Azad Engineering was originally incorporated as 'Azad Engineering Private Limited' on 14 September 1983. It is a manufacturer of qualified product lines supplying to global original equipment manufacturers ("OEMs") in the aerospace and defence, energy, and oil and gas industries. The company specialises in manufacturing highly engineered, complex, and mission- and life-critical components.
| Bidding Dates |
|---|
| 20 Dec 2023 - 22 Dec 2023 |
| Subscription |
|---|
| 80.65x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹13,972 | 1 | 13 | 28 | 14.1 M | ₹499 - ₹524 | 56.38 % | ₹7046.9 M - ₹7400.0 M | RHP DOC |
Azad Engineering IPO SUBSCRIPTION STATUS
22 Dec '23Azad Engineering IPO overall subscription rate was 80.65 times the total available shares
Azad Engineering IPO retail subscription rate was 23.79 times in the retail segment
Azad Engineering IPO non-institutional investor subscription rate was 87.61 times in the non-institutional investor category
Azad Engineering IPO Qualified Institutional Bidder subscription rate was 179.66 times the available shares for Qualified Institutional Bidder
Azad Engineering IPO Employees subscription rate was 14.71 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 35% | 15% | 50% | - |
22 Dec 2023 (Day 3) | 23.79x | 87.61x | 179.66x | 14.71x |
21 Dec 2023 (Day 2) | 11.15x | 23.49x | 1.53x | 6.24x |
20 Dec 2023 (Day 1) | 3.92x | 6.13x | 0.05x | 2.05x |
Azad Engineering FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| Q2FY24 | 268.9 | 1,587.5 | -85.9 | -257.2 | 33.1% |
| FY23 | 84.7 | 2,516.8 | -102.1 | -939.5 | 28.7% |
| FY22 | 294.6 | 1,944.7 | 209.4 | -962.1 | 32.0% |
| FY21 | 115.0 | 1,227.2 | 47.7 | -156.1 | 22.9% |
Azad Engineering IPO SUBSCRIPTION STATUS DETAILS
Azad Engineering had 14.1 M shares on offer
Azad Engineering IPO offer price was in the range ₹499 - ₹524
Azad Engineering IPO minimum Investment was ₹13972
Azad Engineering IPO issue size was ₹ 7046.9 M - ₹ 7400.0 M
Azad Engineering had a minimum lot size of 28 Shares per application
Azad Engineering NUMBER OF SHARES ON OFFER
Azad Engineering IPO IMPORTANT DATES
| Issue Open Date | 20 Dec 2023 |
| Issue close Date | 22 Dec 2023 |
| Allotment Date | 26 Dec 2023 |
| Refund Date | 27 Dec 2023 |
| Demat Account Credit Date | 27 Dec 2023 |
| Listing Date | 28 Dec 2023 |
| Listing on Exchange(s) | NSE and BSE |
| Azad Engineering Allotment Status | Exchange |
Azad Engineering IPO subscription opened on 20 Dec 2023, and closed on 22 Dec 2023
IPO allotment for Azad Engineering was finalized on Tuesday, 26 Dec 2023
IPO listing for Azad Engineering was on NSE and BSE on Thursday, 28 Dec 2023
Azad Engineering IPO LISTING GAINS
| Issue Price (adjusted) | 524.0 |
| Listing Open Price | 720.0 |
| Listing Close Price | 677.5 |
| Listing Gain% | 37.4% |
| Current Gain% | 375.0% |
Azad Engineering Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Azad Engineering Ltd. | 2489 | 14713.2 | 115.7 | 3 | 25.2 | 8.7 | 6 | 648.6 | 38.6 | 133 | 52.3 | 21.5 | 39.1 |
| Cummins India Ltd. | 5426 | 150408.7 | 63.5 | 6 | 11.9 | 27.9 | 20.9 | 12660.5 | 16.8 | 2361.8 | 18.1 | 85.4 | 10.6 |
| GE Vernova T&D India Ltd. | 4299 | 110074.4 | 84.3 | 1.2 | 16.4 | 45.8 | 15.9 | 6297.2 | 44.6 | 1233.2 | 102.7 | 51 | 70.6 |
| 3M India Ltd. | 36035 | 40593.8 | 77.7 | 6.4 | 8 | 29.5 | 16.6 | 5138.5 | 13.8 | 522.3 | 9.7 | 463.7 | 12.2 |
| Kirloskar Oil Engines Ltd. | 2161.7 | 31457 | 57.6 | 3.7 | 4 | 15.9 | 5.3 | 7771.2 | 21.5 | 574.3 | 17.4 | 37.5 | 15.8 |
| Jyoti CNC Automation Ltd. | 784.3 | 17836.8 | 55.4 | -12.6 | 8.1 | 16.8 | 9.3 | 2153.6 | 17.5 | 336 | 6.3 | 14.1 | -4.4 |
Azad Engineering INFORMATION ON IPO ISSUE
About Azad Engineering
Azad Engineering was originally incorporated as 'Azad Engineering Private Limited' on 14 September 1983. It is a manufacturer of qualified product lines supplying to global original equipment manufacturers ("OEMs") in the aerospace and defence, energy, and oil and gas industries. The company specialises in manufacturing highly engineered, complex, and mission- and life-critical components.
