Azad Engineering IPO is a book built issue of Rs 740.00 crores. The issue is a combination of fresh issue of Rs 240.00 crores and offer for sale of Rs 500.00 crores.
Azad Engineering IPO opens for subscription on December 20, 2023 and closes on December 22, 2023. The allotment for the Azad Engineering IPO is expected to be finalized on Tuesday, December 26, 2023. Azad Engineering IPO will list on BSE, NSE with tentative listing date fixed as Thursday, December 28, 2023.
Azad Engineering IPO price band is set at ₹499 to ₹524 per share. The minimum lot size for an application is 28 Shares. The minimum amount of investment required by retail investors is ₹14,672. The minimum lot size investment for sNII is 14 lots (392 shares), amounting to ₹205,408, and for bNII, it is 69 lots (1,932 shares), amounting to ₹1,012,368.
Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited and Anand Rathi Securities Limited are the book running lead managers of the Azad Engineering IPO, while Kfin Technologies Limited is the registrar for the issue.
Refer to Azad Engineering IPO RHP for detailed information.
Azad Engineering IPO Details
| IPO Date | December 20, 2023 to December 22, 2023 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹499 to ₹524 per share |
| Lot Size | 28 Shares |
| Total Issue Size | [.] shares (aggregating up to ₹740.00 Cr) |
| Fresh Issue | [.] shares (aggregating up to ₹240.00 Cr) |
| Offer for Sale | [.] shares of ₹2 (aggregating up to ₹500.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 54,532,842 |
Azad Engineering IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Azad Engineering IPO Timeline (Tentative Schedule)
Azad Engineering IPO opens on December 20, 2023, and closes on December 22, 2023.
| IPO Open Date | Wednesday, December 20, 2023 |
| IPO Close Date | Friday, December 22, 2023 |
| Basis of Allotment | Tuesday, December 26, 2023 |
| Initiation of Refunds | Wednesday, December 27, 2023 |
| Credit of Shares to Demat | Wednesday, December 27, 2023 |
| Listing Date | Thursday, December 28, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 22, 2023 |
Azad Engineering IPO Lot Size
Investors can bid for a minimum of 28 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,672 |
| Retail (Max) | 13 | 364 | ₹190,736 |
| S-HNI (Min) | 14 | 392 | ₹205,408 |
| S-HNI (Max) | 68 | 1,904 | ₹997,696 |
| B-HNI (Min) | 69 | 1,932 | ₹1,012,368 |
| Lot Size Calculator |
Azad Engineering IPO Promoter Holding
The promoter of the company is Rakesh Chopda
| Share Holding Pre Issue | 78.61% |
| Share Holding Post Issue |
About Azad Engineering Limited
Azad Engineering Limited is a manufacturer of aerospace components and turbines. The company supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy and oil and gas industries.
Azad Engineering’s products are highly engineered, complex, mission critical and vital.
As of September 30, 2023, the company generated revenue of ₹1,142.92 million from the sale of blades for the energy industry. The company’s customer base includes the USA, China, Europe, the Middle East and Japan.
The company has four manufacturing facilities in Hyderabad, Telangana, India. These facilities are capable of producing high precision forged and machined components and have a total production area of around 20,000 square meters. The company is also planning to set up two more manufacturing units at Tuniki Bollaram village in Siddipet district, Telangana and Mangampet village in Sangareddy district, Telangana. These plants will have a total production area of 94,898.78 and 74,866.84 square meters respectively.
Azad Engineering is headquartered in Hyderabad, Telangana, India, and employs 201-500 people.
Azad Engineering Limited Financial Information (Restated)
Azad Engineering Limited’s revenue increased by 31.24% and profit after tax (PAT) dropped by -71.24% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 636.63 | 589.21 | 404.32 | 256.05 |
| Revenue | 169.54 | 261.52 | 199.26 | 125.03 |
| Profit After Tax | 26.89 | 8.47 | 29.46 | 11.50 |
| Net Worth | ||||
| Reserves and Surplus | 221.14 | 202.51 | 118.88 | 89.42 |
| Total Borrowing | 324.94 | 300.60 | 197.18 | 87.71 |
| Amount in ₹ Crore |
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E (x) | 292.74 |
| ROCE | 12.99% |
| Debt/Equity | 1.47 |
| EPS (Rs) | 1.79 |
| RoNW | 4.23 |
Check Azad Engineering IPO Peer Comparison here.
Objects of the Issue (Azad Engineering IPO Objectives)
The Net Proceeds of the Fresh Issue are proposed to be utilized in the following manner:
- Funding capital expenditure of the Company;
- Repayment/prepayment, in part or full, of certain of the borrowings availed by the Company; and
- General corporate purposes.
Azad Engineering IPO Review (Apply)
[Dilip Davda] The company is a niche player in its segment and enjoys virtual monopoly. It posted steady growth in its top line for the reported periods. Drastic fall in bottom line for FY23 is attributed to one-time adjustments as per new accounting norms. Based on FY24 annualized earnings, the issue appears fully priced. Considering bright prospects, it’s a worthy bet. Investors may park funds for the medium to long-term rewards. Read detail review…
Azad Engineering Limited Contact Details
Azad Engineering Limited
90/C, 90/D, Phase-1,
I.D.A. Jeedimetla,
Hyderabad 500055
Phone: +91 40 2309 7007
Email: cs@azad.in
Website: https://www.azad.in/
Azad Engineering IPO Registrar
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: azad.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/