Airfloa Rail Technology IPO Opens For Subscription: Latest GMP Signals 118% Listing Gain, Check Key Details

Airfloa Rail Technology Ltd. launched its initial public offering (IPO) on Thursday. The company manufactures components for Indian Railways’ rolling stock through units such as the Integral Coach Factory (ICF) and other coach factories.

As the BSE SME issue opens for subscription, here’s a look at the grey market premium (GMP) and other important details about the Airfloa Rail Technology IPO.

According to InvestorGain, the latest GMP for Airfloa Rail Technology IPO stood at Rs 165 per share, at 8:35 a.m. on Sept. 11. Considering the upper end of the price band of Rs 140, the IPO’s estimated listing price stands at Rs 305 (cap price + today’s GMP), reflecting an expected listing gain of 117.86% per share.

Note: GMP does not represent official data and is based on speculation.

Airfloa Rail Technology IPO is a book-building issue worth Rs 91.1 crore, consisting entirely of a fresh issuance of 65 lakh shares.

The price band for the Airfloa Rail Technology IPO has been fixed at Rs 133 to Rs 140 per share. The IPO lot size comprises 1,000 shares.  For retail investors, the minimum investment at the upper price band works out to Rs 2.8 lakh, for at least 2,000 shares. High Net-worth Individuals (HNIs) are required to bid for at least three lots, or 3,000 shares, translating to a minimum investment of Rs 4.20 lakh.

The subscription window for the Airfloa Rail Technology IPO will close on Sept. 15. The tentative date for allotment of shares is Sept. 16. The company will initiate refunds and credit of shares to demat accounts on Sept. 17.

Airfloa Rail Technology shares are tentatively scheduled to be listed on the BSE SME platform on Sept. 18.

GYR Capital Advisors Pvt. is the book-running lead manager, while Kfin Technologies Ltd. has been appointed registrar. The issue’s market maker is Giriraj Stock Broking Pvt.

Airfloa Rail Technology Ltd., founded in December 1998, manufactures rolling stock components and turnkey interiors for Indian Railways. It has delivered components and interior projects for a wide range of systems, including Sri Lankan DEMU, Mainline Coaches, Agra-Kanpur Metro, RRTS, Vistadome Coaches and the Vande Bharat Express. The company also supplies precision parts to aerospace and defence, including AMCA ground simulators and artillery tank bodies.

Airfloa Rail Technology Ltd. will use the net proceeds from the IPO for capital expenditure on machinery and equipment. A portion will be allocated toward repaying debt and meeting working capital requirements. A part of the proceeds will also be used for general corporate purposes.

According to the company’s draft red herring prospectus (DRHP), Airfloa Rail Technology reported revenue from operations of Rs 119.3 crore for the year ended March 31, 2024, compared to Rs 95.17 crore in the previous financial year. Its net profit for the year stood at Rs 14.23 crore in FY24, against Rs 1.49 crore in FY23.

In FY25, the company’s total income stood at Rs 192.66 crore, with a net profit of Rs 25.55 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.