Airfloa Rail Technology's Rs 91 Crore IPO Opens with Strong Grey Market Premium
Airfloa Rail Technology, a supplier to Indian Railways, has opened its IPO to raise Rs 91 crore. The issue comprises 65.1 lakh shares priced between Rs 133-140 per share. The IPO runs from September 11 to 15, with listing on September 18. The company plans to use the funds for capital expenditure, debt repayment, and working capital. Airfloa specializes in manufacturing rolling stock components for railways, aerospace, and defense sectors. The company's revenue increased from Rs 122.90 crore to Rs 192.70 crore, while profit after tax grew from Rs 14.20 crore to Rs 25.60 crore. The IPO has a grey market premium of 120%, suggesting strong investor interest.
*this image is generated using AI for illustrative purposes only.
Airfloa Rail Technology, a key supplier to Indian Railways, has launched its Initial Public Offering (IPO) on the BSE SME platform, aiming to raise Rs 91 crore. The IPO, which opened for subscription on September 11, is set to close on September 15, with the listing scheduled for September 18.
IPO Details
The fresh issue comprises 65.1 lakh shares priced in the band of Rs 133-140 per share. At the upper price band, the company is valued at a post-issue market capitalization of Rs 335.60 crore. Notably, the IPO has garnered significant interest in the grey market, commanding a premium of 120%. This suggests that shares may potentially list above Rs 300, compared to the upper price band of Rs 140.
Fund Utilization
The proceeds from the IPO are earmarked for several key purposes:
- Capital expenditure: Rs 13.70 crore
- Debt repayment: Rs 6.00 crore
- Working capital: Rs 59.30 crore
- General corporate purposes: Remaining amount
Company Profile
Airfloa Rail Technology, incorporated in 1998, specializes in manufacturing rolling stock components and interior projects for Indian Railways, as well as the aerospace and defense sectors. The company's product portfolio includes components for high-profile projects such as the Vande Bharat Express, RRTS (Regional Rapid Transit System), and Agra-Kanpur Metro.
Financial Performance
The company has demonstrated strong financial growth:
| Metric | Previous Year | Latest Year |
|---|---|---|
| Revenue | 122.90 | 192.70 |
| Profit After Tax | 14.20 | 25.60 |
All figures in Rs crore
IPO Management
GYR Capital Advisors is serving as the book-running lead manager for the IPO, while Kfin Technologies has been appointed as the registrar.
The strong grey market premium indicates high investor interest in Airfloa Rail Technology's public offering. However, it's important to note that grey market premiums are unofficial and subject to change. Investors are advised to make decisions based on the company's fundamentals and their own research.
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