Ahmedabad based Aeron Composite Ltd leading company engaged in manufacturing and supply of fibre glass reinforced polymer products is planning to raise up to Rs. 56.10 crore from its SME public issue.
As per the release, The company has received approval to launch its public issue on NSE Emerge Platform of National Stock Exchange. The public issue opens for subscription on August 28 and closes on August 30. Out of the proceeds of the public issue, Rs. 39 crore will be utilized to fund the capital expenditure requirements towards setting up of a manufacturing unit at Mehsana, Gujarat and general corporate purpose. Hem Securities Ltd is the book running lead manager of the issue.
The initial public offering of Rs. 56.10 crore, comprises a fresh issue of 44.88 lakh equity shares of face value Rs. 10 each. Company has finalized a price band of Rs. 121-125 per equity share for the public issue. The minimum lot size for retail investors is 1,000 shares amounting to minimum investment of Rs 1,25,000 at the upper price band of Rs. 125 per share. Retail investor quota for the IPO is kept at not less than 35% of the net offer, HNI quota is kept at not less than 15% of the offer and QIB portion is kept at not more than 50% of the offer.
Company has reported excellent operational and financial performance over years. The Company has witnessed a multi-fold growth in revenue and profitability over the years. For FY23-24 (till February, 2024), company has reported net profit of Rs. 9.42 crore (PAT Margin 5.26%), EBITDA of Rs. 14.27 crore (EBITDA margin 7.97%) and revenue from operations of Rs. 179.14 crore. For Full year of FY2022-23, the company had reported net profit of Rs. 6.61 crore (PAT Margin 3.69%), EBITDA of Rs. 9.82 crore (EBITDA margin 5.48%) and revenue from operations of Rs. 179.38 crore.
As on February 2024, Net Worth of the company was reported at Rs. 34.78 crore, Reserves & Surplus at Rs. 33.21 crore and Asset base of Rs. 99.79 crore. As on Feb 2024, ROE of the company was 31.33%, ROCE at 29.67% and RONW at 27.09% with a healthy debt/equity ratio of 0.35 times. Promoter Group shareholding in the company will be 73.63% post the public issue. Shares of the company will be listed on NSE’s Emerge platform.