Azad Engineering Ltd Seeks ₹740 Crore in IPO

Azad Engineering Ltd Seeks ₹740 Crore in IPO
Azad Engineering Ltd Seeks ₹740 Crore in IPO
Azad Engineering Ltd Seeks ₹740 Crore in IPO
Azad Engineering Ltd Seeks ₹740 Crore in IPO

Azad Engineering Ltd Seeks ₹740 Crore in IPO

Azad Engineering Ltd Seeks ₹740 Crore in IPO

Azad Engineering Ltd has taken a significant step towards expanding its operations by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise ₹740 crore through an initial public offering (IPO), marking a pivotal moment in its growth trajectory.

The IPO Structure

The IPO plan comprises two components: a fresh issue of up to ₹240 crore and an offer-for-sale (OFS) of equity shares amounting to ₹500 crore. The latter involves the sale of equity shares by a promoter and investors, as detailed in the draft papers.

Key Players in the OFS

In the offer-for-sale (OFS) segment, promoter Rakesh Chopdar intends to sell equity shares valued at up to ₹170 crore. Additionally, Piramal Structured Credit Opportunities Fund plans to divest equity shares worth up to ₹280 crore, while DMI Finance seeks to offload equity shares amounting to ₹50 crore.

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Utilization of Fresh Issue Proceeds

The funds generated from the fresh issue are earmarked for specific purposes. They will be channeled towards funding the company’s capital expenditure, debt repayment, and general corporate requirements, in line with the outlined objectives in the draft papers.

Book-Running Lead Managers

Azad Engineering’s IPO will be overseen by esteemed book-running lead managers, including Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors. Their involvement underscores the significant interest and confidence in the company’s growth potential.Azad Engineering:

A Leading Manufacturer

Azad Engineering holds a prominent position as a manufacturer of highly specialized components, serving global original equipment manufacturers (OEMs) across diverse industries. The company’s expertise is particularly evident in the aerospace and defense, energy, and oil and gas sectors. It specializes in producing intricate, engineered, and mission-critical components.

Strategic Investment by Sachin Tendulkar

Notably, earlier this year, cricket legend Sachin Tendulkar made an undisclosed strategic investment in Azad Engineering, further enhancing the company’s profile and signaling its potential for growth and innovation.

Impressive Revenue Growth

Azad Engineering has demonstrated remarkable financial performance, with its revenues surging from ₹124 crore in the financial year 2020 to an impressive ₹2,517 crore in the financial year 2023. This substantial growth translates to a compound annual growth rate (CAGR) of 27 percent.

Esteemed Clientele

The company’s clientele includes industry giants such as General Electric, Honeywell International Inc, Mitsubishi Heavy Industries, Ltd, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE, underscoring its reputation for delivering high-quality components to global leaders.Azad Engineering’s IPO represents a significant milestone in its journey towards expansion and continued excellence in delivering mission-critical components to its valued clients.

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