Aeron Composite raises INR 15.17 Cr from Anchor Investors

Ahmedabad: Ahmedabad-based Aeron Composite Ltd, a leading company engaged in manufacturing and supply of fibreglass reinforced polymer products, has raised Rs. 15.17 crore from anchor investors on August 27, a day before its public issue opens for a subscription. The company allotted 12,14,000 equity shares at Rs. 125 per share (including a 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. The company’s Rs. 56.10 crore Public issue of the company opens for subscription on August 28 and closes on August 30. The company’s shares will be listed on the NSE Emerge Platform of the National Stock Exchange.

Out of the proceeds of the public issue, Rs. 39 crores will be utilized to fund the capital expenditure requirements for setting up a manufacturing unit at Mehsana, Gujarat and general corporate purposes. Hem Securities Ltd is the book-running lead manager of the issue.

The initial public offering of Rs. 56.10 crore comprises a fresh issue of 44.88 lakh equity shares of face value of Rs. 10 each. The company has finalized a 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 a minimum investment of Rs 1,25,000 at the upper price band of Rs. 125 per share. The retail investor quota for the IPO is kept at not less than 35% of the net offer, the HNI quota is kept at not less than 15% of the offer, and the QIB portion is kept at not more than 50% of the offer.

 Aeron Composite Ltd

Incorporated in 2011, Aeron Composite Ltd is engaged in the business of manufacturing and supplying 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 fibres such as fibreglass, 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. The company provides comprehensive solutions, which include 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, 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)

The company has reported excellent operational and financial performance over the years. The Company has witnessed a multi-fold growth in revenue and profitability over the years. For FY23-24 (till February 2024), the company has reported a net profit of Rs. 9.42 crore (PAT Margin 5.26%), EBITDA of Rs. 14.27 crore (EBITDA margin 7.97%) and revenue from operations of Rs. 179.14 crore. For the Full year of FY2022-23, the company reported a net profit of Rs. 6.61 crore (PAT Margin 3.69%), EBITDA of Rs. 9.82 crore (EBITDA margin 5.48%) and revenue from operations of Rs. 179.38 crore.

As of February 2024, the company’s net worth was reported at Rs. 34.78 crore, Reserves and surplus at Rs. 33.21 crore and an Asset base of Rs. 99.79 crore. The company’s ROE was 31.33%, ROCE was 29.67%, and RONW was 27.09%, with a healthy debt/equity ratio of 0.35 times. Promoter Group’s shareholding in the company will be 73.63% post the public issue. The company’s shares will be listed on NSE’s Emerge platform.