Airfloa Rail Technology, the manufacturer of components for rolling stock used by Indian Railways, plans to raise ₹91 crore through initial public offering on the BSE SME platform.
The company will issue 65.07 lakh equity shares in the price band of ₹133 – ₹140 a share. The lot size has been fixed at 1,000 equity shares.
The net proceeds from the IPO will be used for capital expenditure towards purchase of machinery and equipment, partial repayment of borrowing, funding working capital and general corporate purposes.
The anchor portion will open on Wednesday.
GYR Capital Advisors has been appointed as lead manager while KFIN Technologies will be the registrar.
The company has presence across Indian Railways, aerospace and defence sectors.
Venkatesan Dakshinamoorthy, Chairman & Managing Director, Airfloa Rail Technology said with a strong foundation built over two decades and a robust order book of ₹376 crore the company is poised to embark on its next phase of growth through this IPO.
The IPO proceeds will further strengthen the company’s manufacturing infrastructure, enhance capacity utilization, support working capital requirements and improve financial stability, he said.
With robust infrastructure investments, and rising demand for advanced train interiors and rolling stock, coupled with the significant growth potential in India’s aerospace and defence markets, the company is well-positioned to diversify revenue base, he added.
Mohit Baid, Director, GYR Capital Advisors said the company will benefit from the unprecedented capex cycle of the Indian Railway and rolling stock industry besides a strong policy focus on modernisation, electrification and Make in India initiatives.