SME IPO with 120% GMP opening tomorrow. 10 important things to know

Airfloa Rail Technology, a supplier of the Indian Railways, has been set to open its RS 91 Crore IPO for subscription on 11 September. The book-built number will be closed on 15 September, with a list planned for September 18 on the BSE SME platform. The IPO has already generated Buzz in the non-listed market, with the Gray Market Premium (GMP) that rises one day before the IPO, which suggests that a strong interest in the list days. Here are ten important details that investors need to know:

Problem size

The IPO is a new issue of 65.1 Lakh shares that merge into RS 91.1 Crore. There is no supply for sale component.

Prize strap

Shares are offered in the band of RS 133-140 each. At the top band, the company has market capitalization after the edition of approximately RS 335.6 Crore.

Allocation and list dates

The IPO will open on September 11 and closes on September 15. The allocation is expected on September 16, planned for September 18.

GMP

The problem contains a GMP of approximately 120%, indicating that shares can be mentioned on more than RS 300 at the top price band of RS 140.

Also read: IPO from the city company opens for bidding; GMP at 35%. Do you have to subscribe or skip yourself?

Objects of the problem

The proceeds will be used for capital expenditure (RS 13.7 Crore), repayment of loans (RS 6 Crore), working capital needs (RS 59.3 Crore) and general business purposes.

Company profile

Recorded in 1998, Airfloa -Railway technology produces rolling stock components and interior projects for Indian railways. It also serves the space and defense sectors. The portfolio includes seats, climate control systems, doors and turnkey interiors for projects such as Vande Bharat Express, RRTs and Agra-Kanpur Metro.

Customers and projects

The company has held contracts for Integral Coach Factory, Sri Lankan Demu, Vistadome Coaches and Artillery Tank Bodies for Defense.

Financial performance

Turnover grew to RS 192.7 Crore in FY25 of RS 122.9 Crore in FY24. The profit after the tax rose to RS 25.6 Crore from RS 14.2 Crore.

Strong points of the company

The company has shown a proactive approach by adapting to modern railway needs, including production components for advanced rolling material shares such as Vande Bharat and metro trains. It is also a prominent player in the Railway OEM industry, supported by more than two decades of experience that improves his competitive advantage.

Lead managers and registrar

Gyr Capital Advisors acted as the lead manager of the book and Kfin Technologies is the registrar of the issue. Giriraj Stock Broking is the market maker for the company.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)