Airfloa Rail Technology IPO Closes with Staggering 110x Oversubscription
Airfloa Rail Technology's Rs 91.1 crore SME IPO closed with a 109.54 times oversubscription. The IPO offered 65 lakh fresh shares at Rs 133-140 each. Retail investors oversubscribed 169.71 times, while non-institutional investors oversubscribed 111.89 times. The grey market premium stands at Rs 166 per share, suggesting a potential listing price of Rs 306. Share allotment is scheduled for September 16, with listing expected on September 18 on the BSE SME platform. The company plans to use the funds for capital expenditure, debt repayment, and working capital requirements.
*this image is generated using AI for illustrative purposes only.
Airfloa Rail Technology, a manufacturer of rolling stock components for Indian Railways, concluded its Initial Public Offering (IPO) on September 15 with an overwhelming response from investors. The SME IPO, valued at Rs 91.1 crore, witnessed a remarkable oversubscription of 109.54 times by 11:34 a.m. on its closing day.
IPO Details
The IPO comprised 65 lakh fresh shares priced in the range of Rs 133-140 per share. The enthusiastic response from investors was evident across various categories:
- Retail investors: Oversubscribed 169.71 times
- Non-institutional investors: Oversubscribed 111.89 times
Grey Market Premium
The grey market premium for Airfloa Rail Technology stands at an impressive Rs 166 per share. This indicates an estimated listing price of Rs 306, suggesting potential gains of 118.57% for investors.
Key Dates
- Share allotment: Scheduled for September 16
- Listing: Expected on September 18 on the BSE SME platform
Company Performance
Airfloa Rail Technology has demonstrated strong financial performance:
| Metric | FY24 |
|---|---|
| Revenue | 119.30 |
| Net Profit | 14.23 |
Utilization of IPO Proceeds
The company plans to utilize the funds raised from the IPO for:
- Capital expenditure on machinery
- Debt repayment
- Working capital requirements
The robust oversubscription and strong grey market premium indicate high investor confidence in Airfloa Rail Technology's business model and growth prospects in the railway component manufacturing sector.
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