to Rs.56.10 Cr).

Aeron Composite IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,25,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,50,000.

 

Aeron Composite IPO Reservation

Promoters And Management of Aeron Composite Ltd.

• Dilipkumar Ratilal Patel

• Chirag Chandulal Patel

• Pankaj Shantilal Dadhaniya

• Ravi Pankajkumar Patel

• A. International Private Limited 

IPO Lead Managers

• Hem Securities Limited.

Dividend Policy

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. 

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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