Aeron Composite IPO booked over 13x on Day 3 so far, retail, NII portion oversubscribed; check GMP, subscription status

The IPO of Aeron Composite began subscription on Wednesday, August 28, and will conclude on Friday, August 30. Aeron Composite IPO shares are priced between ₹121 to ₹125, with a face value of ₹10. There are multiple shares available in this range, and a minimum bid of 1000 shares is required. Aeron Composite Ltd secured ₹15.17 crore from anchor investors by allocating 12,14,000 equity shares at ₹125 per share.

The firm produces and distributes Fiber Glass Reinforce Polymer (FRP) products, which are designed for a range of industrial applications and include FRP rods, FRP molded gratings, and FRP pultruded items.

Conceptual design, prototype development, testing, production, logistical assistance, installation, and after-sale support are all included in the company's full solution offerings. A fibre reinforced polymer matrix, such as resins, with fibres like aramid, carbon, or fiberglass inserted is what makes up a FRP product. In addition to its electrical and thermal non-conductivity, this combination is lightweight, resistant to corrosion and chemicals, easy to fabricate, and has excellent strength.

There are no listed firms in India that do business in a similar manner to theirs, according to the red herring prospectus. Consequently, it is not feasible to present an industry-wide comparison of key performance metrics with their organisation.

The business serves more than 800 clients worldwide and makes money through a combination of domestic and foreign activities in more than 30 countries.

For the quarter ending February 29, 2024, and the fiscal years ending 2023, 2022, and 2021, respectively, the company's total revenue from export sales was 56.16%, 52.38%, 34.71%, and 36.37%, while its total revenue from domestic sales was 43.84%, 47.62%, 65.29%, and 63.63%. At now, they are catering to many industrial sectors including communications, oil and gas, refineries, renewable energy, chemicals, and so forth.

Aeron Composite IPO subscription status

Aeron Composite IPO subscription status is 13.69 times, on day 3, so far. 

The retail portion was subscribed 16.63 times, and NII portion was booked 13.37 times. Qualified Institutions Buyers are booked 8.66 times.

The company has received bids for 3,88,14,000 shares against 28,36,000 shares on offer, 13:45 IST, according to data on chittorgarh.com

Aeron Composite IPO subscription status was 2.59 times, on day 1, and the issue was booked 5.19 times on the second bidding day.

Aeron Composite IPO details

The Aeron Composite IPO, valued ₹56.10 crore, includes a fresh issuance of 4,488,000 equity shares with a face value of ₹10. There is no "offer for sale" component.

The company plans to use the net proceeds of the offering for general corporate purposes and to cover the capital expenditures necessary to establish an additional production unit.

The registrar for the Aeron Composite IPO is Maashitla Securities Private Limited, while the book running lead manager is Hem Securities Limited. Hem Finlease is the market maker for the Aeron Composite IPO.

Aeron Composite IPO GMP today

Aeron Composite IPO grey market price is +25. This indicates Aeron Composite share price were trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Aeron Composite share price was indicated at ₹150 apiece, which is 20% higher than the IPO price of ₹125.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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