Shares of Hyderabad-based Azad Engineering will be listed on the stock exchange today. The company, whose IPO experienced a massive response of all categories of investors, has fixed the issue price at ₹524, at the upper end of the price band of ₹499-525. The IPO was subscribed more than 83 times.
The ₹740-crore IPO of Hyderabad-based Azad saw the quota for retail investors receiving bids 24.51 times, while that of non-institutions was 90.24 times. The QIB part was subscribed 179.64 times. The issue also includes a reservation for employees and their quota was subscribed 14.71 times.
Several sports personalities, including Sachin Tendulkar, PV Sindhu, VVS Laxman and Saina Nawal, had invested in the company.
Problem details
The initial public offering included a fresh issue of ₹240 crore and an offer for sale of ₹500 crore by promoters and external investors, including Piramal Structured Credit Opportunities Fund and DMI Finance.
Key Investors
Ahead of the IPO, the company had raised ₹220.80 crore from key investors including Nippon Life India, Abu Dhabi Investment, ICICI Prudential, Nomura, Ashoka India Equity, Kotak Mahindra Mutual, Tata Infrastructure Fund, Bandhan Infrastructure Fund, Edelweiss Mutual, HDFC Life Insurance, Bajaj Allianz, Max Life Insurance and Eastspring Investment India.
The company proposes to use the proceeds from the offer to partially fund capital expenditure for its expansion of ₹280 crore by setting up two units towards the end of the next financial year and to repay/prepay debt of approximately ₹90 crore ₹.
Investors must stay invested
Even after the IPO, the company will continue to rely on external investors in the form of HNIs (High Networth Individuals), including sports stars like Sachin Tendulkar, VVS Laxman, PV Sindhu and Saina Nehwal. Together, these HNIs and employees will own about 12 percent of the company.
About Azad Ingénierie
Azad Engineering is a niche manufacturer of product lines in the Aerospace & Defense, Power, Oil & Gas sectors. It manufactures highly technical, complex and mission and life-critical components. Some of its key products include 3D rotating wing parts of turbine engines and other critical products for defense and civil aircraft, spacecraft, missile defense, nuclear power, hydrogen, l gas energy, oil and thermal energy.
In the energy sector, the company has international customers such as Siemens Energy, General Electric, Honeywell International, Mitsubishi, Eaton Aerospace and MAN Energy Solutions.
The investment bankers involved in the issue are Axis Capital, ICICI Securities, SBI Capital Markets and Anand Rathi Advisors.
