Airfloa Rail Tech shares continued to draw strong investor demand on the second day of its initial public offering (IPO), with the issue subscribed 50 times so far.
According to market observers, the company’s shares are quoting a grey market premium (GMP) of around 120 percent, reflecting sustained investor interest. Data from Investorgain showed a GMP of Rs 166, indicating a potential listing gain of about 118.5 percent. However, under SME exchange rules, listing gains are capped at 90 percent.
The Rs 91-crore public issue of the Tamil Nadu-based rolling stock components maker opened on September 11 and will close on September 15.
Airfloa Rail Tech operates two manufacturing facilities in Chennai and Kancheepuram, producing forged and machined components for rolling stock, aerospace and defence sectors, besides undertaking turnkey railway interior projects.
Of the IPO proceeds, Rs 13.7 crore has been earmarked for purchase of machinery and equipment, Rs 59.3 crore for working capital, Rs 6 crore for debt repayment, while the balance will go towards general corporate purposes.
For 2024-25, the company reported a profit of Rs 25.6 crore, up 79.6 percent from Rs 14.2 crore in the previous year. Revenue during the same period rose 61.3 percent to Rs 192.4 crore from Rs 119.3 crore.
Airfloa Rail Tech IPO share allotment will be finalised on September 16 by the registrar to the issue, KFin Technologies Ltd. Listing on the BSE SME platform is scheduled for September 18.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
