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Company Background

Aeroflex Industries Limited (AIL) is a market leader in the field of metallic flexible flow solutions, offering a comprehensive range of products including corrugated stainless steel hoses, interlock flexible metal hoses, PTFE hoses, composite hoses, and stainless steel hose assemblies. It offers extensive and diverse product portfolio, the company has over 1,700 distinct SKUs as of January 31, 2023. These advanced solutions find applications across a spectrum of industries including steel, oil & gas, refineries, fire sprinklers, metal & mining, and aerospace & defense.

Objectives of the Issue

* Repayment of outstanding secured borrowings – Rs. 32 Crores.

* Funding working capital requirements – Rs. 84 Crores

* General corporate purposes and Inorganic Acquisitions – Balance

* Offer for Sale (OFS) by the selling shareholders of 1,75,00,000 shares. The company shall not receive any proceeds from the offer.

Key Points

* AIL has historically derived a significant portion of its revenue from exports, indicating its global reach and ability to capture international market share. With 51 countries served during the FY23, Aeroflex has established itself as a key player in the global export market.

* Despite a decline in FY21, AIL has showcased a consistent trend of revenue growth over the past years, culminating in a total Revenue of Rs. 269.48 Crores for FY2022 – 2023. The revenue is further expected to grow at a CAGR of 35 – 40% by FY26.

* AIL operates in a niche segment, offering flexible flow solutions to diverse industries. These products serve to critical requirement of conventional industries with global clientele.

* AIL has an extensive product pipeline of over 55 products under development, which highlights its proactive approach to meeting evolving customer demands and fostering potential revenue streams. The presence of significant entry barriers helps the company to act proactively and induce innovation through continuous investments in new products and design.

* The inclusion of SAT Industries as a promoter enhances AIL’s strategic alliances and benefits from their expertise in expanding a variety of businesses.  Aeroflex Industries (AIL) has exhibited impressive financial growth and established strong client relationships, holding a dominant market position in India. With the support of seasoned promoters, prominent HNI investors, and a forwardlooking strategy, AIL is excellently poised for enduring success within the burgeoning Flexible Flow Solutions sector. We recommend SUBSCRIBE to the issue for long term.

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