Investors rush in to snap up stake in Aeroflex ahead of IPO

Investors rush to snap up shares in Aeroflex Industries Limited, with the leading Indian flexible flow solutions player on course to launch first IPO of flexible flow industry soon.

Marquee investors have bought stake in Aeroflex as per the two filings made by its listed promoter-shareholder, Sat Industries Limited. Some of the investors include Ashish Kacholia, Jagdish Master and Carlenien Fund managed by Vikas Khemani. All of the investors put together have bought over 7% stake in Aeroflex for approximately INR 75 Crores over two months. Investors pool represent ultra HNI investors, family office and a Fund. Notably, one of the investors, Mr Jagdish Master, was co-promoter of Enam which lead managed the first IPO of Sat Group 30 years back. This is expected to lend higher credibility to the Group as per market sources.

Asset light value added business of Aeroflex evidenced by high asset turnover and high ROE, amongst others, are fascinating investors. As per technical experts, metallic fexible flow solutions possess high entry and exit barriers.

Aeroflex exports Make-in-India metallic flexible flow solutions to more than 85 countries, as exports account for more than 80% of the Company's total revenues. Aeroflex's metallic flexible flow solutions replaces rubber and polymer pipes and tubes and thus makes significant positive environment impact. The Company's products have multi-purpose use, catering to numerous industry segments including fire-fighting, aviation & space, defence, semi-conductors, electric vehicles, besides conventional industries such as oil & gas, chemicals and the like.

Having multi-purpose use across numerous industry segments, Aeroflex has massive addressable market backed by its global supply chain. As per the offer documents filed, global publicly listed giants like Parker-Hannifin Corp and Senior Plc have multi-billion dollars of revenue from flexible flow solutions.

Notably, Aeroflex has track record of dividend distribution for last two years and has clearly defined dividend policy of distributing within the range of 7% - 15% dividend, as per disclosures in the offer document.

Aeroflex expects to float IPO of raise INR 350 Crores. Pantomath Capital is the sole BRLM to the IPO.

Source : Equity Bulls

Keywords

AeroflexIndustries PreIPO Demand MarqueeInvestors Investment