Azad Engineering Ltd IPO opens on December 20. Check IPO Details Issue Date Price

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Azad Engineering Ltd IPO opens on December 20. Check IPO Details Issue Date Price

December 21, 2023
Azad Engineering Ltd IPO opens on December 20. Check IPO Details Issue Date Price

Azad Engineering Limited is coming out with a fresh public issue to raise Rs 740 crores from the market.

Below are the details of the Azad Engineering Limited IPO:

  • Issue opens – December 20 (Wednesday)
  • Issue closes – December 22 (Friday)
  • Issue size – Rs 740 crores
  • Price band – Rs 499 to 524 per equity share
  • Bid lot – 28 shares and in multiples thereof

And here are some details of the company and further details on the Azad Engineering Limited IPO.

Company details:

  • Azad Engineering Limited (“Azad”) was incorporated on September 14, 1983.  Azad is one of the key manufacturers of qualified product lines supplying to global original equipment manufacturers (“OEMs”) in the energy, aerospace and defence, and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components. Azad manufactures complex and highly engineered precision forged and machined components that are mission and life-critical and hence, some of their products have a “zero parts per million” defects requirement. 
  • As of September 30, 2023, they generated a revenue of ?114.29 crore from sale of airfoils / blades for the energy industry, which comprised of 72% of their revenue from operations. The company competes with manufacturers from China, Europe, USA, and Japan. Their customers include global OEMs across the energy, aerospace and defence, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE
  • The company’s manufacturing infrastructure comprises 4 facilities in India, at Hyderabad with a total manufacturing area of ~20,000 sq. mtr. Within the energy turbine industry, airfoils contribute to the majority of the sales for the company. Other than this, the company also supplies other special machined components for energy turbines. Their aerospace and defence products are largely utilized in commercial and defence aircraft to provide propulsion, actuation, hydraulics, and flight control. At an overall level, the company delivered 0.31 crore units between FY09 to FY23. Further, they have 2 manufacturing facilities in the pipeline. 
  • Azad supplies components to some of the key manufacturers of energy turbines. In FY23, the company supplied to the customers which control approximately 70% of the gas turbine market (based on technology ownership and number of units ordered in H1 2022) globally. 
  • Azad supplies components to OEMs as well as Tier 1 manufacturers in the aerospace & defence segment. The company has supplied critical components for aircraft platforms such as B737, B737 Max, B747, B777, B777X, A320, A350, A355, A350 XWB, Gulfstream G550, and is in discussions for supply of components for new engine platforms.
  • The company is also backed by Piramal Structured Credit Opportunities Fund, DMI Finance Pvt Ltd and other investors.

Issue Size: Rs. 740 crores

Employee Reservation: Equity Shares aggregating upto ? 4 Cr

Issue break-up:

QIB – 50% of the net offer – Rs 368.00 crores

NIB – 15% of the net offer – Rs 110.40 crores

RET – 35% of the net offer – Rs 257.60 crores

Listing: BSE and NSE

Registrar: KFin Technologies Limited

UPI: All Retail & NII bidders' (bids up to Rs. 5,00,000) applications through brokers are compulsorily in UPI Mode.

Note:

Application made using third-party UPI or ASBA Bank A/c are liable to be rejected.

The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs 5,00,000) shall expire at 5 PM on the closing day of the IPO i.e. Friday, December 22, 2023     

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