Azad Engineering IPO opens for public subscription on Wednesday, December 20, 2023, and will close on Friday, December 22, 2023. The price band for its public issue is Rs 499-524 per equity share with a face value of Rs 2 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 740 crore from the IPO. The IPO comprises a fresh issue of equity shares worth Rs 240 crore and an Offer-For-Sale (OFS) with promoters offloading equity shares of Rs 500 crore.
The company intends to use the net proceeds from the IPO to fund the capital expenditure of the Company and for the repayment/prepayment, in part or in full, of certain borrowings availed by the Company. For potential investors, the bidding starts at a minimum of 28 equity shares, with subsequent bids in multiple lots of 28 equity shares each, with a maximum of 13 lots.
The shares are scheduled to be credited to the demat accounts on Wednesday, December 27, 2023. The company has appointed Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Securities as the book running lead managers of the public issue. Shares of Azad Engineering are likely to make their debut on the bourses on Thursday, December 28, 2023.
Azad Engineering, a manufacturer of aerospace components and turbines, supplies products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries. As of September 30, 2023, the company earned Rs 114.292 crore in revenue from selling energy industry blades, according to the information available on Chittorgarh.com. Operating from four facilities in Hyderabad, Telangana, India, with a combined production area of around 20,000 square meters, Azad Engineering plans to expand with two additional units in Tuniki Bollaram village and Mangampet village, Telangana, boasting production areas of 94,898.78 and 74,866.84 square meters, respectively. The company serves customers in the USA, China, Europe, the Middle East, and Japan.
Azad Engineering’s key performance indicators (KPIs) include a Price-to-Earnings (P/E) ratio of 292.74x, a Return on Capital Employed (ROCE) of 12.99%, a Debt/Equity ratio of 1.47, Earnings per Share (EPS) at Rs 1.79, and a Return on Net Worth (RoNW) of 4.23%.