Aeron Composite shares debut with 20% premium over IPO price on NSE SME

Aeron Composite plans to use the fresh proceeds to establish a new manufacturing unit

Shares of Aeron Composite were off to a decent start on its stock market debut on September 4 after listing at Rs 150, a premium of 20 percent over the issue price of Rs 125 per share on the NSE SME platform.

The listing gains mostly match grey market estimates as the shares were trading at a premium of about 27 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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Aeron Composite was book built issue of Rs 56.10 crore consisting of entirely a fresh issue of 44.88 lakh shares. The public offer received robust investor interest after it was subscribed 41 times over three days. Non-institutional investors were the most active, buying over 75.53 times the allotted quota. Retail investors followed next, purchasing 34 times the portion reserved for them. QIBs or qualified institutional buyers roped in 27.8 times their allotted portion.

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Established in 2011, Aeron Composite Limited manufactures and supplies glass fibre reinforced polymer (FRP) products such as pultruded products, moulded gratings, and rods for diverse industrial uses. The company provides end-to-end solutions, including conceptual design, prototype development, testing, manufacturing, logistics, installation, and after-sales service.

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The company plans to use the fresh proceeds to establish a new manufacturing unit and the remaining funds will be earmarked for general corporate purposes.

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