#AirfloaRailTechnology #IPO #StockMarket #RailwayComponents #IndianRailways #DefenceManufacturing #Aerospace #MakeInIndia #AtmanirbharBharat #InvestSmart #AnchorInvestors #HDFCBank
Chennai – Railway rolling stock components maker Airfloa Rail Technology Ltd has successfully raised ₹25.9 crore from eight anchor investors, including HDFC Bank, just a day before its much-awaited initial public offering (IPO) opens for subscription.
The IPO, valued at ₹91.1 crore, comprises 65.07 lakh shares and will be available for public bidding from September 11 to September 15, 2025. The price band has been fixed at ₹133–₹140 per share.
Anchor Book Allocation
The company finalised the allocation of 18.52 lakh shares to anchor investors at the upper price band of ₹140 per share.
Among the investors, HDFC Bank secured 72,000 shares, while LRSD Securities emerged as the largest participant by acquiring 7.76 lakh shares. Other notable investors include Inti Capital, Necta Bloom, and Rajasthan Global Securities, reflecting strong institutional confidence in Airfloa Rail’s growth potential.
IPO Details
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IPO Size: ₹91.1 crore
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Shares Offered: 65.07 lakh equity shares
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Price Band: ₹133–₹140 per share
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Issue Opens: September 11, 2025
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Issue Closes: September 15, 2025
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Anchor Investment: ₹25.9 crore raised on September 10, 2025
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Allocation to Anchor Investors: 18.52 lakh shares at ₹140 each
GYR Capital Advisors is acting as the merchant banker to the issue.
About the Company
Airfloa Rail Technology, headquartered in Chennai, is a specialist in railway rolling stock components and turnkey interior furnishing projects for the Indian Railways. Its expertise also extends to the aerospace and defence sectors, where it manufactures highly engineered, intricate, and mission-critical components.
The company has positioned itself as a vital supplier in India’s rapidly modernising railway ecosystem, while also contributing to India’s push for indigenous defence and aerospace manufacturing.
Utilisation of Proceeds
Airfloa Rail plans to utilise the net proceeds from the IPO towards:
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Purchase of machinery and equipment to scale up production capabilities.
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Repayment of certain borrowings, reducing leverage and strengthening its balance sheet.
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Working capital requirements to support growing operational needs.
This strategic deployment of funds is expected to improve operational efficiency, strengthen its manufacturing base, and position the company for long-term growth.
Shareholding Pattern
Before the IPO, the promoters held a 74.4% stake in the company, while the remaining 25.6% shares were owned by the public. Post-IPO, promoter shareholding is expected to be diluted, but they will continue to retain majority control.
Industry Outlook
India’s railway modernisation drive under the “Make in India” and Atmanirbhar Bharat initiatives has opened up vast opportunities for domestic manufacturers. With major government push toward high-speed trains, metro expansion, and upgraded rolling stock, demand for railway components and turnkey interior solutions is expected to surge in the coming years.
Additionally, India’s growing aerospace and defence market—backed by the Defence Production and Export Promotion Policy (DPEPP)—is another major growth driver for companies like Airfloa Rail, which already has expertise in producing intricate and critical parts.
Investor Perspective
Market experts see Airfloa Rail Technology’s IPO as an opportunity to participate in India’s transport infrastructure and defence manufacturing growth story. The strong response from anchor investors, including reputed names like HDFC Bank, indicates institutional confidence in the company’s fundamentals.
However, as with most SME and mid-sized IPOs, investors are advised to assess valuations, order book visibility, and sector risks before investing.
If the IPO sees strong subscription and listing gains, it could pave the way for Airfloa Rail to expand its footprint in both domestic and international markets.
Conclusion
Airfloa Rail Technology’s IPO is attracting attention not only because of its strong anchor book participation but also due to its role in India’s railway and defence growth journey. With a ₹91.1 crore issue size, strategic use of proceeds, and robust demand outlook, the company is set to make its mark in the public markets.
The subscription window between September 11–15, 2025, followed by listing in the later half of the month, will be closely watched by investors, particularly those interested in infrastructure-linked and defence-related plays.
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