Aeroflex shines bright

Aeroflex Industries is a new listing on the bourses; the stock had a fantastic debut – as against IPO price of Rs.108, it got listed on the BSE at Rs.197, a jaw-dropping premium of 82%. The stock is currently trading at Rs.170m levels.

Backed by investor, Ashish Kacholia, the issue was subscribed 97.11 times of which the lions share was taken up by Institutional investors at 194.73 times, while HNIs was at 126.13 times and the retail portion at 34.41 times.

The company manufactures stainless steel corrugated flexible hoses and assemblies for industrial use, in oil and gas, refinery, steel, chemical sectors, as well as emerging sectors like fire sprinkler, solar, electric vehicle, semiconductors, defence etc. It has 1,700+ SKUs with stainless steel flexible flow solutions being an alternative for rubber and polymer.

In our IPO Analysis, we had concluded, “While growth visibility remains, valuation does not leave anything on the table and track record does not instil comfort. Hence, this IPO is as ‘avoid’."