Azad Engineering IPO issue size is ₹740.00 crore. The issue is a combination of fresh issue of 46 lakh equity shares aggregating to ₹240 crore and offer for sale (OFS) of 95 lakh shares aggregating to ₹500 crore.
Azad Engineering IPO: Aerospace components and turbines manufacturer Azad Engineering is set to launch its initial public offering (IPO) today, December 20. The company plans to raise ₹740 crore from the public issue that will conclude on December 22.
Headquartered in Hyderabad, Telangana, Azad Engineering supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries. Its products are highly engineered, complex, mission-critical, and vital.
Here are 10 key things to know about Azad Engineering IPO:
1) Azad Engineering IPO Dates: Azad Engineering IPO opens for subscription on December 20 and will close on December 22, 2023. The IPO allotment is expected to be finalized on December 26.
2) Azad Engineering IPO Details: Azad Engineering IPO issue size is ₹740.00 crore. The issue is a combination of fresh issue of 46 lakh equity shares aggregating to ₹240 crore and offer for sale (OFS) of 95 lakh shares aggregating to ₹500 crore.
3) Azad Engineering IPO Price Band: Azad Engineering IPO price band has been set at ₹499 to ₹524 per share.
4) Azad Engineering IPO Lot Size: Azad Engineering IPO lot size is 28 shares and the minimum investment amount required by retail investors is ₹14,672.
5) Azad Engineering IPO Listing: Azad Engineering IPO will list on both the stock exchanges – BSE and NSE – with a tentative listing date fixed on December 28.
6) Azad Engineering IPO Objectives: The company proposes to utilise the net proceeds of the fresh issue for funding capital expenditure, repayment or prepayment of certain of the borrowings and general corporate purposes.
7) Azad Engineering IPO Reservations: The company has reserved 50% of shares in the IPO for Qualified Institutional Buyers (QIB), 35% for Retail Investors, while remaining 15% of shares has been reserved for Non-Institutional Investors (NII).
8) Azad Engineering IPO Lead Managers, Registrar: Axis Capital, ICICI Securities, SBI Capital Markets and Anand Rathi Securities are the book running lead managers of the Azad Engineering IPO, while Kfin Technologies is the IPO registrar.
9) Azad Engineering IPO GMP: Azad Engineering IPO GMP today, or grey market premium today, is ₹440 per share, as per market observers. This indicates that the Azad Engineering shares are trading at a premium of 83.97% to the issue price at ₹964 apiece in the grey market.
10) Azad Engineering IPO Review: Azad Engineering is a niche player in its segment and enjoys virtual monopoly. The company reported steady growth in its revenue for the reported periods. Based on FY24 annualized earnings, Azad Engineering IPO issue appears fully priced. Considering the bright prospects of the company investors can subscribe to the issue for a medium to long-term, analysts said.
