Azad Engineering is set to launch its Initial Public Offering (IPO) on December 20, 2023, with the subscription window closing on December 22, aiming to raise approximately ₹740 crores. The IPO comprises a fresh issue of ₹240 crores and an offer for sale (OFS) of up to ₹500 crores of equity shares with a face value of ₹2 each. The retail quota stands at 35%, QIB at 50%, and HNI at 15%.
As a prominent manufacturer in the aerospace, defense, energy, and oil and gas industries, Azad Engineering specializes in producing highly engineered, complex, and mission-critical components. Notably, some of their products have a stringent “zero parts per million” defects requirement.
The company’s offerings include 3D rotating airfoil/blade portions of turbine engines and critical components for various applications, such as gas, nuclear, and thermal turbines used in industrial energy generation, as well as defense and civil aircraft and spaceships.
Azad Engineering’s clientele includes global Original Equipment Manufacturers (OEMs) like General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE. The company plays a vital role in the global supply chain, supplying components to countries such as the USA, China, Europe, the Middle East, and Japan.
From ₹1,240 million in FY20, Azad Engineering’s revenue has surged to ₹2,516.75 million in FY23, reflecting a Compound Annual Growth Rate (CAGR) of 27%. The adjusted EBITDA margin for FY23 stands at an impressive 31.61%. The company is recognized as one of the fastest-growing manufacturers in terms of revenue growth and boasts one of the highest EBITDA margins among key players for machined components in the industries it serves.
The funds raised through the IPO will be allocated to fund capital expenditure, repayment/prepayment of certain borrowings, and general corporate purposes.
**IPO Details:**
– IPO Open: December 20, 2023
– IPO Close: December 22, 2023
– IPO Size: Approx ₹740 Crores
– Fresh Issue: Approx ₹240 Crores
– Offer for Sale: Approx ₹500 Crores
– Face Value: ₹2 Per Equity Share
– IPO Listing on: BSE & NSE
– Retail Quota: 35%
– QIB Quota: 50%
– NII Quota: 15%
**IPO Allotment & Listing Dates:**
– IPO Allotment: December 26, 2023
– Refunds: December 27, 2023
– Credit to Demat Account: December 27, 2023
– IPO Listing: December 28, 2023
The minimum market lot for the Azad Engineering IPO is [.] shares with a minimum application amount of ₹[.]. Retail investors can apply for up to 13 lots, and the application lot size for different categories is specified.
Investors can check the IPO subscription status and allotment status on the respective platforms. Azad Engineering IPO forms can be submitted via ASBA in your bank account or downloaded from NSE and BSE.
The financial report indicates positive growth, with revenue, expenses, and profit after tax (PAT) figures showing an upward trend from 2021 to the first half of 2024. The company’s valuation for FY2023 includes an Earning Per Share (EPS) of ₹1.79, Return on Net Worth (RoNW) of 4.23%, and Net Asset Value (NAV) of ₹42.30 per Equity Share.
Peer companies in the industry include MTAR Technologies Limited, Paras Defence and Space Technologies Limited, Dynamatic Technologies Limited, and Triveni Turbine Limited.
The promoters of Azad Engineering include Rakesh Chopdar. Brokerage firms’ IPO reviews are yet to be updated. The IPO listing date is set for December 28, 2023.
