Aeron Composite Limited IPO

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Aeron Composite Limited specialize in the manufacturing and supply of Fiber Glass Reinforced Polymer (FRP) products, including pultruded products, molded gratings, and rods, tailored for diverse industrial applications. Their offerings encompass a complete solution, from conceptual design and prototype development to manufacturing, logistics, installation, and after-sales service. FRP is a composite material that combines a polymer matrix reinforced with fibers such as fiberglass, carbon, or aramid, offering benefits like corrosion resistance, high strength, lightweight properties, and non-conductivity.

Their manufacturing facility is ISO 9001:2015 certified and produces a range of FRP products, including handrails, cable trays, fencing, cross arms, poles, and mounting structures for solar panels. Their in-house R&D unit is registered with the Department of Scientific & Industrial Research, enabling them to develop new products and processes. They have also been recognized as a “Two Star Export House” under the Foreign Trade Policy of 2023.

They generate revenue from both domestic and international markets, serving over 800 customers in more than 30 countries. They cater to various industries, including telecommunications, oil and gas, refineries, renewable energy, and chemicals. Their notable clients include government entities like ONGC, NTPC, and Gujarat State Fertilizers & Chemicals, as well as major corporations such as Grasim Industries, Larsen & Toubro, and TATA Projects.

They initially focused on pultruded products at a rented facility in Changodar, Gujarat. They expanded their product portfolio in 2012-13 to include FRP molded gratings and further diversified in 2014-15 with the introduction of FRP rods. In 2019, they relocated to a larger manufacturing unit measuring 26,320 square meters in Saket Industrial Estate, Ahmedabad, to support their growth and expansion plans. They also operate a marketing office in Ahmedabad.

Objects of the Aeron Composite Limited IPO:

The company intends to use the net proceeds from the issue towards the following objectives: i. Funding the Capital Expenditure requirements towards setting up of an additional manufacturing unit ii. General Corporate Purpose

Aeron Composite Limited IPO Details:

Open Date: Aug 28 2024
Close Date: Aug 30 2024
Total Shares: 4,488,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 56.10 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 - 125 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 04 2024

Promoters And Management:

Dilipkumar Ratilal Patel, Promoter, Chairman, and Non-Executive Director of the Company, has been associated with the Company since its inception. He completed the first year of a Bachelor of Commerce at Saurashtra University in 1975. With over 39 years of experience across various industries, including 13 years in the composite industry, he has expertise in business development, management, and finance. Currently, he plays a key role in formulating and implementing business strategies and overseeing Human Resources and CSR activities. Chirag Chandulal Patel, Promoter and Managing Director of the Company, completed his Higher Secondary education in 2005. With over 13 years of experience in the packaging, food, and composite industries, including 3 years in the composite industry since joining the company in 2021, he has overseen production operations throughout his career. Currently, he manages the company's entire production and operations, including vendor management, business operations, and after-sales services. Pankaj Shantilal Dadhaniya, Promoter and Whole-Time Director of the Company, has been with the Company since its inception. He holds an MBA from the University of Pune (1997) and has over 19 years of experience across various industries, including 13 years in the composite industry. With expertise in business development and finance, he currently oversees overall finance and secretarial activities, providing daily guidance to the team.

Financials of Aeron Composite Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 7,882 10,834 17,938 17,914
Other Income 24 159 261 166
Total Revenue 7,906 10,993 18,199 18,080
Cost of materials consumed 4,838 8,195 12,207 11,694
Changes in inventories 87 -727 276 -567
Employees Benefit Expenses 580 667 1,150 1,728
Other Expenses 1,748 2,074 3,288 3,577
EBITDA 653 783 1,278 1,648
OPM (%) 8.26% 7.12% 7.02% 9.11%
Depreciation & Amortisation 181 166 162 198
EBIT 472 616 1,116 1,450
Finance Cost 107 115 160 113
PBT 365 502 956 1,337
Tax 110 140 295 394
PAT 255 362 661 942
NPM (%) 3.23% 3.29% 3.63% 5.21%
No.of Shares 170.20 170.20 170.20 170.20
EPS 1.50 2.12 3.88 5.53

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in the business line similar to this company

Recommendation on Aeron Composite Limited IPO:

1. Aeron Composite Limited is a prominent manufacturer and supplier of Fiber Glass Reinforced Polymer (FRP) products, specializing in FRP Pultruded Products, FRP Moulded Gratings, and FRP Rods designed for various industrial applications. Their offerings encompass a complete solution, including conceptual design, prototype development, testing, manufacturing, logistics, installation, and after-sales support. 2. Market Presence They generate revenue from both domestic and international markets, catering to over 800 customers across more than 30 countries. They serve various industrial sectors, including telecommunications, oil & gas, refineries, renewable energy, and chemicals. Their clientele includes esteemed government entities like ONGC Tripura Power Co. Ltd., NTPC Limited, Gujarat State Fertilizers & Chemicals Ltd., and Gujarat Narmada Valley Fertilizers & Chemical Ltd., as well as major private corporations such as Grasim Industries Limited, Larsen & Toubro Limited, and TATA Projects Limited. 3. Competition Operating in a niche market, their company is well-equipped to deliver high-quality products with timely delivery, maintaining strong customer relationships. While various large and small manufacturers and distributors offer similar products, they do not have any direct listed competitors in their business segment. 4. The Revenue has Increased from Rs.79 Crores in FY21 to Rs.179 Crores in FY23. 5. The EBITDA has Increased from 6.5 Crores in FY21 to 13 Crore in FY23. 6. The PAT has Increased from 2.5 Crores in FY21 to 6.6 Crores in FY23. 7. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 6.03, 8. Market Capitalization is 213 Crores & P/E is 20.7x based on FY24.

Lead Manager of Aeron Composite Limited IPO:

  1. Hem Securities Limited

Registrar of Aeron Composite Limited IPO:

  1. Maashitla Securities Pvt. Limited

Company Address:

Aeron Composite Limited Saket Ind. Estate, Plot No. 30/31, Sarkhej Bavla Highway, Village Moraiya, Changodar, Ahmedabad - 382213 Phone: +91 9909988266 Email: cs@aeroncomposite.com Website: https://www.aeroncomposite.com/

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