Aeroflex Industries acquires 79,061 sq ft land for expansion

Aeroflex Industries expansion plans: Aeroflex Industries on Wednesday announced that it has purchased a land parcel measuring 79,061 square feet adjoining its present factory location for Rs 5.11 crore. The Mumbai-based company said that the additional land will help in the expansion of its capacity. Furthermore, Aeroflex Industries plans to increase its installed capacity from 11 million metres per annum to 13.5 million metres per annum by modernisation and upgradation of machines and importing new machinery and equipment. 

“We also plan to add automated and robotic assembly lines in a phased manner. This addition of capacity is expected to be completed before March 31, 2024, with an investment of approximately Rs 48 crore which will be funded through internal accruals,” Aeroflex Industries said via an exchange filing.

Stellar market debut

Aeroflex Industries shares made an impressive debut on the stock exchanges, listing with a significant premium of 83 per cent over its issue price of Rs 108, on August 31. The stock started trading at Rs 197.40 on the BSE, marking a substantial increase of 82.8 per cent, while on the NSE, it debuted at Rs 190, indicating a notable uptick of 76 per cent.

Aeroflex Industries had successfully raised Rs 351 crore through its initial public offering (IPO), which was open for subscription from August 22 to August 24. The company offered its shares at a price range of Rs 102 to Rs 108 apiece, and interested investors could bid for a minimum of 130 equity shares, with increments in multiples thereof.

Its IPO witnessed a subscription rate of 97.11 times. Qualified institutional bidders showed overwhelming interest, oversubscribing their portion by an astounding 194.73 times. Non-institutional investors also participated enthusiastically, oversubscribing their segment by 126.13 times. Retail investors demonstrated significant demand, subscribing to their allocated quota 34.41 times.

The stocks of the company settled over 0.50 per cent higher at Rs 154.50 per share, when the market closed today, September 20, according to BSE.