Azad Engineering Marks Impressive Debut on Stock Market

Azad Engineering Marks Impressive Debut on Stock Market

VoM News Desk | December 28, 2023 | 10:52 AM IST | Breaking News | Follow on Google News

Azad Engineering Marks Impressive Debut on Stock Market/Mint

Azad Engineering Marks Impressive Debut on Stock Market

Azad Engineering witnessed a remarkable stock market debut, starting at ₹720 per share on the National Stock Exchange (NSE), marking a substantial premium of 37.40% from its issue price of ₹524 per share.

On the Bombay Stock Exchange (BSE), the company’s shares began trading at ₹710.00 apiece, showing a premium of 35.50% to the issue price.

The IPO garnered significant investor interest, experiencing an overall subscription of 83.04 times.

Among the categories, the retail segment subscribed 24.51 times, the Qualified Institutional Buyers (QIB) category marked 179.64 times subscription, and the Non-Institutional Investors’ (NII) portion was oversubscribed 90.24 times.

Azad Engineering successfully raised ₹740 crore through its IPO, comprising a fresh issue of 46 lakh equity shares amounting to ₹240 crore and an offer for sale (OFS) of 95 lakh shares totaling ₹500 crore, with shares sold in a price band ranging from ₹499 to ₹524 per share.

The IPO opened for bidding on December 20, concluded on December 22, and the IPO allotment was completed on December 26, setting the listing date for December 28.

Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Securities acted as the book running lead managers for the IPO, with Kfin Technologies serving as the IPO registrar.

Azad Engineering stands as a key manufacturer of sophisticated product lines catering to global original equipment manufacturers (OEMs) in energy, aerospace and defense, and oil and gas sectors, specializing in highly engineered, complex, mission, and life-critical components. The company operates four advanced manufacturing facilities in Hyderabad, Telangana, and has two large manufacturing facilities in the pipeline.

On the financial front, the company reported substantial growth in turnover, achieving ₹123 crore, ₹194 crore, and ₹252 crore for FY21, FY22, and FY23 respectively, on a consolidated basis.

Additionally, it posted adjusted net profits of ₹20.4 crore, ₹33.1 crore, and ₹45.2 crore during the same period.

VoM News Desk

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