The Azad Engineering IPO has set its price band at ₹499 to ₹524 per equity share with a face value of ₹2. The subscription period for the IPO is scheduled from Wednesday, December 20, to Friday, December 22. The allocation to anchor investors is set for Tuesday, December 19.
Key details of the Azad Engineering IPO:
1. **Price Band and Valuation:**
– The price band is ₹499 to ₹524 per equity share.
– The price-to-earnings ratio (P/E) based on diluted earnings per share (EPS) for the financial year 2023 ranges from 278.77 times to 292.74 times.
– This compares to the average industry peer group P/E ratio of 77.43.
2. **Lot Size and Reservation:**
– The lot size for the Azad Engineering IPO is 28 equity shares, with multiples of 28 thereafter.
– The IPO has reserved not more than 50% of shares for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% for retail investors.
– A portion is also reserved for employees, with shares aggregating up to ₹4 crores.
3. **Issue Composition:**
– The IPO comprises a fresh issue of shares up to ₹240 crore and an offer for sale (OFS) of up to ₹500 crore by promoters and other selling shareholders.
– The total issue size is ₹740 crore.
4. **Business Profile:**
– Azad Engineering Limited is a producer of turbines and parts for aircraft, catering to original equipment manufacturers (OEMs) in the oil and gas, aerospace, defense, and energy sectors.
– The company’s products are mission-critical, intricately designed, and highly engineered.
– Sales of blades for the energy sector amounted to ₹1,142.92 million as of September 30, 2023.
5. **Listing Date:**
– The basis of allotment is tentatively scheduled for Tuesday, December 26.
– Refunds are expected to be initiated on Wednesday, December 27.
– Shares will be credited to the demat accounts of allottees on the same day.
– The anticipated listing date on BSE and NSE is Thursday, December 28.
6. **Grey Market Premium (GMP):**
– The Grey Market Premium for Azad Engineering IPO today is ₹0, indicating that shares are trading at their issue price of ₹524 with no premium or discount.
– The ‘Grey Market Premium’ reflects investors’ willingness to pay more than the issue price.
In summary, the Azad Engineering IPO is set to raise significant capital, and its pricing and subscription data will be closely monitored by investors. The grey market premium provides insights into market sentiment, with a premium indicating a potential demand for the shares above the official issue price.
