Azad Engineering IPO will open for subscription from 20 December 2023. The company aims for an issue size of ₹740 Cr through this IPO.
Company Overview
| Full name | Azad Engineering Limited |
| Sector | Capital Goods |
| Industry | Engineering – Industrial Equipments |
| Company Website | https://www.azad.in/ |
About Company
Azad Engineering stands as a pivotal producer of certified product ranges, catering to international original equipment manufacturers (OEMs) across the aerospace and defense, energy, and oil and gas sectors. The company specializes in the production of intricately engineered, sophisticated components crucial for both mission success and life preservation.
The company faces competition from manufacturers in China, Europe, the USA, and Japan. Its customer base comprises worldwide OEMs in the aerospace and defense, energy, and oil and gas sectors, including but not limited to General Electric, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE. The product range includes 3D rotating airfoil/blade sections for turbine engines and other vital components serving two primary purposes: (a) for both defense and civil aircraft as well as spacecraft, and (b) for gas, nuclear, and thermal turbines employed in industrial applications and energy generation.
Azad Engineering has proven manufacturing capabilities and has delivered 3.09 million units between Fiscal 2009 to Fiscal 2023. The majority of the revenue is generated through exports to global OEMs, supported by long-term contracts. As of 30 September 2023, 89.69% of the total revenue comes from contracts with customers located outside India. For Fiscal 2023, the exports and domestic sales amounted to INR 202.31 crore and INR 49.37 crore, respectively, and private, and government sales and export incentives amounted to INR 233.70 crore, INR 17.60 crore, and INR 0.37 crore, respectively.
The Objectives of the Issue
- Funding capital expenditure of the Company;
- Repayment/prepayment, in part or full, of certain of the borrowings availed by the Company.
- General corporate purposes.
Azad Engineering IPO Timetable
| IPO Opening date | 20 December 2023 |
| IPO Closing | 22 December 2023 |
| Basis of Allotment | 26 December 2023 |
| Initiation Refund | 27 December 2023 |
| Credit to Demat Account | 27 December 2023 |
| Listing Date | 28 December 2023 |
Azad Engineering IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹740 Cr – 14,122,138 shares |
| Fresh Issue | ₹240 Cr – 4,580,153 shares |
| Offer for sale | ₹500 Cr – 9,541,985 shares |
| Face value | ₹02 per share |
| Price Band | ₹499 to ₹524 per share |
| Lot size | 28 Shares |
| Shareholding pre-issue | 54,532,842 |
| Shareholding post-issue | 59,112,995 |
| Listing Exchange | BSE & NSE |
Azad Engineering IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,672 |
| Retail (Max) | 13 | 364 | ₹190,736 |
| S-HNI (Min) | 14 | 392 | ₹205,408 |
| S-HNI (Max) | 68 | 1,904 | ₹997,696 |
| B-HNI (Min) | 69 | 1,932 | ₹1,012,368 |
Azad Engineering IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Azad Engineering Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 122.72 | 194.47 | 251.68 | 158.75 |
| Expenses | 108.79 | 159.13 | 248.36 | 137.92 |
| Net income | 11.50 | 29.46 | 8.47 | 26.89 |
| Margin (%) | 9.37 | 15.15 | 3.37 | 16.94 |
Azad Engineering Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 2.53 | 6.49 | 1.79 |
| PE ratio | – | – | 278.77 – 292.74 |
| RONW (%) | 12.65 | 25.37 | 4.23 |
| NAV | 20.02 | 25.58 | 42.30 |
| ROCE (%) | 12.09 | 16.95 | 12.99 |
| EBITDA (%) | 22.94 | 32.02 | 28.72 |
| Debt/Equity | 0.97 | 1.64 | 1.47 |
Company Promoters
- Rakesh Chopda
Promoter Holding
| Pre Issue Share Holding | 78.61% |
| Post Issue Share Holding | 56.38% |
Azad Engineering IPO Lead Manager(s)
- Axis Capital Limited
- ICICI Securities Limited
- SBI Capital Markets Limited
- Anand Rathi Securities Limited
Azad Engineering Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222
E-mail: azad.ipo@kfintech.com
Website: www.kfintech.com
Azad Engineering Contact Details
AZAD ENGINEERING LIMITED
90/C, 90/D, Phase-1, I.D.A. Jeedimetla,
Hyderabad 500 055, Telangana, India
Phone: +91 40 2309 7007
Email: cs@azad.in
Website: www.azad.in
Azad Engineering IPO Allotment Status
Azad Engineering IPO allotment status will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
Azad Engineering IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
