Airfloa Rail Technology IPO Opens Tomorrow; Price Band Set at ₹133–₹140 per Share

New Delhi, September 10, 2025 – Airfloa Rail Technology Limited will open its ₹91 crore Initial Public Offering (IPO) on September 11, 2025, and the issue will close on September 15, 2025.

Airfloa Rail Technology IPO Details

Airfloa Rail Technology IPO will launch its initial public offering (IPO) of ₹91.10 crore, all through a fresh issue of 65 lakh equity shares. The price band has been set at ₹133–₹140 a share. Bids can be placed in a lot size of 1,000 shares, which works out to a minimum retail investment of ₹2.8 lakh (2,000 shares at the higher band). For HNIs, there is a minimum application size of three lots (3,000 shares) and an investment of ₹4.2 lakh.

GYR Capital Advisors Pvt. Ltd. will be the book-running lead manager of the issue, while Kfin Technologies Ltd. will be the registrar. Giriraj Stock Broking Pvt. Ltd. has been designated as a market maker.

Financial Performance

Airfloa Rail Technology has recorded excellent growth in the last three years, with revenue almost doubling from ₹9,517.39 lakh in FY23 to ₹19,238.70 lakh in FY25. Profitability has also improved as EBITDA increased from ₹1,468.46 lakh to ₹4,740.84 lakh over the same period, though margins decreased marginally from 28.14% in FY24 to 24.61% in FY25.

Net profit saw a sudden spurt, increasing from mere ₹149.36 lakh in FY23 to ₹2,554.76 lakh in FY25, as PAT margins increased to 13.28%. Return on equity widened by a large proportion of 3.64% to 30.64%. Concurrently, the company also lowered its debt burden, as the debt-equity ratio declined from 1.44 in FY23 to 0.54 in FY25.

Key Strengths

• Diversified Rail Offerings: Produces passenger coaches, wagons, locomotives, and components, catering to Indian Railways, metro projects, and exports
• Proven Execution Track Record: Successfully executed projects for Vande Bharat, metro rail systems, and foreign contracts such as Sri Lanka.
• Strong Financial Growth: Topline growth was 61% YoY in FY25 with increasing profitability and margins.
• Long-standing Customer Relationships: Closely works with rail authorities and noted OEMs, guaranteeing repeat business.
• Engineering & Design Capabilities: Design strength in-house with modern tools such as Dassault Catia and SolidWorks .

Key Risks

• Heavy Dependence on Rail Sector: Heavily dependent on Indian Railways and metro projects; sectoral delays may hamper growth.
• Competitive Industry: Competes with major domestic and international rail and aerospace companies.
• Working Capital Intensive: Longer receivables cycle and project implementation expenses can put pressure on liquidity.
• Regulatory & Tax Liabilities: Outstanding GST dues of more than ₹40 lakh under dispute.
• First-time Listing Risk: Being a debutant IPO, no historical record of stock performance; volatility expected in initial trades.

About Airfloa Rail Technology

Airfloa Rail Technology Limited is engaged in the manufacturing and designing of railway rolling stock, coaches, wagons, locomotives, and aerospace parts. It has diversified into turnkey interior furnishing for overseas rail projects as well.

REF:https://www.airflow.co.in/pdf/Airfloa_DRHP_Final.pdf

https://www.airflow.co.in/pdf/Airfloa_RHP_Final_Clean.pdf

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