Aeroflex IPO: The initial public offering (IPO) of stainless steel flexible hose manufacturer Aeroflex Industries Ltd, which was opened for public subscription between August 22 and 24, got an overwhelming response with 97.07 times subscription. The Rs 351-crore IPO received bids for 2,25,37,18,090 shares against 2,32,17,667 shares on offer.
Shares of Aeroflex are scheduled to be listed on BSE and NSE on August 31. The share allotment will take place on Tuesday, August 29.
Aeroflex IPO GMP
According to market observers, Aeroflex Industries is currently trading Rs 70 higher in the grey market. The Rs 70 grey market premium or GMP is about 64.8 per cent higher than its upper issue price of Rs 108 per share. This means the grey market is expecting 64.8 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About Aeroflex IPO
The category for qualified institutional buyers (QIBs) received a whopping 194.73 times subscription while the quota for non-institutional investors got subscribed 126.10 times and retail individual investors (RIIs) 34.35 times.
The IPO had a fresh issue of up to Rs 162 crore and an offer for sale of up to 1.75 crore equity shares. The price range for the offer was Rs 102-108 a share.
The company has said it collected close to Rs 104 crore from anchor investors.
The proceeds from the fresh issue will be utilised for repaying a debt, and funding working capital requirements, while a certain amount will be used for general corporate purposes and acquisitions for inorganic growth, according to the company.
The company’s equity shares are proposed to be listed on the BSE and the NSE.
Pantomath Capital was the manager to the offer.
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