Azad Engineering IPO ends with strong subscription

Published on Dec 23, 2023 15:52

The initial public offer (IPO) of Azad Engineering received bids for 81,64,09,468 shares as against 1,01,22,705 shares on offer. The issue was subscribed 80.65 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 179.66 times. The Non Institutional Investors (NIIs) category was subscribed 87.61 times. The Retail Individual Investors (RIIs) category was subscribed 23.79 times.

The issue opened for bidding on 20 December 2023 and it closed on 22 December 2023. The price band of the IPO was fixed at Rs 499-524 per share.

The offer comprised only fresh issue of equity shares aggregating to Rs 240 crore and offer for sale (OFS) of equity shares aggregating to Rs 500 crore.

Of the net proceeds from the fresh issue, the company intends to use Rs 60.39 crore towards funding capital expenditure; Rs 138.19 crore towards repayment and prepaymentin part or full of certain borrowings and balance towards general corporate purposes.

As on 30 September 2023, the aggregate outstanding borrowings (except for the PSCOF CCDs) were Rs 154.23 crore (including bank guarantee amounting to Rs 0.59 crore).

Ahead of the IPO, Azad Engineering on 19 December 2023 raised Rs 220.79 crore from anchor investors. The board allotted 42.13 lakh shares at Rs 524 each to 20 anchor investors.

Azad Engineering is a key manufacturer of qualified product lines supplying to global original equipment manufacturers (OEMs) in the energy, aerospace and defence, and oil and gas industries. The products the company manufactures are highly engineered, complex, mission and life critical high precision forged and machined components.

The firm reported a net profit of Rs 26.89 crore and sales of Rs 158.75 crore for the three months ended on 30 June 2023.