Aeroflex Industries, which makes metallic flexible flow solution products, has received the go-ahead from the capital markets regulator Securities and Exchange Board of India (Sebi) to launch its public issue.
The company is aiming to raise Rs 350 crore from the initial public offering (IPO), which will comprise fresh issuance of equity shares worth Rs 160 crore and an offer-for-sale of 1.75 crore equity shares by promoters SAT Industries and Italica Global FZC.
The company had filed the draft IPO papers with Sebi on March 31 and the regulator issued its observation letter for the IPO on July 31, according to the published processing status report.
In Sebi parlance, the observation issued over draft offer document means the company can launch its proposed initial share sale.
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The subsidiary of listed diversified business group SAT Industries is going to use the fresh issue proceeds for repaying its debt, address working capital requirements, and for general corporate purposes and unidentified inorganic acquisitions.
The company, which had 1,700 SKUs (stock keeping units) in its product portfolio, exports to more than 80 countries. Exports contributed 80.85 percent to its revenue for the 10 months to January 2023.
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Flexible flow solutions play a critical role in transfer of substances (air, liquid and solid) in any industrial or commercial ecosystem, connecting the origin and end-points of various processes. For instance, flow solution products are required in fire sprinklers, gas supply, flow of air in aircraft, fueling and hydraulics in aircraft.
Promoters SAT Industries held 92.18 percent stake in Aeroflex and 6.52 percent shares were with other promoter Italica Global FZC at the time of filing the draft papers. The remaining 1 percent was held by public.
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In May and June this year, SAT Industries entered secondary transactions with investors such as Ashish Kacholia, Carnelian Structural Shift Fund, VPK Global Ventures Fund and Samedh Trinity Partners. The company has transferred 86.95 lakh equity shares to these investors at a price of Rs 87.56 per share, and raised Rs 76.13 crore.
Pantomath Capital Advisors is the merchant banker for the issue.
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