Airfloa Rail Technology IPO: Strategic ₹65.07 Cr Fresh Issue Targets Expansion and Growth
By Shishta Dutta | Updated at: Jan 13, 2026 02:45 PM IST
Mumbai, 1 July 2025: Airfloa Rail Technology Limited has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO), proposing a 100% fresh issue of up to 65,07,000 equity shares with a face value of ₹10 each. The issue, set to be listed on the BSE SME platform, aims to raise approximately ₹65.07 crore, subject to the finalisation of the issue price through book-building.
Fresh Equity Issue to Fund Growth and Operational Demands
The IPO comprises an entirely fresh issue with no offer for sale component. The proceeds will be channelled toward strategic capital expenditure, debt reduction, and working capital augmentation, enabling the company to support its increasing business scale and operational efficiency.
IPO Snapshot
| Particulars | Details |
|---|---|
| Issue Type | 100% Book-Built, Fresh Issue |
| Fresh Issue Size | Up to 65,07,000 Equity Shares |
| Face Value | ₹10 per share |
| Listing | BSE SME |
| Issue Price | To be determined via book-building |
| Market Maker Reservation | Applicable (details to be updated) |
| Regulation Compliance | Reg. 229(2) and 253(1) of SEBI ICDR |
IPO Proceeds to Strengthen Equipment Base, Liquidity, and Debt Profile
The company has laid out a focused plan for the use of IPO funds. Capital will be directed toward acquiring machinery and equipment, strengthening liquidity through working capital, and partially repaying outstanding borrowings.
Use of Proceeds
| Objective | Estimated Allocation (₹ in Lakhs) |
|---|---|
| Capital expenditure for machinery & equipment | 1,343.82 |
| Repayment/prepayment of certain outstanding borrowings | 600.00 |
| Working capital requirement | 5,246.18 |
| General corporate purposes (not exceeding 15% cap) | [To be finalised] |
Total: Up to ₹65.07 crore (including issue expenses)
IPO Proceeds to Strengthen Equipment Base, Liquidity, and Debt Profile
The company has laid out a focused plan for the use of IPO funds. Capital will be directed toward acquiring machinery and equipment, strengthening liquidity through working capital, and partially repaying outstanding borrowings.
Use of Proceeds
| Metric | Dec 31, 2024 (9M) | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue from Operations | ₹13,106.51 lakh | ₹11,930.36 lakh | ₹9,517.39 lakh | ₹13,749.38 lakh |
| Net Profit | ₹1,527.69 lakh | ₹1,423.28 lakh | ₹149.36 lakh | ₹343.31 lakh |
| EBITDA Margin (%) | 23.21% | 28.14% | 15.40% | 11.86% |
| EPS (Basic & Diluted) | ₹9.28* | ₹9.50 | ₹1.00 | ₹2.29 |
| RoNW (%) | 19.52% | 29.13% | 3.64% | 8.91% |
*Not annualised
Pre-IPO Structure Reflects Strong Promoter Holding and Strategic Bonus Issue
Ahead of the IPO, the company holds a robust capital base and a high promoter holding. In FY25, a 2:1 bonus issue added 1.10 crore equity shares, increasing shareholder value and market appeal.
Capital Structure and Promoter Holding
- Pre-Issue Share Capital: ₹17.46 crore (1,74,62,954 shares)
- Promoter Shareholding (Pre-Issue): 74.40%
- Minimum Promoter Lock-in: 20% of post-issue capital for 3 years
- Bonus Shares Issued in FY25: 1.10 crore shares on 31 August 2024 (Ratio 2:1)
Focused Business in Rail Interiors and Global Diversification
Airfloa Rail Technology specialises in manufacturing rolling stock components and executing turnkey interior solutions for Indian Railways, including prestigious projects like Vande Bharat, RRTS, and Vistadome. Through its subsidiary Sree Dakssnaa Aerospace and Defence India Pvt. Ltd., the company also caters to international markets and defence sectors.
IPO Backed by Professional Management and Regulatory Compliance
The IPO is being managed by GYR Capital Advisors Pvt. Ltd. as the Book Running Lead Manager (BRLM), with KFin Technologies Ltd. appointed as the registrar. The company will adhere to SEBI ICDR norms in allocating shares across categories and ensure transparency through third-party monitoring and dedicated fund management.
Issue Management and Governance
- Book Running Lead Manager: GYR Capital Advisors Pvt. Ltd.
- Registrar: KFin Technologies Ltd.
- Market Maker: [To be confirmed]
- Allocation: Anchor, QIB, NII, and RII as per SEBI norms
- Monitoring: A Monitoring agency to be appointed due to the issue size exceeding ₹5 crore
- Fund Oversight: Managed by the Board and Audit Committee; funds to be kept in a separate bank account until deployed
Legacy and Leadership in Rail Manufacturing
Airfloa Rail Technology Limited (CIN: U30204TN1998PLC041571), headquartered in Chennai, has evolved from Air Flow Equipments (India) Pvt Ltd. The company has cemented its position as a key supplier for Indian Railways with a focus on rail interiors, modular coach solutions, and innovative manufacturing capabilities. Its growth trajectory reflects a commitment to precision, expansion, and high-quality engineering.
Disclaimer: All figures are as per the DRHP filed with SEBI dated June 30, 2025. Final price, subscription details, and timelines will be available post RHP filing and approval.
REF: https://www.bsesme.com/download/342311/SME_IPO InPrinciple/Airfloa_DRHP_Final_20250630204137.pdf
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