Shares of SAT industries rose nearly 2 percent on August 2 after its subsidiary company Aeroflex Industries received clearance from the Securities Exchange Board of India for its initial public offering (IPO). Aeroflex, which manufactures stainless steel flexible flow solutions, filed a draft red herring prospectus with Sebi in April to raise around Rs 350 crore.
The IPO is said to consist of a fresh issue of Rs 160 crore and an offer-for-sale of up to Rs 190 crore by its existing shareholders and promoters. According to the filing, proceeds from the issue will be used to repay debt worth Rs 35 crore and Rs 84 crore will be used to fund working capital requirements.
SAT Industries holds 92.18 percent stake and Italica Global FZC has a 6.52 percent holding in Aeroflex. As of 1.05 pm, the stock was trading at 106.70 on the NSE, higher by a percent from the previous close.
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SAT Industries has a presence in a wide range of activities such as manufacturing, global outsourcing of products and services, real estate, mining and marketing activities. Mumbai-based SAT industries, is a diversified business group with presence in manufacturing, leasing, finance, investments, domestic trading and import and export. It also has a presence in more than 100 countries, through subsidiaries.
Aeroflex currently serves both domestic and international markets, with products exported to over 80 countries. In July, SAT industries sold a 3.55 percent stake in Aeroflex Industries to Carnelian Structural Fund.
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