Business

8 months ago

Aeroflex Industries IPO: Can it deliver?

Aeroflex Industries (symbolic picture)
Aeroflex Industries (symbolic picture)

 

IIE Digital Desk : Aeroflex Industries, a manufacturer of aerospace components, is set to launch its initial public offering (IPO) on August 22, 2023. The company is offering 32,500,000 shares at a price band of Rs 102-108 per share. The IPO is expected to raise around Rs 351 crore for the company. The proceeds will be used to fund its working capital requirements and for expansion of its manufacturing facilities. Aeroflex Industries has a strong track record of growth. The company's revenue has grown at a compound annual growth rate (CAGR) of 15% over the past five years.

The company is also well-positioned to benefit from the growing demand for aerospace components. The global aerospace industry is expected to grow at a CAGR of 4% over the next five years. However, there are some risks associated with the IPO. The company is facing stiff competition from global players. Additionally, the aerospace industry is cyclical and could be affected by economic slowdowns. Overall, Aeroflex Industries is a well-run company with a strong growth potential. The IPO is likely to be successful, but investors should be aware of the risks involved.


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