Aeron Composite IPO opens today: Check all details about this SME issue

The initial public offering (IPO) of Aeron Composite opens for bidding today, on Wednesday, August 28 and the issue can be subscribed until Friday, August 30. The company is offering its shares in the price band of Rs 121-125 per share with a lot size of 1,000 equity shares.
 

Aeron Composite was established in 2011 and is engaged in the manufacture and supply of glass fibre reinforced polymer products i.e. FRP products including FRP Pultruded Products, FRP Moulded Gratings & FRP Rods tailored for various industrial applications.
 

The SME player is looking to raise a total of Rs 56.10 crore from its IPO, which entirely includes a fresh share sale of 44.88 lakh equity shares. The net proceeds from the issue shall be utilized towards funding the capital expenditure requirements for setting up of an additional manufacturing unit and general corporate purposes.
 

Retail investors can apply for a single lot only, that is 1,000 shares, amounting to Rs 1.25 lakh per lot. Other investors like HNI bidders need to apply for a minimum of two lots, or 2,000 shares, worth Rs 2.5 lakh.
 

Aeron Composite raised a total of Rs 15.18 crore from anchor investors as it allocated 12,14,000 shares at Rs 125 apiece. Its anchor books include names like India Ahead Ventures, NAV Capital, AG Dynamic Funds, Craft Emerging Market Fund, Finavenue Capital Trust, Galaxy Noble Global Opportunities Fund, India Equity Fund, India Max Investment Fund, Steptrade Revolution and Matterhorn India.
 

Ahmedabad-based Aeron Composite offers comprehensive solutions that include conceptual design, prototype development, testing, manufacturing, logistical support, installation and after-sales service. The company's manufacturing facility is located in Saket Industrial Estate and is spread over 26320 square metres.
 

The market maker for Aeron Composite IPO is Hem Finlease, for which 2.28 lakh shares have been reserved as market maker portion. 50 per cent of the net offer has been reserved for qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent of the net offer. Remaining 35 per cent shares shall go to the retail investors of the issue.
 

Hem Securities is the book running lead manager of the Aeron Composite IPO, while Maashitla Securities is the registrar for the issue. Shares of the company shall be listed on NSE's Emerge platform with Wednesday, September 4 as the tentative date of listing.