Ahmedabad-based Aeron Composite raises Rs 15.17 crore from anchor investors

Fibreglass reinforced polymer products supplier Aeron Composite Ltd has said it has raised Rs 15.17 crore from the anchor investors.

The Ahmedabad-based company has allotted 1,214,000 equity shares to as many as 10 fund schemes at Rs 125 per share, the upper end of its IPO price band, Aeron Composite said in a statement.

India Ahead Venture Fund, Nav Capital VCC, AG Dynamic Funds Limited, Craft Emerging Market Fund PCC, Finavenue Capital Trust and Galaxy Noble Global Opportunities Fund PCC are among the anchor investors, it added.

The company's Initial Public Offering (IPO) to raise a total of Rs 56.10 crore opened for subscription on the NSE Emerge platform of the National Stock Exchange. The issue will close for subscription on August 30. Investors can bid for a minimum of 1,000 shares and in multiples thereof.

The company has fixed the price band at Rs 121-125 per share for public offer which is entirely a fresh issue of 4.488 million equity shares.

The retail investor quota for the IPO is kept at not less than 35 per cent of the net offer, the HNI quota is kept at not less than 15 per cent of the offer and the QIB portion is kept at not more than 50 per cent of the offer.

The company has proposed to utilise funds of around Rs 39 crore raised through the issue for funding the capital expenditure requirements towards setting up an additional manufacturing unit at Mehsana, Gujarat and general corporate purposes.

For FY2023-24 (till February 2024) company reported revenue of Rs 179.1 crore and a net profit of Rs 9.42 crore. Its revenue was Rs 179.38 crore in 2022-23 and its profit was Rs 6.61 crore.

Incorporated in the year 2011, Aeron Composite Ltd is engaged in the business of manufacturing and supplying of Fiberglass Reinforce Polymer Products.