Introduction
Aeron Composite Limited, a key player in the fiber-reinforced polymer (FRP) industry, is set to launch its Initial Public Offering (IPO) from August 28, 2024, to August 30, 2024. The company specializes in manufacturing and supplying FRP products for various industrial applications, and it serves over 800 customers globally, including prominent entities like ONGC, NTPC, and Larsen & Toubro. This IPO is drawing significant attention from investors, particularly in the SME segment.
IPO Details
- Issue Dates: August 28, 2024, to August 30, 2024
- Price Band: ₹121 to ₹125 per share
- Lot Size: 1,000 shares (Minimum investment ₹1,25,000)
- Issue Size: ₹54.30 – ₹56.10 crore, with no offer for sale, comprising a fresh issue of 44.88 lakh shares.
- Listing: Expected to be on NSE SME platform on September 4, 2024.
Financial Performance
Aeron Composite has shown a strong financial performance over the past few years:
- Revenue: Grew from ₹78.82 crore in FY 2021 to ₹179.14 crore in the 11 months of FY 2024.
- Net Income: Increased from ₹2.55 crore in FY 2021 to ₹9.42 crore in the 11 months of FY 2024.
- Key Ratios: The company’s Return on Net Worth (RONW) and Return on Capital Employed (ROCE) have been consistently improving, indicating efficient use of equity and capital.
Grey Market Premium (GMP)
As of the latest updates, the Grey Market Premium (GMP) for Aeron Composite IPO is fluctuating between ₹10 to ₹20. However, investors should exercise caution, as GMP is speculative and does not guarantee the listing price.
Subscription and Allotment
The IPO has garnered significant interest, with the subscription figures showing strong demand from retail investors. The allotment is expected to be finalized on September 2, 2024, and investors can check their allotment status on the registrar’s website.
Conclusion
Aeron Composite’s IPO presents an intriguing opportunity, particularly for those interested in the SME sector. Its strong financials and established market presence make it a noteworthy contender in the IPO landscape. However, as with any investment, potential investors should carefully consider the risks, including the speculative nature of GMP.
