Aeroflex Industries Limited IPO

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i. Aeroflex Industries are manufacturers and suppliers of environment friendly metallic flexible flow solution products catering to global as well as domestic markets. They export their products to more than 80 countries including Europe, USA and others. Their exports contributed to 80.85%, 84.53%, 80.90% and 74.74% of their revenue from operations, for the ten months period ended January 31, 2023 and Fiscals 2022, 2021 and 2020, respectively.

ii. Company’s product categories 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.

iii. They are into metallic flexible flow solutions made of SS. They have recently developed products made of bronze as well. They products replace flow solutions made of rubber and polymers. Flexible flow solutions made with stainless steel corrugation are becoming a preferred solution because of their numerous advantages. The technical characteristics of SS is the basic attribute that imparts flexible flow solutions made with stainless steel corrugation with its advantages including resistance to external elements, maintaining the quality of media transferred, resistance to abrasion and corrosion, low probability of catastrophic failure, resistance to temperature, maintenance of full vacuum, compatibility to chemicals, among others.

Competitive Strengths

i. Export oriented business model
ii. Primary Manufacturer of flexible flow solutions (Make-in-India, Make-For-World) with no listed peers with advanced manufacturing facility and R&D infrastructure
iii. High entry and exit barriers

Objects of the Aeroflex Industries Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Full or part repayment and/or prepayment of certain outstanding secured borrowings (including foreclosure charges, if any) availed by the company, ii. Funding working capital requirements of the company, and iii. General corporate purposes and Unidentified Inorganic Acquisitions. Total number of shares issues: - a) IPO is 15,000,000 shares b) OFS is 17,500,000 shares
DRHP of Aeroflex Industries Limited IPO
RHP of Aeroflex Industries Limited IPO

Aeroflex Industries Limited IPO Details:

Open Date: Aug 22 2023
Close Date: Aug 24 2023
Total Shares: 32,500,000
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 162 Cr.
Lot Size: 130 Shares
Issue Price: ₹ 102 - 108 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 01 2023

Promoters And Management:

Asad Daud, aged thirty-two (32) years, is the Managing Director and Chairman of the Company. He holds a bachelor’s degree in accounting and finance from Hassaram Rijhumal (H.R.) College of Commerce and Economics, Mumbai and a master’s degree in accounting and finance from London School of Economics, London. He has over 12 years of experience in the manufacturing industry and has played an instrumental role in expanding the domestic and foreign operations of the Company. He’s involved in bringing about innovation in the operations and products of the Company. His input has helped the Company to diversify its operations and activities. Mustafa Abid Kachwala, aged fifty-five (55) years, is the Whole-time Director of the Company. He holds a bachelor’s degree in commerce from Mumbai University. He has worked with Akbarallys Pharma Vet Division in Mumbai from 1986 to 2004 before joining Aeroflex Industries Limited. He has been associated with the Company since 2010 and was re-designated as the Chief Financial Officer with effect from November 28, 2022. He currently looks after the financial affairs of the Company. Ramesh Chandra Soni, aged sixty-three (63) years, is the Independent Director of the Company. He holds a bachelor’s degree in commerce from University of Udaipur. He is also a fellow member of Institute of Chartered Accountants of India. He is a practicing chartered accountant and has experience of over 35 years in the fields on accounts, finance, taxation and banking.

Financials of Aeroflex Industries Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 228.64 228.64 228.64
Reserves 359 634 912
Borrowings 531 391 450
Trade Payables 403 342 366
Other Liabilities 95 239 182
Total Liabilities 1,029 972 999
Net Block 430 458 555
Capital Work in Progress 0 64 6
Other Assets 32 23 34
Total NC Assets 462 545 595
Receivables 338 526 670
Inventory 343 358 560
Cash & Bank 36 83 63
Other Assets 437 322 252
Face value 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 1,448 2,408 2,695
Raw Material Cost 945 1,563 1,878
Change in Inventory -9 -3 -178
Employee Cost 131 175 232
Other Expenses 157 205 222
Other Income 1 2 0.2
EBITDA 224 469 541
EBITDA Margin 15.47% 19.47% 20.06%
Depreciation 38 42 52
Interest 89 63 46
Profit before tax 80 369 412
Tax 20 94 111
Net profit 60 275 302
NPM (%) 4.15% 11.41% 11.19%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 118 327 356
Receivable -42 -188 -144
Inventory -26 -15 -202
Payable 66 -62 24
Other WC Items 5 182 18
Working Capital Changes 3 -82 -303
Direct Taxes -0.2 76 -15
Net Cash Inflow from Operating Activity 121 321 38
Cash from Investing Activity
Fixed assets purchased -29 -134 -95
Net cash inflow from investing activities -29 -134 -95
Cash from Financing Activity
Proceeds from borrowings -104 -143 -13
Repayment of borrowings 0 4 72
Dividends paid 0 0 -23
Net Cash Flow -12 47 -21
 

Comparison With Peers:

Note: - There are no listed companies in India that are engaged in a business similar to this Company.

Recommendation on Aeroflex Industries Limited IPO:

Review And Recommendation of Aeroflex Industries by IZ team is 6/10 Read Review Here

Lead Manager of Aeroflex Industries Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Aeroflex Industries Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Aeroflex Industries Limited Plot No. 41, 42/13, 42/14 & 42/18, near Taloja MIDC, Village Chal, Behind IGPL, Panvel, Navi Mumbai - 410 208 Phone: +91 22 61467100 Email: corporate@aeroflexindia.com Website: https://www.aeroflexindia.com/

Discussion on Aeroflex Industries Limited IPO:

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