Azad Engineering IPO: Hyderabad-based Azad Engineering’s initial public offering (IPO) received 80.60 times subscription on the last day of the offer on Friday.
According to NSE data, Azad Engineering’s IPO received bids for 81,58,60,388 shares against 1,01,22,705 shares on offer. The IPO opened for subscription on December 20.
The portion reserved for Qualified Institutional Buyers (QIBs) fetched a whopping 179.66 times subscription while the non-institutional investors part received 87.55 times subscription. The category for Retail Individual Investors (RIIs) was subscribed 23.71 times.
The IPO had a fresh issue of up to ₹240 crore and an offer for sale of ₹500 crore. Azad Engineering announced the price band of the IPO at ₹499-524.
The company proposes to utilise the proceeds from the offer to part-fund capital expenditure for its ₹280 crore expansion by setting up two units towards the end of the next fiscal and for repaying/pre-paying debt of around ₹90 crore.
Azad Engineering supplies products to global Original Equipment Manufacturers (OEMs) in the aerospace and defence, energy, and oil and gas industries.
Among the company’s customers are General Electric, Honeywell International Inc, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.
The book-running lead managers of the Azad Engineering IPO are Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited. The registrar of the issue is Kfin Technologies Limited.
The company nets over 80 per cent of its revenue from exports to 15 global markets.
The equity shares of the company are proposed to be listed on the BSE and the NSE.
Azad Engineering IPO GMP
The shares of Azad Engineering were being traded at ₹360 in the grey market. A grey market is an unofficial stock and applications market, where the investors trade for shares before they are officially listed in the stock market.
The estimated listing price of Azad Engineering IPO is ₹884, which is much higher than the IPO price of ₹524.