Azad Engineering IPO Allotment Status

Highlights of the Azad Engineering Ltd IPO

The stock of Azad Engineering Ltd has a face value of ₹2 per share and the price band for the book building IPO has been set in the range of ₹499 to ₹524 per share. The final price will be discovered within this band. The IPO of Azad Engineering Ltd will be a combination of a fresh issue and an offer for sale (OFS). The fresh issue portion of the IPO of Azad Engineering Ltd comprises the issue of 45,80,153 shares (45.80 lakh shares approximately), which at the upper price band of ₹524 per share will translate into a fresh issue size of ₹240.00 crore. The offer for sale portion of the Azad Engineering IPO comprises the sale of 95,41,985 shares (95.42 lakh shares approximately), which at the upper price band of ₹524 per share will translate into a total OFS size of ₹500.00 crore.

Therefore, the overall IPO of Azad Engineering Ltd will comprise of the issue and sale of 1,41,22,138 shares (141.22 lakh shares approximately), which at the upper price band of ₹524 per share translates into total IPO size of ₹740 crore. The stock of Azad Engineering Ltd will be listed on the NSE and the BSE. Fresh issue proceeds will be used to fund capital expenditure (CAPEX) and to repay / prepay outstanding loans of the company. The IPO will be lead managed by Axis Capital, ICICI Securities, SBI Capital Markets and Anand Rathi Securities. KFIN Technologies Ltd will be the registrar to the issue.

The basis of allotment will be finalized on 26th December 2023 while the refunds to non-allottees will be initiated on the 27th December 2023. The company expects to complete the demat credits to the allottees as of 27th December 2023, while the company plans to list its IPO on the BSE and the NSE on 28th December 2023.
How to check allotment status of the IPO
Allotment status online is an internet facility that is provided by the BSE (formerly Bombay Stock Exchange) and by the registrars on their website. Many of the brokers also provide direct connectivity to the database. However, in the absence of any connectivity, one option you always have to use one of these options. That means; you can either check your allotment status on the BSE website or the IPO registrar, KFIN Technologies Limited (formerly Karvy Computershare). Here are the steps.

Checking the allotment status of Azad Engineering Ltd on BSE website

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment by clicking on the link below.

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.
    • Under Issue Type – Select Equity Option
    • Under Issue Name – Select Azad Engineering Ltd from the drop down box
    • Enter the Application Number exactly as in the acknowledgement slip
    • Enter the PAN (10-digit alphanumeric) number
    • Once this is done, you need to click on the Captcha to verify that you are not a robot
    • Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters. There is one more point to note. Even if the company appears in the dropdown, the allotment status will only be available for you to check after the basis of allotment is finalized.
To complete your checking process, once you click on the SUBMIT button, the allotment status will be displayed on the screen in front of you informing about the number of shares of Azad Engineering Ltd allotted into your demat account. You can save a screenshot for future reference and for reconciling with the demat credit on 27th December 2023

Checking the allotment status of Azad Engineering Ltd on KFIN Technologies Ltd (Registrar to IPO)

Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:

https://ris.kfintech.com/ipostatus/

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of KFINTECH India Ltd but that pathway is slightly more complex as the website is designed more as a B2B website, so you can avoid that.
Here you are given the choice to select 5 servers viz. Link 1, Link 2, Link 3, Link 4, and Link 5. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 5 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select, the output will still be the same.

A small thing to remember here. Unlike on the BSE website, where the names of all IPOs are there on the drop-down menu, the registrar will only provide list of the IPOs managed by them and where the allotment status is already finalized. Also, for simplicity, you can either choose to see all IPOs or just recent IPOs. Choose the latter, as that reduces the length of the list of IPOs you need to search through. Once you click on Recent IPOs, the dropdown will only show the recent active IPOs, so once the allotment status is finalized, you can select Azad Engineering Ltd from the drop-down box. That means; you can access the allotment status of Azad Engineering Ltd either late on 26th December 2023 or by the middle of 27th December 2023.   

• There are 3 options. You can either query the allotment status based on PAN, Application Number or Demat Account (DPID-Client ID combination).

• To Query by PAN, check the appropriate box and follow these steps.
        ◦ Enter the 10-digit PAN number
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment status gets displayed on screen

• To Query by Application Number, check the appropriate box and follow these steps.
        ◦ Enter the Application Number as it is
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen
In the past, the first step was to select Application Type (ASBA or Non-ASBA) before inputting your application number. Now, that step has been done away with.

• To Query by Demat Account, check the appropriate box and follow these steps.
        ◦ Select the depository (NSDL / CDSL)
        ◦ Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
        ◦ Enter the Client-ID
        ◦ In the case of NSDL, the Demat account is 2 strings
        ◦ In the case of CDSL, the Demat account is just 1 string
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen

It is always advisable to retain a saved screenshot of the allotment status output for future reference. The same can be tallied with the demat account credit subsequently, when the status is updated in your demat account by end of 22nd December 2023 bearing the ISIN Number code - INE02IJ01035

What determines the chances of allotment in the IPO?

Broadly, there are 2 factors that determine the chances of an investor in getting an IPO. The first is the number of shares available under each of the categories, depending on which category you choose to invest in. The table below captures the quota for each of the categories as decided by the company in consultation with the BRLMs.

In the above table, the anchor portion allotment is already completed a day ahead of the IPO. The subscription for each category is only for the residual amount. We now move to the second item that influences allotment and that is the subscription ratio. Here is what the ratio of subscription for each category looks like.

Data Source: BSE

As can be seen, greater the oversubscription, lower the chances of allotment. The reverse also holds true. However, one thing to note is that SEBI rules for retail allocation are designed in such a way that maximum investors get at least the minimum 1 lot allotment. So, applying in the names of all your family members can improve your chances of allotment. In the above case, the oversubscription of the retail portion and the HNI portion is quiet normal and cannot be classified as very high. Hence, the chances of allotment are quite high. We have to await the final answer once the basis of allotment is finalized.