Airfloa Rail Tech SME IPO GMP surges to nearly 120% as issue subscribed 21x on Day 1

Airfloa Rail Tech IPO GMP soars to 120% in September 11 trade.

Airfloa Rail Tech shares were in strong demand on the first day of its initial public offering (IPO), with the issue subscribed nearly 21 times in the primary market.

According to market trackers, the company’s shares are quoting a grey market premium (GMP) of nearly 120 percent, indicating robust investor interest. Investorgain reported a GMP of Rs 166, implying a potential listing gain of about 118.5 percent.

The Rs 91-crore issue of the Tamil Nadu-based rolling stock components manufacturer opened on September 11 and will close on September 15.

The company operates two manufacturing facilities in Chennai and Kancheepuram, producing forged and machined components for the rolling stock, aerospace and defence sectors, and also undertakes turnkey interior furnishing projects for railways.

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Rs 13.7 crore of the IPO proceeds will be used for purchase of machinery and equipment, and Rs 59.3 crore for working capital requirements. Further, Rs 6 crore will be utilised for repayment of certain borrowing, and the remainder for general corporate purposes.

Airfloa has reported strong financial performance in the recent past years with profit in the fiscal 2025 growing sharply by 79.6 percent to Rs 25.6 crore, up from Rs 14.2 crore in the previous year. Revenue in the same period increased by 61.3 percent to Rs 192.4 crore, up from Rs 119.3 crore.

Airfloa Rail Tech shares will finalise the basis of allotment on September 16, while listing on the BSE SME platform is scheduled for September 18.

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