Airfloa Rail Technology IPO: Review, GMP, Details, and Allotment
The SME (Small and Medium-sized Enterprise) segment of the Indian stock market has been very active, and the latest public offering creating significant buzz is from Airfloa Rail Technology Limited. As a key player in the railway, aerospace, and defense sectors, the company's IPO has attracted strong investor interest, particularly due to its high Grey Market Premium (GMP). This blog post provides a detailed review of the Airfloa Rail Technology IPO, covering all the essential information you need to know before you consider subscribing.
About Airfloa Rail Technology
Incorporated in 1998, Airfloa Rail Technology is an established manufacturer of high-precision components and a provider of turnkey solutions for the railway sector. The company specializes in manufacturing rolling stock components and executing interior furnishing projects for Indian Railways. They have been a crucial supplier for prestigious projects like the Vande Bharat Express, RRTS, and various Metro systems. Beyond railways, Airfloa also has a presence in the aerospace and defense sectors, manufacturing intricate and vital components. The company's business model, which includes both component manufacturing and comprehensive project execution, positions it as a strategic partner in India's infrastructure modernization drive.
Airfloa Rail Technology IPO Details
The Airfloa Rail Technology IPO is a book-built issue of ₹91.10 crore, comprising a fresh issue of 65.07 lakh equity shares. Importantly, there is no offer-for-sale (OFS) component, meaning all the proceeds from the IPO will go to the company to fund its growth initiatives.
Objects of the Issue
The company plans to utilize the net proceeds from the IPO for the following key purposes:
- Funding capital expenditure for the purchase of new machinery and equipment.
- Repaying a portion of outstanding borrowings to strengthen the balance sheet.
- Meeting the company's working capital requirements.
- General corporate purposes.
Airfloa Rail Technology IPO Date and Price
The IPO is now open for subscription. Here are the important dates and pricing details you should be aware of:
Key Dates
| IPO Activity | Date |
|---|---|
| IPO Open Date | September 11, 2025 |
| IPO Close Date | September 15, 2025 |
| Basis of Allotment Finalization | September 16, 2025 |
| Initiation of Refunds | September 17, 2025 |
| Credit of Shares to Demat Account | September 17, 2025 |
| IPO Listing Date | September 18, 2025 |
Price and Lot Size
| Details | Information |
|---|---|
| Price Band | ₹133 to ₹140 per equity share |
| Face Value | ₹10 per share |
| Minimum Lot Size | 1,000 shares |
| Minimum Investment (Retail) | ₹1,40,000 (at the upper price band) |
Airfloa Rail Technology IPO GMP (Grey Market Premium)
The Grey Market Premium (GMP) for this IPO has been exceptionally strong, attracting a lot of investor attention. The GMP has been reported to be over 100% on the issue price, indicating that the stock could list at more than double its issue price. While the GMP is an unofficial indicator and subject to change, such high premiums reflect robust demand and suggest the potential for significant listing gains. Investors should, however, consider the underlying fundamentals of the company and not rely solely on the GMP.
Financial Performance and Analysis
Airfloa Rail Technology has a strong financial track record. The company has shown consistent growth in both its top and bottom lines. For the financial year ended March 31, 2025, the company reported a revenue of ₹192.66 crore and a Profit After Tax (PAT) of ₹25.55 crore. This demonstrates a healthy growth trajectory and strong profitability. The company also boasts a robust order book of over ₹375 crore as of August 2025, providing excellent revenue visibility for the coming years. Its diversified business into defense and aerospace, combined with a strong focus on high-margin products, gives it a competitive edge.
Airfloa Rail Technology IPO Allotment Status
After the IPO subscription period closes, the shares will be allotted to successful applicants. The registrar for this issue is KFin Technologies Ltd. You can check the allotment status on their official website using your PAN number or IPO application number. The finalization of the allotment is expected on September 16, 2025, and the shares will be credited to successful applicants' demat accounts on September 17, 2025.
Frequently Asked Questions (FAQs)
Airfloa Rail Technology manufactures components and provides turnkey interior solutions for the railway sector, and also supplies intricate components to the aerospace and defense industries.
The price band is ₹133 to ₹140 per share, and the minimum retail investment is ₹1,40,000 for one lot of 1,000 shares.
The shares are tentatively scheduled to be listed on the BSE SME platform on September 18, 2025.
You can check the allotment status on the website of the registrar, KFin Technologies Ltd., once the allotment is finalized on September 16, 2025.
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