Object of the Issue
- Funding capital expenditure of the company.
- Repayment/prepayment, in part or full, of certain borrowings availed by the company.
- General corporate purposes.
Azad Engineering - PROMOTERS
| Name |
|---|
| Rakesh Chopdar |
Azad Engineering Book running lead manager
Axis Capital Limited
azad.ipo@axiscap.in
ICICI Securities Limited
azad.ipo@icicisecurities.com
SBI Capital Markets Limited
azad.ipo@sbicaps.com
Anand Rathi Advisors Limited
ael.ipo@rathi.com
Azad Engineering Registrar to the offer
KFin Technologies Limited
zad.ipo@kfintech.com
Azad Engineering Strengths
Supplier for global OEMs
Based on its deep market knowledge and ongoing interactions with long-standing customers, which offer expansive insights into multiple industries, the company believes it serves as a critical source supplier for global OEMs
Long-standing customer relationships
The company has existing relationships with both Indian and global OEMs. Its long-standing customer base includes leading product OEM companies and key strategic and globally preferred partners such as General Electric and Mitsubishi Heavy Industries, with whom it has maintained relationships for over 10 years on average
Advanced manufacturing facilities
The company has four manufacturing facilities in Hyderabad, India, spread across approximately 20,000 square metres. These facilities have a combined annual installed capacity of 158,356 hours, an actual annual production of 140,156 hours, and a capacity utilisation rate of 89% per annum
Azad Engineering Risks
Dependent on Hyderabad facilities
The company is highly dependent on its Hyderabad facilities for all its revenue from operations. Any disruption, breakdown, or shutdown of the Hyderabad facility may adversely affect the business, results of operations, financial condition, cash flows, and future prospects
Highly competitive global industry
The company faces global competition against other manufacturers of high-precision and mission-critical components. This competition is based on multiple factors, including product quality and reliability, product design and innovation, technology, manufacturing capabilities, price, and brand recognition
Rapidly changing customer preferences
The markets where the company's customers operate are characterised by sector-specific traits and rapidly changing preferences, including lower manufacturing costs, in the industries the company serves. Consequently, the company may be affected by any disruptions in these industries, which can adversely impact its business, financial condition, results of operations, cash flows, and prospects
IPO FAQs
This IPO consists of an offer for sale of up to Rs 500.0 crore, of 9,541,985 shares. It also consists of a fresh issue of Rs 240.0 crore.
The promoter of the company is Rakesh Chopdar.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 499.0 - 524.0.
The IPO application opens on Dec 20, 2023 and closes on Dec 22, 2023.
The minimum lot size for the IPO is 28. The maximum lot size for the IPO is 364.
For all category investors, the minimum application amount for this IPO is Rs. 13,972.0, the maximum value for this IPO is Rs 190,736.0.
This IPO will be allotted on Dec 26, 2023.
The refund will be credited to your account on Dec 27, 2023.
The allotted shares will be credited to your demat on Dec 27, 2023.
Azad Engineering Ltd.’s shares listed on the stock exchanges on Dec 28, 2023.