100% Listing Gains: Matterhorn India Fund Anchors Aeron Composite IPO with a Proven Track Record of Doubling on Listing Day

Promoter Group shareholding in the company will be 73.63 per cent post the public issue

Ahmedabad based Aeron Composite Ltd, leading company engaged in manufacturing and supply of fibre glass reinforced polymer products has raised Rs. 15.17 crore from anchor investors on August 27, a day before its public issue opens for subscription. Company allotted 12,14,000 equity shares at Rs. 125 per share (including share premium of Rs. 115 per share) at its board meeting held on August 27, 2024 in consultation with the Book Running Lead Manager to the Issue. Company’s Rs. 56.10 crore Public issue of the company opens for subscription on August 28 and closes on August 30. Company’s shares will be listed on NSE Emerge Platform of National Stock Exchange.

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 of a fresh issue of 44.88 lakh equity shares of face value Rs. 10 each. Company has finalized 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 per cent of the net offer, HNI quota is kept at not less than 15 per cent of the offer and QIB portion is kept at not more than 50 per cent of the offer.  

Incorporated in the year 2011, Aeron Composite Ltd is engaged in the business of manufacturing and supplying of Fiber Glass Reinforce Polymer Products i.e. FRP products including FRP Pultruded Products, FRP Moulded Gratings & FRP Rods tailored for various industrial applications. FRP product is a composite material consisting of a polymer matrix (resins) reinforced with fibers such as fiberglass, carbon or aramid. This combination offers benefits, including corrosion resistance, chemical resistance, high strength, lightweight properties, electrical and thermal non-conductivity, and ease of fabrication. Company provides comprehensive solution which includes conceptual design, prototype development, testing, manufacturing, logistic support, installation and after sales service. 

The company's manufacturing facility certified by ISO 9001:2015 is located in Saket Industrial Estate at Changodar, Ahmedabad and is spread over 26,320 square metres. The manufacturing facility is certified for the design, manufacture and supply of FRP pultruded products, FRP Handrails, FRP cable trays, FRP fencing, FRP moulded gratings, FRP Cross arm, FRP poles, FRP rods and module mounting structures for solar panels (MMS). Company exports to more than 30 countries

Key Financial Performance:-                                                                                                                                      

Figures in Rs. Crore

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 per cent), EBITDA of Rs. 14.27 crore (EBITDA margin 7.97 per cent) and revenue from operations of Rs. 179.14 crore. For Full year of FY2022-23, company had reported net profit of Rs. 6.61 crore (PAT Margin 3.69 per cent), 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 per cent, ROCE at 29.67% and RONW at 27.09 per cent with a healthy debt/equity ratio of 0.35 times. Promoter Group shareholding in the company will be 73.63 per cent post the public issue. Shares of the company will be listed on NSE’s Emerge platform.   

Matterhorn India Fund Named Anchor Investor in Aeron Composite IPO: 100 per cent Listing Gains in Previous IPOs Positron Energy and Deepak Chemtex

Disclaimer: The article is for informational purposes only and not investment advice.