The shares of Azad Engineering will debut on the exchanges in the present day. Forward of the itemizing, the corporate’s shares are buying and selling with a premium of Rs 172 within the unlisted market. The corporate’s shares are prone to listing with a premium of 33%. The difficulty was priced within the vary of Rs 499-524.
The IPO of Azad Engineering acquired good response from buyers with 80.6 instances subscription at shut. The class reserved for QIB was subscribed essentially the most at 179 instances, adopted by NIIs at 87 instances. The retail half acquired 23.7 instances bids.
The difficulty was a recent fairness of Rs 240 crore and a proposal on the market (OFS) of Rs 500 crore. Below the OFS, promoter Rakesh Chopdar, Investor Piramal Structured Fund, and DMI Finance offloaded shares.
Analysts are optimistic on the corporate over its sturdy monetary monitor report and superior outlook on progress. “We count on Azad to commerce at a premium to friends submit the itemizing,” mentioned Nirmal Bang.
The corporate is without doubt one of the key producers of certified product traces supplying to world authentic tools producers within the aerospace and defence, vitality, and oil and gasoline industries.
It makes complicated and extremely engineered precision cast and machined elements which can be mission and life-critical and therefore, a few of their merchandise have a zero components per million defects requirement.Within the monetary 12 months 2023, the corporate’s income from operations rose 31% year-on-year to Rs 261 crore, whereas web revenue for a similar interval fell 71% to Rs 8.4 crore.
The income of the corporate grew at a CAGR of 43% between FY21 and FY23 and PAT margin grew at a CAGR of 49% in the identical interval.
Axis Capital, ICICI Securities, SBI Capital Markets and Anand Rathi acted because the e book operating lead managers to the problem.