Airfloa Rail Technology IPO Overview
Airfloa Rail Technology Limited, a key player in railway
rolling stock and components manufacturing, is launching its fresh equity IPO
to raise ₹91.10 crore on the BSE SME platform. The IPO price band is set
between ₹133 to ₹140 per share, with a minimum lot size of 1,000 shares. Strong
investor interest is reflected in the grey market premium nearing 118% over the
issue price.
The company services prestigious projects like Vande Bharat
Express, Agra-Kanpur Metro, and is well-positioned in India's expanding rail
modernization and metro sectors. With a confirmed order book of ₹376 crore as
of August 2025, Airfloa shows promising revenue visibility beyond the IPO.
IPO Key Dates and Subscription
|
Event |
Date |
|
IPO Open Date |
September 11, 2025 |
|
IPO Close Date |
September 15, 2025 |
|
Basis of Allotment |
September 16, 2025 |
|
Refunds Initiated |
September 17, 2025 |
|
Share Credit |
September 17, 2025 |
|
Listing Date |
September 18, 2025 |
IPO Details
|
Detail |
Information |
|
Issue Size |
₹91.10 crore |
|
Price Band |
₹133 - ₹140 per share |
|
Minimum Lot Size |
1,000 shares |
|
Minimum Investment |
₹1,40,000 |
|
Issue Type |
Fresh Issue (Book Building) |
|
Total Shares Offered |
6,507,000 shares |
Utilization of IPO Proceeds
|
Purpose |
Amount (₹ Crore) |
% of Total |
|
Capital Expenditure |
13.68 |
15.01% |
|
Working Capital Requirements |
59.27 |
65.06% |
|
Repayment of Borrowings |
6.00 |
6.58% |
|
General Corporate Purposes |
12.16 |
13.35% |
Financial Highlights (FY2023-25)
|
Financial Metric |
FY2023 (₹ Cr) |
FY2024 (₹ Cr) |
FY2025 (₹ Cr) |
|
Revenue |
95.33 |
122.87 |
192.66 |
|
Profit After Tax |
1.49 |
14.23 |
25.56 |
|
EBITDA |
14.68 |
34.58 |
47.41 |
|
Net Worth |
41.75 |
55.98 |
110.80 |
|
Total Borrowings |
60.22 |
63.80 |
59.98 |
Future Advice: Do’s and Don’ts for Investors
Do’s:
- Research
Thoroughly: Understand the company's fundamentals, growth
potential, and market positioning before investment.
- Consider
Long-Term Potential: Given Airfloa’s growing order book and
strategic positioning in rail modernization, long-term investment may
yield rewards.
- Track
Regulatory and Market Developments: Infrastructure policies and
government projects influence IPO success in this sector.
- Diversify
your Portfolio: Avoid concentrating too heavily on one IPO or
sector; balance with other investments.
- Review
Financial Health: Analyze profitability, debt levels, and cash
flow to gauge business stability.
Don’ts:
- Avoid
Herd Mentality Buying: Don’t rely solely on grey market premium
or hype without backing fundamentals.
- Don’t
Over-leverage: Be cautious about investing beyond comfortable
financial limits.
- Avoid
Ignoring Risks: Keep in mind dependency on Indian Railways for
major revenue and raw material price fluctuations.
- Don’t
Make Decisions Based on Short-Term Market Movements: Focus on
intrinsic value over short-term listing gains.
Airfloa Rail Technology IPO combines promising growth,
strong financial performance, and strategic sectoral importance, making it a
worth-watching investment opportunity with prudent financial planning.
