Airfloa Rail Technology Limited IPO Opens on Sept 11, 2025

• Total Issue Size - Up To 65,07,000 Equity Shares of ₹ 10 each • IPO Size - ₹ 91.10 Crore (At Upper Price Band) • Price Band - ₹ 133 - ₹ 140 Per Share • Lot Size – 1,000 Equity Shares Mumbai – Airfloa Rail Technology Limited (Airfloa, The Company) is engaged in the manufacturing of components for rolling stock used by Indian Railways, proposes to open its Initial Public Offering on Sept 11, 2025, aiming to raise ₹ 91.10 Crores (at upper price band) with shares to be listed on the BSE SME platform.

The issue size is 65,07,000 equity shares with a face value of ₹ 10 each with a price band of ₹ 133 - ₹ 140 Per Share.

Equity Share Allocation • Anchor Portion – Up To 18,52,000 Equity Shares • Qualified Institutional Buyer – Up To 12,35,000 Equity Shares • Non-Institutional Investors - Not less than 9,30,000 Equity Shares • Individual Investors - Not less than 21,64,000 Equity Shares • Market Maker - Up to 3,26,000 Equity Shares The net proceeds from the IPO will be utilized towards Capital expenditure towards purchase of machinery and equipment, Repayment of a portion of certain outstanding borrowing availed by our company, Funding working capital requirements, and general corporate purposes. The anchor portion will open on Wednesday, Sept 10, 2025 and issue will close on Monday, Sept 15, 2025.

The Book Running Lead Manager to the Issue is GYR Capital Advisors Private Limited, and the Registrar is KFIN Technologies Limited.

Mr. Venkatesan Dakshinamoorthy, Chairman & Managing Director of Airfloa Rail Technology Limited expressed, “With a strong foundation built over two decades and a robust order book of ₹37,588.65 lakhs, Airfloa Rail Technology is poised to embark on its next phase of growth through this Initial Public Offering. Our presence across Indian Railways, aerospace, and defence sectors, combined with our focus on integrated manufacturing, turnkey execution, and high-margin product mix, has enabled us to consistently deliver strong results — with FY25 revenue from operation of ₹19,238.70 lakhs, an EBITDA margin of 24.61%, and a PAT margin of 13.28%.

The IPO proceeds will further strengthen our manufacturing infrastructure, enhance capacity utilization, support working capital requirements, and improve financial stability. With strong government initiatives, robust infrastructure investments, and rising demand for advanced train interiors and rolling stock, coupled with the significant growth potential in India’s aerospace and defence markets, we are well-positioned to diversify our revenue base, leverage our engineering expertise, and accelerate our growth trajectory. We remain committed to delivering long-term value for all stakeholders.” Mr. Mohit Baid, Director of GYR Capital Advisors Private Limited said “The Indian railway and rolling stock industry is witnessing an unprecedented capex cycle, with over ₹11.43 lakh crore of planned investments under NIP till FY25 and a strong policy focus on modernization, electrification, and Make in India initiatives. Airfloa Rail Technology, with its robust order book of ₹37,588.65 lakhs, presence across railways, aerospace, and defence, and integrated manufacturing capabilities, is strategically positioned to benefit from this growth cycle.

The company’s strong financial performance — 61.26% revenue growth in FY25, EBITDA margin of 24.61%, and PAT margin of 13.28% — compares favorably with listed peers like Jupiter Wagons and Titagarh Rail Systems, reflecting superior profitability and return ratios (RoE: 30.64%, RoCE: 26.28%). The IPO valuation offers investors an opportunity to participate in a company with scalable operations, proven execution capabilities, and exposure to multiple high-growth sectors.

We believe Airfloa Rail Technology is well-placed to deliver sustained growth and value creation for its shareholders as it transitions towards becoming a full-fledged rolling stock solutions provider.” About Airfloa Rail Technology Limited: Airfloa Rail Technology Limited (Airfloa, The Company) is engaged in the manufacturing of components for rolling stock used by Indian Railways through railway production units such as the Integral Coach Factory and other coach factories. It also executes turnkey interior furnishing projects for Indian Railways and supplies high-precision components to the aerospace and defence sectors.

The company has delivered projects for Sri Lankan DEMU and Mainline Export Coaches, Agra-Kanpur Metro, RRTS, Vistadome, and Vande Bharat Express. It also serves global rail OEMs and various Indian Railways units.

Its in-house capabilities include engineering, design, tooling, finishing, material development and assembly. With a focus on quality and cost-effective solutions, the company is a trusted partner to Indian Railways and OEMs in the global railway, aerospace, and defence sectors.

In FY25, The Company achieved a Revenue from operations of ₹ 19,238.70 Lakhs, EBITDA of ₹ 4,740.84 Lakhs & PAT of ₹ 2,554.76 Lakhs.

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