Aeron Composite Sets Rs 121-125 Price Band for Rs 56-Cr IPO; Public Issue on NSE Emerge Opens Aug 28

Aeron Composite Ltd has set the price range for its SME initial public offering (IPO) between Rs 121 and Rs 125 per share. The IPO will open for subscription on August 28, and the company aims to raise up to Rs 56.10 crore through this offering, as mentioned in a recent statement.

The IPO, which is entirely a fresh issue of 44.88 lakh equity shares, will be listed on the NSE Emerge Platform. Investors can place bids for a minimum of 1,000 shares and in multiples of that number. The subscription period for the IPO will end on August 30.

In terms of allocation, retail investors will have at least 35% of the net offer, non-institutional investors will have at least 15%, and qualified institutional buyers (QIBs) will have up to 50%. The company plans to use the funds raised from the IPO to cover the costs of setting up a new manufacturing unit in Mehsana, Gujarat, and for general corporate purposes.

Aeron Composite Ltd, which manufactures and supplies Fiberglass Reinforced Polymer (FRP) products, reported a revenue of Rs 179.1 crore for the fiscal year 2023-24 (up to February 2024), with a net profit of Rs 9.42 crore. The company exports its products to more than 30 countries.

Hem Securities Ltd is managing the IPO as the sole book-running lead manager, and Maashitla Securities Pvt Ltd is acting as the registrar for the issue.