What you must know about Azad Engineering IPO?
by 5paisa Research Team
15 Dec 2023
Listing Details
- Listing Exchange BSE, NSE
- Listing Date 28-Dec-23
- IPO Price Range ₹499
- Listing Price ₹710
- Listing Change 35.5 %
- Last Traded Price ₹1603.1
- Current Change 205.9 %
Azad Engineering IPO Details
- Open Date 20-Dec-23
- Close Date 22-Dec-23
- Lot Size 28
- IPO Size ₹ 740 Cr
- IPO Price Range ₹ 499 to ₹ 524
- Min Investment ₹ 13972
- Listing Exchange BSE, NSE
- Basis of Allotment 26-Dec-23
- Refunds 27-Dec-23
- Credit to Demat Account 27-Dec-23
- Listing Date 28-Dec-23
Azad Engineering IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 20-Dec-23 | 0.05 | 6.37 | 4.19 | 3.49 |
| 21-Dec-23 | 1.53 | 24.35 | 11.73 | 11.57 |
| 22-Dec-23 | 179.64 | 90.18 | 24.42 | 82.98 |
Azad Engineering IPO Synopsis
Azad Engineering Limited IPO is all set to open from 20th December to 22nd December 2023. The company is engaged in the business of making high-precision forged and machined components for the energy, aerospace, and defence industries. The IPO includes a fresh issue of 4,580,153 shares worth ₹240 cr and an Offer-for-Sale (OFS) of 9,541,985 shares worth ₹500 cr. The total IPO size is ₹740 cr. The share allotment date is 26th December, and the IPO will be listed on 28th December on the stock exchanges. The price band is ₹499 to ₹524 per share and the lot size is 28 shares.
Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Advisors Limited are the book-running lead managers for this IPO, while KFin Technologies Limited is the registrar.
Objectives of Azad Engineering IPO:
● To fund working capital requirements.
● To prepay or repay full/partial borrowings obtained.
● General corporate purpose.
Azad Engineering IPO Video:
About Azad Engineering
Established in 1983, Azad Engineering Limited is engaged in the business of making high-precision forged and machined components for the energy, aerospace, and defence industries.
It is one of the leading manufacturers of qualified products like complex and mission and life-critical components which are supplied to global original equipment manufacturers (OEMs). The company has four manufacturing units which are based in Hyderabad. Some of the parts supplied by the company also have strict requirements like “zero parts per million” defects.
The company competes with clients based in the US, China, Japan, and Europe. Some of the popular clients of Azad Engineering include General Electric, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.
Azad Engineering’s product line includes 3D rotating airfoil/ blade portions of turbine engines and other critical components for i) gas, nuclear and thermal turbines used in industrial applications or energy generation ii) defence and civil aircraft and spaceships.
The company has also supplied its high-precision components to some renowned commercial aircraft makers like B737, B737 Max, B747, B777, B777X, A320, A350, A355, A350 XWB, and Gulfstream G550.
Peer Comparison
● MTAR Technologies Limited
● Paras Defence and Space Technologies Limited
● Dynamatic Technologies Limited
● Triveni Turbine Limited
For More Information:
Azad Engineering IPO GMP
Webstory on Azad Engineering IPO
Know About Azad Engineering IPO
Azad Engineering Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 251.67 | 194.46 | 122.72 |
| EBITDA | 72.27 | 62.26 | 28.15 |
| PAT | 8.47 | 29.45 | 11.50 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 589.20 | 404.32 | 256.04 |
| Share Capital | 1.65 | 1.51 | 1.51 |
| Total Borrowings | 385.22 | 284.31 | 165.15 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -10.20 | 20.94 | 4.77 |
| Net cash from / (used in) investing activities | -101.15 | -114.19 | -34.70 |
| Net cash flow from / (used in) financing activities | 126.34 | 95.91 | 23.62 |
| Net increase (decrease) in cash and cash equivalents | 14.98 | 2.65 | -6.32 |
Azad Engineering IPO Key Points
-
Strengths
1. The company is a preferred name in the manufacturing of highly engineered, complex and mission and life critical high-precision components for global OEMs despite growing global competition.
2. The company supplies components to OEMs with high global market penetration.
3. It has long-standing and deep customer relationships.
4. It has advanced manufacturing facilities with a diverse range of products and solutions with a focus on innovation and cost competitiveness.
5. Its business is financially stable with consistent performance.
6. Experienced Promoter and management team backed by marquee investors.
-
Risks
1. Operates in a highly competitive global industry.
2. The business is subject to changing consumer preferences.
3. It is required to comply with certain restrictive covenants under financing agreements.
4. Negative cash flow reported in the past.
5. A downgrade in the credit rating could adversely affect its ability to raise capital in the future.
6. It has substantial working capital requirements.
7. The company depends on its brand recognition and thus any negative publicity can have a severe impact on its business.
Azad Engineering
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Azad Engineering IPO FAQs
What is the minimum lot size and investment required for Azad Engineering IPO?
The minimum lot size of Azad Engineering IPO is 28 shares and the investment required is ₹13,972.
What is the price band of Azad Engineering IPO?
The price band of Azad Engineering IPO is ₹499 to ₹524 per share.
When does the Azad Engineering IPO opens and closes?
The Azad Engineering IPO is open from 20th December to 22nd December 2023.
What is the size of the Azad Engineering IPO?
The size of Azad Engineering IPO is around ₹740 cr.
What is the allotment date of the Azad Engineering IPO?
The share allotment date of Azad Engineering IPO is 26th of December 2023.
What is the Azad Engineering IPO listing date?
The Azad Engineering IPO will be listed on 28th of December 2023.
Who are the book runners for the Azad Engineering IPO?
Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Advisors Limited are the book-running lead managers for Azad Engineering IPO.
What is the objective of Azad Engineering IPO?
The proceeds from this public issue will be used for:
● To fund working capital requirements.
● To prepay or repay full/partial borrowings obtained.
● General corporate purpose.
How to apply for the Azad Engineering IPO?
To apply for Azad Engineering IPO, follow the steps given below:
● Login to your 5paisa account and select the issue in the current IPO section
● Enter the number of lots and the price at which you wish to apply for the Azad Engineering IPO
● Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
● You will receive a mandate notification to block funds in your UPI app.
Contact Details of Azad Engineering IPO
Contact Information
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 Register
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: azad.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Azad Engineering IPO Lead Manager
ICICI Securities Limited
SBI Capital Markets Limited
Axis Capital Limited
Anand Rathi Securities Limited
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