Powered by DeepSeek AI
BLOG
12 Sep 2025
![]()
Airfloa Rail Technology IPO - September 12, 2025
Airfloa Rail Technology is a key supplier of railway vehicles and interior projects in India and is also deeply involved in aerospace and defense component manufacturing. Its client base includes major projects like the Vande Bharat Express, Agra Kanpur Metro, and RRTS, giving it clear industry barriers and a strong long term order pipeline. The company holds ISO 9001:2015 and EN 15085-2 certifications, with solid financial performance—FY2025 revenue reached ₹19.266 billion, net profit ₹2.555 billion, ROE at 23.06%, and EBITDA margin at 24.61%, indicating strong profitability and healthy cash flow
The IPO is priced in the ₹133–₹140 range, with a total issue size of ₹9.11 billion. The post-issue P/E ratio stands around 13.14x, which is considered reasonable. On its first day, the IPO was subscribed 10.86 times, with retail investors subscribing 17.44 times, showing strong market enthusiasm. Anchor investors have already committed ₹2.593 billion, and the lock in arrangement is sound, giving the market strong confidence.
Combining both technical and fundamental perspectives, Airfloa Rail Technology demonstrates strong growth potential. Accelerated investment in the railway and defense sectors will continue to drive its earnings expansion. Based on the current IPO pricing, its valuation appears highly attractive. If we apply the industry average PE ratio, the post-listing fair target price could exceed ₹300, suggesting an expected first day gain of over 110%
Investors are advised to apply actively and hold until the listing date. If post-listing volume remains strong and the stock price stabilizes, it would be wise to continue holding mid-term to benefit from the ongoing localization wave in railway and aerospace sectors.
The IPO is priced in the ₹133–₹140 range, with a total issue size of ₹9.11 billion. The post-issue P/E ratio stands around 13.14x, which is considered reasonable. On its first day, the IPO was subscribed 10.86 times, with retail investors subscribing 17.44 times, showing strong market enthusiasm. Anchor investors have already committed ₹2.593 billion, and the lock in arrangement is sound, giving the market strong confidence.
Combining both technical and fundamental perspectives, Airfloa Rail Technology demonstrates strong growth potential. Accelerated investment in the railway and defense sectors will continue to drive its earnings expansion. Based on the current IPO pricing, its valuation appears highly attractive. If we apply the industry average PE ratio, the post-listing fair target price could exceed ₹300, suggesting an expected first day gain of over 110%
Investors are advised to apply actively and hold until the listing date. If post-listing volume remains strong and the stock price stabilizes, it would be wise to continue holding mid-term to benefit from the ongoing localization wave in railway and aerospace sectors.