Azad Engineering shares list with 37% premium at Rs 720 apiece on NSE

Shares of Azad Engineering Ltd made a strong debut at Dalal Street on Thursday as the manufacturer of aerospace components and turbines debuted at Rs 720, a premium of 37.40 per cent, at the National Stock Exchange (NSE), against the issue price of Rs 524 apiece. The scrip was listed at a premium of 35.50 per cent at Rs 710 on the BSE.

The listing of Azad Engineering has been majorly in line with expectations as the company was commanding a premium of Rs 200-210 per share in the grey market, ahead of its listing, suggesting a listing pop of around 40 per cent to the investors. However, the premium in the unofficial market was around Rs 440 before the bidding process kicked off.

Sachin Tendulkar-backed Azad Engineering offered its shares in the fixed price band of Rs 499-524 apiece with a lot size of 28 equity shares between December 20 to December 22. The company raised a total of Rs 740 crore via IPO, including a fresh share sale of Rs 240 crore and an offer-for-sale (OFS) of up to 95,41,985 equity shares.

The issue was overall subscribed a stellar 80.65 times, thanks to robust bidding by qualified institutional bidders (QIBs), whose portion wasbooked a whopping 179.66 times, while the non-institutional investors' category was subscribed 87.61 times. The quota reserved for retail investors and employees was subscribed 23.79 times and 14.71 times, respectively.

Azad Engineering, which was incorporated in 1983, 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.

Legendary cricketer Sachin Ramesh Tendulkar invested about Rs 5 crore in the company in March 2023. He picked up 14,607 equity shares at a price of Rs 3,423 in the company, which were later turned in to 3,65,175 equity shares post stock split and bonus issue, as per the RHP of the company. The average price of Sachin's holding came out to Rs 136.92 apiece.

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 registrar for the issue.

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