IPOName: Airfloa Rail Technology IPO; ListingDate: 2025-09-18; IPOSize: ₹91.10 Cr; PriceBand: ₹133–₹140; OpenDate: 2025-09-11; CloseDate: 2025-09-15; LotSize: 1,000; Exchange: BSE SME; Registrar: KFin Technologies; IssueType: Book Built; FaceValue: ₹10;
Airfloa Rail Technology Ltd, a precision components maker for rolling stock, aviation, and defence, will open its SME IPO on September 11, 2025. The ₹91 crore public issue consists entirely of fresh shares and is scheduled to list on BSE SME on September 18.
IPO Snapshot
- Open Date: September 11–15, 2025
- Price Band: ₹133–₹140 per share
- Issue Size: ₹86.5–91.1 Cr via 65.07 lakh shares
- Lot Size: 1,000 shares (₹1.40 lakh minimum) (IPO Central, IPO Premium)
Company & Business
Established in 1998 and based in Tamil Nadu, Airfloa specializes in manufacturing high-precision forged and machined components for rail rolling stock, aerospace, and defense. It also delivers turnkey interior solutions for coaches, including the Vande Bharat, Agra-Kanpur Metro, Vistadome, and more. The company operates two plants near Chennai, backed by ISO 9001, EN 15085-2, and IRIS certifications. Its clients include Indian Railways—ICF, BEML, Bombardier, and more. (IPO Central)
Financial Performance & Order Book
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | P/E (x) | ROE (%) | ROCE (%) | Debt/Equity |
|---|---|---|---|---|---|---|---|
| FY2024 | 119.3 | 14.23 | 9.50 | 14–14.7 | 25.4% | 26.4% | 1.14 |
As of August 28, 2025, the company has an order book of ₹375.9 Cr, offering strong revenue visibility. Its FY25 profit (~79.6% YoY) and revenue growth (~61.3%) indicate a healthy growth trajectory. (Moneycontrol)
Use of Proceeds
- Machinery & equipment: ₹13.7 Cr
- Working capital: ₹59.3 Cr
- Debt repayment: ₹6 Cr
- General corporate purposes: Remaining funds
Strengths & Growth Catalysts
- Long-standing railway client relationships with ICF and others
- Strong order book of ₹375 Cr ensures near-term visibility
- Export potential via existing aerospace/defence clients
- Improving profit margins and ROE as company scales (IPO Central)
Risks & Considerations
- Modest scale and high debt-to-equity ratio (~1.14x)
- Single-region manufacturing may affect supply chain flexibility
- SME IPOs are often illiquid and volatile—GMP hype may not reflect fundamentals
Reddit caution:
> "SME IPOs can be tricky... Fake GMPs drive oversubscription... then the crash 20–50% gone." > — user discussing SME IPO volatility and fake GMPs. (r/IPO_India)
Final Take
Airfloa Rail Technology’s IPO offers investors exposure to India's robust railway and transport infrastructure growth. Its strong order book and expanding client base provide confidence—but SME limitations like liquidity and GMP speculations warrant caution. Ideal for investors comfortable with small caps and infrastructure trends.
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