New Delhi, September 18 (HS)
Airfloa Rail Technologies, a company engaged in manufacturing critical components for the Integral Coach Factory as well as the aerospace and defense sectors, made a stellar entry into the stock market on Thursday, delighting its IPO investors.
The company’s shares, issued at ₹140 in the IPO, were listed on the BSE SME platform at ₹266 — a 90 percent premium over the issue price. Heavy buying soon after listing pushed the stock to its upper circuit limit of ₹279.30, almost doubling investor wealth on the very first day of trading.
IPO Details and Subscription
Airfloa Rail Technologies had launched its ₹91.10 crore IPO between September 11 and 15, which received an overwhelming response from investors. The issue was oversubscribed 301.52 times overall.
-The Qualified Institutional Buyers (QIB) portion saw 214.65-times subscription.
-The Non-Institutional Investors (NII) category was subscribed 349.88 times.
-The Retail Investors’ portion garnered 330.31-times subscription.
-Under the IPO, the company issued 65.07 lakh fresh equity shares of face value ₹10 each.
Utilization of IPO Proceeds
The funds raised through the issue will be used for the purchase of machinery and new equipment, repayment of existing debt, meeting working capital requirements, and other general corporate purposes.
Financial Performance
According to the company’s prospectus, Airfloa Rail Technologies has reported consistent financial growth:
-Net profit rose from ₹1.49 crore in FY 2022–23 to ₹14.23 crore in FY 2023–24.
-Revenue increased from ₹95.33 crore in FY 2022–23 to ₹122.87 crore in FY 2023–24.
-Debt levels also rose slightly, from ₹60.22 crore at the end of FY 2022–23 to ₹63.80 crore in FY 2023–24.
-Reserves and surplus strengthened, climbing from ₹36.75 crore in FY 2022–23 to ₹50.99 crore in FY 2023–24.
The impressive financial trajectory, coupled with overwhelming investor interest, has positioned Airfloa Rail Technologies as one of the most promising new entrants in the SME market.
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Hindusthan Samachar / Jun Sarkar
