15-Dec-2023
2 mins read
The initial public offering (IPO) of Azad Engineering is structured as a book-built issue, valued at a total of Rs 740.00 crores. This sum is divided between a fresh issue worth Rs 240.00 crores and an offer for sale amounting to Rs 500.00 crores. The subscription window for the Azad Engineering IPO opens on December 20, 2023, and concludes on December 22, 2023. The finalization of allotments is anticipated to occur on December 26, 2023, a Tuesday. The company is set to debut on the stock exchanges BSE and NSE, with the tentative date for listing being December 28, 2023, a Thursday.
The price range for the IPO has been set between Rs 499 and Rs 524 for each share. Prospective retail investors must purchase at least 28 shares, equating to an investment of at least Rs 14,672. For small non-institutional investors (sNII), the minimum investment is 14 lots, equivalent to 392 shares, totalling Rs 205,408. Big non-institutional investors (bNII) must invest in a minimum of 69 lots of 1,932 shares, amounting to Rs 1,012,368.
A group of book-running lead managers, including Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited, manages the IPO. Kfin Technologies Limited has been appointed as the registrar for the Issue.
Azad Engineering Limited Product Portfolio
Azad Engineering Limited specializes in producing aerospace components and turbines, catering to various sectors such as aerospace, defence, energy, and oil and gas. The company’s offerings are known for their high level of engineering, complexity, and critical nature in missions.
As of the end of September 2023, Azad Engineering reported earnings of ₹1,142.92 million, primarily from blade sales in the energy sector. The firm serves a diverse international clientele, including markets in the USA, China, Europe, the Middle East, and Japan.
Azad Engineering operates four manufacturing units in Hyderabad, Telangana, India. These units are equipped to manufacture highly precise forged and machined components, covering a total area of approximately 20,000 square meters. In addition, plans are underway to establish two more facilities in Tuniki Bollaram village, Siddipet district, and Mangampet village, Sangareddy district, Telangana. These new plants are expected to span 94,898.78 and 74,866.84 square meters, respectively.
The company, with its headquarters in Hyderabad, Telangana, India, has a workforce of 201 and 500 employees.
The Objectives of Azad Engineering Limited IPO
The funds raised from the Fresh Issue will be allocated for several key purposes. Firstly, a significant portion will be directed towards financing the company’s capital expenditure needs. Additionally, there will be a focus on partially or entirely repaying or prepaying some of the existing loans the company has incurred. The remaining amount will be used for various general corporate activities.
Financial Performance of Azad Engineering Limited (In Crore)
Between the fiscal years ending March 31, 2023, and March 31, 2022, Azad Engineering Limited experienced a revenue growth of 31.24%. However, during the same period, the company’s profit after tax (PAT) witnessed a decline of 71.24%.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| 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 | 11.5 |
| Net Worth | ||||
| Reserves and Surplus | 221.14 | 202.51 | 118.88 | 89.42 |
| Total Borrowing | 324.94 | 300.6 | 197.18 | 87.71 |
Important Details for Azad Engineering Limited IPO
| IPO Date | December 20, 2023 to December 22, 2023 |
| Listing Date | Yet to be announced |
| Face Value | Rs 2 per share |
| Price Band | Rs 499 to Rs 524 per share |
| Lot Size | 28 Shares |
| Total Issue Size | Aggregating up to Rs 740.00 Cr |
| Fresh Issue | Aggregating up to Rs 240.00 Cr |
| Offer for Sale | Aggregating up to Rs 500.00 Cr |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 54,532,842 |
Timetable of Azad Engineering Limited IPO (Tentative)
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 |
IPO Lot Size of Azad Engineering Limited
Investors have the option to subscribe for a minimum of 28 shares, with further investments possible in multiples of this number. The following table outlines the smallest and largest possible investments for retail investors and high-net-worth individuals (HNIs), presented in both the number of shares and the corresponding monetary value.
| 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 |
IPO Reservation of Azad Engineering Limited
| 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 |
Promoters of the Company
Rakesh Chopda is the promoter of the company
Azad Engineering Limited IPO Promoter Holding
| Shareholding Pre Issue | 78.61% |
| Shareholding Post Issue |
Key Performance Indicator of Azad Engineering Limited IPO
| KPI | Values |
| P/E (x) | 292.74 |
| ROCE | 12.99% |
| Debt/Equity | 1.47 |
| EPS (Rs) | 1.79 |
| RoNW | 4.23 |
Azad Engineering Limited IPO Lead Manager
The lead managers of the company are Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited.
How to Apply for Azad Engineering Limited IPO
Wait for the public Issue to open for subscription, then click on this link to apply for the Azad Engineering Limited IPO with Bigul: https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Credo Brands Marketing Limited IPO
The registrar for Azad Engineering Limited IPO is Kfin Technologies Limited. To check your allotment status, please click on this link: https://kosmic.kfintech.com/ipostatus/.
FAQs
- What is Azad Engineering Limited IPO?
Azad Engineering Limited IPO is a book-built public offering valued at Rs 740.00 crores. It comprises a fresh issue of Rs 240.00 crores and an offer for sale of Rs 500.00 crores.
- When is the Azad Engineering IPO opening for subscription?
The IPO opens on December 20, 2023, and closes on December 22, 2023.
- What is the price band for the Azad Engineering IPO?
The price range is set between Rs 499 and Rs 524 per share.
- What is the minimum investment required for retail investors?
Retail investors must invest in a minimum of 28 shares, amounting to Rs 14,672.
- Who are the book-running lead managers for the IPO?
The IPO is managed by Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited.
- What is Azad Engineering Limited’s main business?
Azad Engineering Limited specializes in manufacturing aerospace components and turbines for aerospace, defence, energy, and oil and gas industries.
- Where are Azad Engineering’s manufacturing facilities located?
The company has four manufacturing facilities in Hyderabad, Telangana, India, and is planning to set up two more in Tuniki Bollaram and Mangampet villages in Telangana.
- How did Azad Engineering perform financially in the past fiscal years?
For the fiscal year ending March 31, 2023, the company’s revenue grew by 31.24%, while the profit after tax decreased by 71.24%.
- How can I apply for the Azad Engineering Limited IPO?
You can apply for the IPO during its subscription period via the link here.
- How can I check the allotment status of the Azad Engineering IPO?
The allotment status can be checked through Kfin Technologies Limited’s portal here.
- What are the objectives of the Azad Engineering IPO?
The proceeds from the Fresh Issue will be used for capital expenditure, repaying or prepaying certain borrowings, and general corporate purposes.
- What are the key performance indicators of Azad Engineering Limited?
Some key indicators include a P/E ratio of 292.74, ROCE of 12.99%, Debt/Equity ratio of 1.47, EPS of Rs 1.79, and RoNW of 4.23%.
- How will the IPO affect the company’s promoter holding?
The promoter holding will change post-IPO, but the exact figures will be determined after the issue’s completion.
- What are the reservation details for different investor categories in the IPO?
The IPO reserves not more than 50% for QIBs, not less than 35% for retail investors, and not less than 15% for NII (HNI) investors.