Aeroflex Industries Ltd IPO: Mumbai-based Aeroflex Industries, has received capital markets regulator Securities and Exchange Board of India (SEBI) approval to raise funds through an initial public offer (IPO).
In April, Aeroflex Industries, which is a subsidiary of Sat Industries had filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise about ₹350 crores through an Initial Public Offering (IPO).
A fresh issue of equity shares up to the value of ₹160 crore and an offer-for-sale (OFS) of up to 1.75 crore equity shares by the promoters selling shareholders and promoter group make up the offer, which has a face value of ₹2 per equity share.
“We have been informed by Aeroflex Industries Limited, our subsidiary, that it has received a clearance from the Securities and Exchange Board of India (SEBI), for its initial public offer (IPO) subject to submission of requisite documents as per the final observation letter dated 31st July 2023,” said Sat Industries in an exchange filing.
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In consultation with the book running lead manager (BRLM), the company may provide a discount to the eligible shareholders of Sat Industries Ltd, which is its promoter and is already listed on the stock exchanges.
According to the DRHP, the fresh issue’s proceeds will be used to pay up debt, meet working capital needs, and set aside a portion for general corporate uses and acquisitions for inorganic development.
Pantomath Capital Advisors Private Ltd is the sole BRLM for the offer, and Link Intime India Private Ltd is the registrar. The company’s shares will be listed on the BSE and NSE.
Also Read: Mumbai-based Aeroflex Industries files DRHP to raise ₹350 crore via IPO launch
The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers. The shareholders of Sat Industries Ltd may receive up to 10% of the offer.
According to the DRHP, for fiscal 2022, the company’s consolidated revenue from operations stood at ₹240.8 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) was ₹46.7 crore and EBITDA margin came in at 19.4%. The company’s profit after tax (PAT) for fiscal 2022 was ₹27.5 crore with profit after taxes (PAT) margin of 11.4%.
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Updated: 02 Aug 2023, 01:28 PM IST