Airfloa Rail Technology Ltd.’s
Airfloa Rail Technology’s ₹91.10 crore SME IPO opens from September 11–15, 2025. Airfloa Rail Tech IPO price band of ₹133–₹140 per share. With a grey market premium of ~118% and robust subscription trends, the issue is drawing strong investor interest. The company, a supplier of rolling stock components and coach interiors to Indian Railways, has showcased impressive financial growth in recent years.
The Company manufacture components for rolling stock for Indian Railways (via coach factories like Integral Coach Factory), turnkey interior furnishing projects for rail coaches, and high-precision components for aerospace & defence sectors.
Airfloa Rail Tech IPO Details
| Parameter | Detail |
|---|---|
| IPO Open Date | September 11, 2025 |
| IPO Close Date | September 15, 2025 |
| Issue Size | ₹91.10 crore (fresh issue) |
| Price Band | ₹133 – ₹140 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares; Retail investors must apply for at least 2 lots = 2,000 shares (₹2,80,000 at upper price band) |
| Listing Date | Expected to list on BSE SME on September 18, 2025 |
Airfloa Rail Tech IPO GMP & Subscription
- Grey Market Premium (GMP): ~ 117-118% above the upper issue price of ₹140. This implies a likely listing price of around ₹305 per share.
- Subscription Status (Day 1):
- Overall ~ 10.07× subscription by mid-Day 1.
- Retail category ~ 16.18×, NII ~ 9.20×. QIB had little to no subscription by that time.
Business & Company Background
- Established: 1998 (originally as Air Flow Equipments (India) Private Limited). Later changed its name to Airfloa Rail Technology Ltd. in August 2024; became public limited in November 2024.
- What they do: Manufacture components for rolling stock for Indian Railways (via coach factories like Integral Coach Factory), turnkey interior furnishing projects for rail coaches, and high-precision components for aerospace & defence sectors.
- Orders / Projects: They have order book exposure to railway coach furnishing, metro coach orders, exports (e.g. Mainline passenger coaches, exports to Sri Lanka) etc.
Financial Reports & Performance
- Revenue (FY25): ~ ₹19,238.70 lakhs (i.e. ₹192.39 crore)
- PAT (Profit After Tax, FY25): ~ ₹2,554.76 lakhs (i.e. ~₹25.55 crore)
- Margins:
- EBITDA margin ~ 24.61%
- PAT margin ~ 13.28%
- Growth: Revenue has grown significantly from FY23 to FY25. In FY23: ~ ₹95.33 crore; in FY25: ~ ₹192.39 crore. PAT also rose from ~₹1.49 crore in FY23 to ~₹25.55 crore in FY25.
Review: Strengths & Risks
Strengths:
- Strong revenue & profit growth; margins are reasonably good in the SME rail components space.
- High GMP suggests strong market expectations and likely strong listing.
- Good sector tailwinds: government spending on railway infrastructure, rolling stock modernisation, Make in India, etc.
Risks / Caveats:
- Heavy dependence on Indian Railways and the extension of its contracts; policy / tender risks.
- High working capital requirements and dependence on raw material prices.
- Since it’s an SME IPO, liquidity & post-listing performance can be volatile.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
