Azad Engineering IPO: All You Need to Know as Issue Opens for Subscription


by Sandip Das on 20 December 2023,  5 min read

Azad Engineering IPO: All You Need to Know as Issue Opens for Subscription - MyDhanush Blogs by Ashika

Azad Engineering, the company manufacturing aerospace components and turbines, opened its IPO on December 20, 2023, and will close the issue on December 22, 2023.

Company Profile

The firm manufactures aerospace and defense components for the energy, oil, and gas industries, creating highly engineered, complex, mission-critical components. Its products encompass 3D rotating airfoil portions of turbine engines and other critical components for defense and civil aircraft, spaceships, defense missiles, nuclear power, hydrogen, gas power, oil, and thermal power.

Starting its core manufacturing in 2008, Azad Engineering is a key player in the industries it serves. It possesses manufacturing capabilities for precision forging and machining, catering to prominent OEMs in the global supply chain.

Also Read: Happy Forgings IPO Sets Price Band at Rs 808-850

Company Name Azad Engineering
Issue Period  Dec 20-22, 2023
Issue Size – No. of Shares 1,01,22,705
Price Band Rs 499-524
Face Value Rs 2
Ticket Size Re 1
Market Lot 28
Minimum Bid Quantity 28
Maximum Bid Quantity for Qualified Institutional Investors 10042536
Maximum Bid Quantity for Non-Institutional Investors 7233688
Source: BSE
Price Band

The company has set the price band for the issue at Rs 499-524 per share.

Lot Size

Retail investors can bid for a minimum of 28 equity shares, with increments of 18 shares thereafter. This structure means that the minimum investment for retail investors would be Rs 13,972, and at the upper end, the bidding amount would increase to Rs 14,672.

Offer Details

The company aims to raise Rs 740 crore through the IPO. Promoter Rakesh Chopdar will offload shares worth Rs 204.97 crore, while investor Piramal Structured Credit Opportunities Fund plans to sell shares worth Rs 260.85 crore. Additionally, another selling shareholder, DMI Finance, will sell off shares worth Rs 34.18 crore in the OFS.

Book Running Lead Managers

Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited serve as the book-running lead managers for the Azad Engineering IPO. Kfin Technologies Limited has been appointed as the registrar for the issue.

Company Financials

Azad Engineering underwent financial volatility, recording a 71.2 percent year-on-year decline in net profit, totaling Rs 8.5 crore for the quarter ending March FY23.

However, revenue from operations during the same period experienced a growth of 29.4 percent, reaching Rs 251.7 crore. Additionally, EBITDA showed an increase of 16 percent, reaching Rs 72.3 crore.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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