Aeron Composite IPO: Find key details on the IPO date, price, allotment, and more in our comprehensive guide.
Aeron Composite has published that its IPO is going to be open on 28th August 2024 and will end on 30th August. It specializes in manufacturing advanced composite materials for aerospace, automotive, and industrial applications. It aims to gather INR 56.10 crore with a price range of INR 121 to INR 125 per share and a market lot of 1,000 shares.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Aeron Composite IPO
- Allotment Dates for Aeron Composite IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Registrar for Aeron Composite IPO
- Offer Lead Manager
- Company Address
Company Overview
Aeron Composite is a prominent Indian manufacturer of advanced composite materials for aerospace, automotive, and industrial applications. The company’s portfolio includes specialty composites, including carbon fiber and fiberglass, to create high-strength, light, and durable composite materials for applications that require reinforcement. Aeron Composite focuses on research and quality, utilizing state-of-the-art technologies to meet the specific needs of clients operating in high-stake environments. As a quality-oriented and sustainability-focused company, the firm assists customers in enhancing performance and reducing the cost of their products to advance modern engineering and manufacturing solutions.
Company Strategy
The corporate strategy of Aeron Composite focuses on development in manufacturing facilities and increasing productivity to produce more Fiber Reinforced Plastic (FRP) products to cater to the growing market demands. The company intends to open a new unit for manufacturing with the help of IPO proceeds to increase production and financial leverage. Its business model is based on product development and client customization, providing high-quality, anti-corrosive FRP solutions for production and utilities including oil and gas and water and wastewater treatment sectors. With the help of modern equipment and focusing on quality, the company wants to improve its position in the market, satisfying various customers’ demands and gaining long-term development.
Details on IPO Date and Price Band
| IPO Open Date: | August 28, 2024 |
| IPO Close Date: | August 30, 2024 |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 121 to INR 125 Per Share |
| Issue Size: | Approx INR 56.10 Crores |
| Fresh Issue: | Approx INR 56.10 Crores |
| Offer for Sale: | NA |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective:
The IPO intends to establish new lines of business to fund the capital expenditure for setting up an additional manufacturing facility that will help increase production capacity and cater to the expanding market need. Moreover, the remaining amount of the share will be utilized for general corporate purposes that give flexibility to the company for other opportunities and requirements. This funding will allow Aeron Composite to increase the scale of its manufacturing plans and enhance the efficiency of production and general business development while creating a stable background for future growth and creating additional value.
Market Lot Information on Aeron Composite IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,000 shares) for INR 1,25,000
- Retail Maximum: 1 lot (1,000 shares) for INR 1,25,000
- S-HNI Minimum: 2 lots (2,000 shares) for INR 2,50,000
Allotment Dates for Aeron Composite IPO
Aeron Composite IPO open date is August 28 and the IPO close date is August 30. The IPO allotment date is September 2 and the listing date is September 4.
| IPO Open Date: | August 28, 2024 |
| IPO Close Date: | August 30, 2024 |
| Basis of Allotment: | September 2, 2024 |
| Refunds: | September 3, 2024 |
| Credit to Demat Account: | September 3, 2024 |
| IPO Listing Date: | September 4, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Aeron Composite. On the other hand, the IPO forms are also available for download on the NSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | Profit After Tax | Assets |
| 2021 | 79.06 | 75.41 | 2.55 | 43.60 |
| 2022 | 109.93 | 104.91 | 3.62 | 60.63 |
| 2023 | 181.99 | 172.43 | 6.61 | 69.10 |
| Feb 2024 | 180.80 | 167.44 | 9.42 | 99.79 |
Aeron Composite has shown impressive financial growth from 2021 to February 2024. Revenue surged from INR 79.06 crores in 2021 to INR 180.80 crores by February 2024, highlighting robust business expansion. Expenses increased proportionately, from INR 75.41 crores in 2021 to INR 167.44 crores. Profit after tax grew significantly from INR 2.55 crores in 2021 to INR 9.42 crores, reflecting improved profitability. Assets rose substantially from INR 43.60 crores to INR 99.79 crores, indicating a strong financial position and capacity for further growth. Overall, Aeron Composite demonstrates solid performance and operational efficiency.
IPO Valuation (FY 2023)
The company’s EPS stands at a value of INR 5.33 with a Return on Net Worth (RoNW) of 26.07% and a Net Asset Value (NAV) per share of INR 20.44 in the financial year 2023. The IPO price band range of INR 121 to INR 125 per equity share to raise INR 56.10 crores and a face value of INR 10 per share to boost production capacity and support general corporate needs, enhancing Aeron Composite’s growth and operational flexibility.
| Earnings Per Share (EPS): | INR 5.33 |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 26.07% |
| Net Asset Value (NAV): | INR 20.44 |
Offer Lead Manager
Hem Securities Limited
Hem Securities Limited is a leading financial services company categorized in the investment advisory domain and operates from India. It was established in 1995 and it deals in a wide range of products including equities, commodities, Investment banking, portfolio management, and wealth management. Hem Securities is engaged in offering consultancy services to small traders as well as large corporates. The firm prides itself on offering customer-oriented services and a commitment to use sophisticated technology to serve clients with a complete package of innovative financial services to help investors experience growth.
Conclusion
The initial public offering (IPO) of Aeron Composite presents a noteworthy prospect for investors. It is scheduled to open on August 28, 2024, and close on August 30, 2024. With a price range of INR 121 to INR 125 per share, the company hopes to raise INR 56.10 crore. Aeron Composite is well-positioned for future growth thanks to its strong financial performance and strategic focus on increasing its manufacturing capacity. Potential investors will find this initial public offering (IPO) to be an attractive opportunity to participate in a business that is well-positioned to increase both its market share and operational effectiveness.
