Aeron Composite's IPO Receives Mild Response On Opening Day

Aeron Composite Ltd. launched its Initial Public Offering on Wednesday. At of the end of the opening day, the issue was oversubscribed 1.6 times as per data on NSE Emerge.

• Qualified Institutional Buyers: 0.4 times

• Foreign Institutional Investors: 0.2 times

• Non Institutional Investors: 0.2 times

• Retail Individual Investors: 0.91 times

The IPO is set to close on August 30, 2024 and offers a fresh issue of 4,488,000 equity shares. This includes a market maker portion of 228,000 equity shares and an anchor allocation of 1,214,000 equity shares.

The shares are priced between Rs. 121 and Rs. 125 per equity share, with a face value of Rs. 10 each. The bid lot for the IPO is 1,000 equity shares, and investors can place bids in multiples of this lot size.

The allotment for the IPO is anticipated to be finalised on September 2. The shares are expected to be listed on the NSE SME with a tentative listing date set for Wednesday, September 4.

The IPO is a 100% book building issue, with the book running lead manager being Hem Securities Limited and Axis Bank Limited serving as the sponsor bank. The registrar for the IPO is Maashitla Securities Private Limited.

The company specialises in producing a range of Fiber Reinforced Polymer products, including FRP Pultruded Products, FRP Moulded Gratings, and FRP Rods, designed for diverse industrial applications.

Their service offering encompasses all aspects from conceptual design and prototype development to testing, manufacturing, logistics, installation, and after-sales support.

The company intends to utilise the net proceeds from the IPO to two achieve key objectives. Primarily, the funds will be directed towards capital expenditure for establishing an additional manufacturing unit, enhancing production capabilities. Additionally, a portion of the proceeds will be allocated for general corporate purposes, which may include various operational and strategic needs.