Aesthetic Engineers Ltd. (AEL), a key player in the design, engineering, fabrication, and installation of façade systems, is making its debut on the stock market with an IPO aiming to raise INR 26.47 crore. The company's portfolio includes a wide range of products such as building facades, aluminum doors and windows, railings and staircases, and Glassfibre Reinforced Concrete (GRC), catering to diverse sectors including hospitality, residential, commercial, and infrastructure.
With operations spanning several states like West Bengal, Bihar, Maharashtra, Assam, Odisha, and Gujarat, AEL has established itself as a trusted partner in large-scale construction projects. The company has recently strengthened its technical capabilities through a partnership with SCHUECO India Pvt. Ltd., the Indian arm of a German firm. This collaboration is expected to drive further growth, as AEL expands its reach across the country and seeks to boost both its top and bottom lines.
As of June 30, 2024, AEL employed 52 permanent staff members and had ongoing projects valued at INR 67.36 crore. The company's impressive client list includes industry giants like Infosys (NS:INFY), L&T, Shapoorji Pallonji, and Ambuja Housing, among others.
The IPO, which opened on August 8, 2024, and will close on August 12, 2024, is being offered in a price band of INR 55-58 per share. Investors can apply for a minimum of 2,000 shares. Post-IPO, the company's paid-up equity capital will increase from INR 12.66 crore to INR 17.22 crore, giving it a market capitalization of INR 99.88 crore at the upper price band.
A significant portion of the IPO proceeds, INR 15 crore, will be allocated for working capital, with an additional INR 8 crore earmarked for capital expenditures. The remaining funds will be used for general corporate purposes. The issue is being managed by Narnolia Financial Services Ltd., with Skyline Financial Services Pvt. Ltd. serving as the registrar.
Financially, AEL has shown robust growth, with total income rising from INR 40.36 crore in FY23 to INR 60.80 crore in FY24. However, the company has chosen to present its financial data in thousands rather than lakhs or millions, which raises some concerns. Despite this, the company's average EPS for the last two years stands at INR 7.09, with an average Return on Net Worth (RoNW) of 26.21%.
Comparing AEL with its listed peer, Innovators Facade, which trades at a P/E of 26.0, the IPO seems fairly priced with a P/E of 19.86 based on FY24 earnings. Given its solid financial performance, ongoing projects, and future growth prospects, AEL's IPO presents a viable investment opportunity for those looking to invest in the medium to long term.
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