Ashish Kacholia, Vikas Khemani pick up stake in IPO-bound Aeroflex Industries

Ahead of the launch of its initial public offering (IPO), a host of marquee investors have picked up stakes in Aeroflex Industries, a homegrown flexible flow solutions player, suggested two filings by its promoter. The company is likely to announce its Rs 350-crore primary stake sale soon.

Sat Industries, the promoter-shareholder of Aeroflex, in two separate exchange filings, said that it has sold a total of 7.6 per cent stake in the IPO-bound player to select investors in the last one month and garnered a total of Rs 76.14 crore.

Sat Industries sold 40,63,337 equity shares, or a 3.55 per cent stake, in its material subsidiary, Aeroflex Industries on Tuesday, June 13. It has sold a stake to Carnelian Structural Fund managed by Vikas Khemani, Jagdish Master, Rosy Blue India, VPK Global Ventures Fund, Samedh Trinity Partners, Shyam Agarwal, Mitul Prafulbhai Mehta and Rajnik Savaliya for Rs 35.58 crore.

Prior to this, Sat Industries had sold a 4.05 per cent stake in Aeroflex Industries to Ashish Kacholia and Bengal Finance and Investments for an aggregate amount of Rs 40.56 Crores on May 15, 2023. The company did not disclose the number of shares sold in the exchange filing.

The company has avoided the issue price for the stake sale or the total number of shares sold so far. Also, the company's DRHP, filed in March 2023, does not contemplate any pre-IPO placement to be carried out by its lead manager. Pantomath Capital Advisors is the sole manager of the issue.

Aeroflex exports make-in-India metallic flexible flow solutions to more than 85 countries, as exports account for more than 80 per cent of the company’s total revenues. The company has an asset-light value-added business model. Also, metallic flexible flow solutions possess high entry and exit barriers. Aeroflex’s metallic flexible flow solutions replace rubber and polymer pipes and tubes and thus make a significant positive environmental impact. Its Products have multi-purpose use, catering to numerous industry segments including fire-fighting, aviation, space, defence, semiconductors, electric vehicles, oil & gas and chemicals among others.