Aeroflex's 80% sales is from export, in the global market it is about $3 billion: MD Asad Daud

"We supply to all critical industries like oil & gas, petrochemicals and new age industries like fire sprinklers, solar, EVs, etc," Daud said.

Speaking of competition, Daud said there is no listed company in India as of now that's in a similar line of business.  He said, "We'll be creating a new category on the stock exchanges,"

Explaining the reason for the high inventory, Daud spoke about the working capital cycle. "Since more than 80% of our sale is from exports and around 40% of our raw materials are imported, we need to keep sufficient inventory to ensure smooth flow of our production," he said. Explaining the production process, he said it takes 4-6 weeks for production at a manufacturing plant.

Speaking on raw materials, Daud said that there are two kinds of raw materials that the company buys. One is wire and another is coil. The wire is bought 100 per cent from India, but in terms of the coil, 70 percent is imported currently, most of which comes from China. "(We are) looking at suppliers from India for coil," he added.

Also Read | Aeroflex Industries IPO opens today: 10 things to know before buying shares