Airfloa Rail Technology IPO

About Airfloa Rail Technology IPO

The IPO of Airfloa Rail Technology Ltd comprises a fresh issue of up to 65,07,000 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price band is [TBA] and the lot size is [TBA]. The IPO opens on [TBA] and closes on [TBA].

The listing date is on [TBA] and the allotment date is on [TBA]. The credit of shares to the Demat account will take place on [TBA], while the initiation of refund will take place on [TBA].

Airfloa Rail Technology Ltd is engaged in the manufacturing of components which are used in the rolling stock for the Indian Railways through railway production units like Integral Coach Factory (“ICF”), other coach factories. In addition to manufacturing the rolling stock components, it carries out turnkey interior furnishing projects for Indian Railways.

Objectives of Airfloa Rail Technology IPO

• Capital expenditure towards purchase of machinery and equipment
• Repayment of a portion of certain outstanding borrowing availed by the company
• Funding working capital requirements
• General corporate purposes

Industry Outlook

The Indian railway system is regarded as the foundation and lifeblood of the economy. Indian railways span thousands of kilometres practically covering the entire nation, making it the fourth largest in the world after the US, China, and Russia. The Railways Board, which has a monopoly over the provision of rail services in India, oversees the whole infrastructure.

The Indian Railway network is growing at a healthy rate. In the next five years, the Indian railway market is expected to be the third largest, accounting for 10% of the global market. The government has announced two key initiatives for seeking private investments-running passenger trains by private operators across the railways network and redevelopment of railway stations across the country.

According to Indian Railways, these projects have the potential of bringing an investment of over US$ 7.5 billion in the next five years. Introducing 3,000 new trains over the next four to five years to increase the current passenger capacity of the railways from 800 crore to 1,000 crore, with a focus on meeting the needs of the expanding population.

Company Information

Airfloa Rail Technology Ltd is engaged in the manufacturing of components which are used in the rolling stock for the Indian Railways through railway production units like Integral Coach Factory (“ICF”), other coach factories.

In addition to manufacturing the rolling stock components, it carries out turnkey interior furnishing projects for Indian Railways. In the aerospace and defence sectors, it manufactures intricate, highly engineered, and vital components. Along with Indian Railways through ICF and other coach factories, it also serves other rails factories, and global rolling stock OEMs.

Strengths of Airfloa Rail Technology Ltd

• Manufacturing capabilities delivering high-quality components
• Seamless end-to-end solution, simplifying project execution and boosting efficiency
• Advanced manufacturing, with modern machinery and equipment ensuring efficiency and precision
• Seasoned promoter with extensive industry experience
• Robust work order book coupled with proven financial performance

Risks of Airfloa Rail Technology IPO

• Adverse change in policies by the Ministry of Railways, Government of India, could result in contracts being foreclosed
  
• Increase in prices of raw materials could adversely affect business and results of operations
  
• Conflict of interest with subsidiary company in similar line of business
  
• Inability to generate sufficient cash flow may adversely affect results of operations
  
• Registered office and manufacturing facility not owned by it
  

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: KFin Technologies Ltd
• Book Running Lead Manager: GYR Capital Advisors Pvt Ltd

Business Model

The core business offerings of Airfloa Rail Technology Ltd comprise railways rolling stock including rail car body, rail interior, composites, etc. Its aerospace offerings include AMCA ground simulators for HAL and precision machine tool manufacturing. Defence offerings include body manufacturing for artillery tanks and body armours.

Company Growth Trajectory

The revenue from operations of Airfloa Rail Technology Ltd grew from ₹137.4938 crores in FY 22 to ₹119.3036 crores in FY 24, while EBITA margin increased from 11.86% in FY 22 to 28.14% in FY 24. Its PAT margin increased from 2.50% in FY 22 to 11.93% in FY 24. High-quality component manufacturing capabilities coupled with a robust order book has helped the company grow over the years.

Market Position

Airfloa Rail Technology Ltd has been in operation for over 20 years. It has extensive expertise as a reliable supplier of high-precision forged and machined components for the rolling stock, aerospace, and defence industries, as well as undertaking turnkey interior furnishing projects in railways.

How to Check Allotment Status of Airfloa Rail Technology IPO?

1. Visit the Registrar’s Website

• Visit the official website of KFin Technologies Ltd
• Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
• Click on any one of the appearing links
• Choose IPO name and enter either your application number, Demat account or PAN number
• Enter captcha and click on ‘Submit’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

How to Apply for the Airfloa Rail Technology Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.