SME IPO listing: Aeron Composite share price hits upper circuit after listing at a 20% premium; check details

SME IPO listing: After the successful subscription of its initial public offering (IPO), shares of Aeron Composite debuted with a decent premium of ₹25, or 20 per cent, on NSE SME on Wednesday, September 4. Aeron Composite share price opened at ₹150 against the issue price of ₹125. The stock rose further after opening, as much as 26 per cent with respect to the issue price, to hit its upper price band of ₹157.50 during the session.

Aeron Composite IPO detials

The ₹56.10 crore Aeron Composite IPO opened for public subscription on Wednesday, August 28 and concluded on Friday, August 30. The issue, which was a fresh issue of 44.88 lakh shares, had a price band of ₹121 to ₹125 per share. The company secured ₹15.17 crore from anchor investors by allocating 12,14,000 equity shares at ₹125 per share.

The company plans to use the net proceeds of the offering for general corporate purposes and to cover the capital expenditures necessary to establish an additional production unit.

The company saw an overall subscription of about 41 times, receiving bids for 11.6 crore shares against 28.36 lakh shares offered. The retail portion was subscribed nearly 34 times, receiving bids for about 4.8 crore shares against 14.2 lakh shares offered.

The firm produces and distributes Fiber Glass Reinforce Polymer (FRP) products, which are designed for a range of industrial applications and include FRP rods, FRP moulded gratings, and FRP pultruded items.

For FY21, its profit after tax (PAT) stood at ₹2.6 crore, which rose to ₹3.62 crore in FY22 and ₹6.61 crore in FY23. In the last financial year till February 29, 2024, the company's PAT was ₹9.42 crore.

Revenue from operations for FY21 came at ₹78.82 crore, for FY22 at ₹108.34 crore and for FY23 at ₹179.38 crore. Till 29 February in FY24, the company's revenue from operations stood at ₹179.14 crore.

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