Azad Engineering IPO to open on December 20; check price band, other details

Azad Engineering has announced the price band for its upcoming initial public offering (IPO), which will open for bidding on Wednesday, December 20. The company will be selling its shares in the range of Rs 499-525 with a lot size of 28 equity shares and its multiples thereafter. Bidding for the issue will conclude on Friday, December 22.

Azad Engineering 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.

The company will be raising a total of Rs 740 crore via its primary stake sale, which includes a fresh share sale of Rs 240 crore and offer-for-sale (OFS) of up to shares worth Rs 500 crore by its promoter Rakesh Chopdar and other investor shareholders including Piramal Structured Credit Opportunities Fund and DMI Finance.

The net proceeds from the fresh issue shall be utilized towards  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'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.

Azad Engineering is headquartered in Hyderabad, Telangana. 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.

The company reported a net profit at Rs 26.89 crore with a revenue of Rs 169.54 crore for the period ended on September 30, 2023. Its bottomline came in at Rs 8.47 crore with a revenue of Rs 261.52 crore for the financial year ended on March 31, 2023.

The company has reserved 50 per cent of net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent shares allocated towards them. Retail investors will have 35 per cent of equities reserved during the bidding.
 

Axis Capital, ICICI Securities, SBI Capital Markets and Anand Rathi Advisors are the book running lead managers of the Azad Engineering IPO, while Kfin Technologies is the registrar for the issue. Shares of the company will be listed on both BSE and NSE on Thursday, December 28.

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