Azad Engineering Ltd. IPO
Azad Engineering Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹524
Issue Price
Listing Price
₹710
Listing Price
Listing Gains
+₹186.00 (+35.50%)
Listing Gains
IPO Details
Bidding Dates
20 Dec - 22 Dec '23
Bidding Dates
Min. Investment
₹13,972
Min. Investment
Lot Size
28.00
Lot Size
Price Range
₹499 - ₹524
Price Range
Issue Size
705 Cr
Issue Size
Subscription Rate
- Retail Individual Investor23.79x
- Non-Institutional Investor87.61x
- Qualified Institutional Buyers179.66x
- Employees14.71x
About Company
Azad Engineering Ltd. is a specialty manufacturer with product lines in the energy, oil and gas, aerospace and defence, and other industries. It produces intricate, intricately engineered, mission- and life-critical components. Among its main products are 3D spinning air-foil sections for turbine engines, as well as other essential items for spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power, as well as other military and commercial aircraft.
The portion of the new issue will be used to pay off or prepay the company's outstanding debts as well as to acquire capital expenditures (CAPEX). The new cash will also be utilised, in part, for general business objectives. Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Securities will oversee the lead management of the IPO. The issue's registrar will be KFIN Technologies Ltd.
Important Dates - Azad Engineering IPO
| Application opens on | 20th December 2023 |
| Last date of application | 22nd December 2023 |
| Date of Allotment | 26th December 2023 |
| Refund begins from | 27th December 2023 |
| Credit of shares to Demat | 27th December 2023 |
| Listing date | 28th December 2023 |
Why should you invest in Azad Engineering Ltd. IPO?
Azad Engineering Limited is the most favoured partner of extremely important names and a specialised player in the life-critical component space. Throughout the stated periods, the company's top line has likewise shown consistent growth.
Azad Engineering IPO Grey Market Premium
| Date | GMP |
|---|---|
| 18th December | Rs.440 |
| 17th December | Rs.380 |
| 16th December | Rs.380 |
Azad Engineering IPO Noteworthy Highlights
- Azad Engineering Ltd.'s initial public offering (IPO) will consist of both a new issue and an offer for sale (OFS). Although the new issuance tends to attract new capital to the company, it also dilutes equity and profits per share. Nevertheless, OFS does not involve dilution of equity or EPS; rather, it is merely a transfer of ownership.
- The IPO of Azad Engineering Ltd includes a fresh issue portion consisting of 45,80,153 shares, or roughly 45.80 lakh shares.
- The sale of 95,41,985 shares, or around 95.42 lakh shares, is part of Azad Engineering Ltd offer for sale portion of its initial public offering (IPO).
Azad Engineering Ltd. IPO - SWOT Analysis
Strengths
In the very complicated technical solutions for the hydrocarbon, aerospace, and defence industries, the company is a chosen partner. Additionally, the company enjoys long-standing, close client connections with some of the most prestigious original equipment manufacturers (OEMs) worldwide.
Weaknesses
Although sales have increased steadily over the past three years, the newest year's profits decreased, primarily due to a dramatic increase in labour and staff expenditures. The demand for competent labour in this highly competitive industry is significantly higher than the supply, which means that labour prices will be higher.
Opportunities
Although the IPO is valued at a higher amount than before, this can be readily explained by the company's distinctive positioning and the anticipated margins over the next two years. This is ideally a long-term niche play into an industry that supports the defense, aerospace, and hydrocarbons sectors, which are all experiencing rapid expansion and attention.
Threats
The majority of Azad Engineering Limited's operating income is derived from its Hyderabad and Telangana facilities. The business, financial standing, and future prospects of the company could be adversely affected by any disruption, malfunction, or shutdown of the Hyderabad facility.
Financial Snapshot - Azad Engineering IPO
Check out the financial performance of Azad Engineering for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2021 | Rs 259 crore | Rs 102 crore | Rs 8 crore |
| March 2022 | Rs 406 crore | Rs 193 crore | Rs 27 crore |
| March 2023 | Rs 589 crore | Rs 251 crore | Rs 13 crore |
A competitive analysis
Azad Engineering Ltd has JSW Infrastructure Limited, Syrma SGS Technology Limited, and Ratan India Enterprises as its peers. Take a look at their performances:
Competitive Analysis - Azad Engineering IPO
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| JSW Infrastructure Limited | ₹ 48,636.04 | N.A |
| Syrma SGS Technology Limited | 11,897.31 | 128.81% |
| Ratan India Enterprises | 11,131.88 | 71.77% |
How to apply for Azad Engineering Ltd. IPO?
You can apply for the Azad Engineering Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Azad Engineering Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
