Sachin Tendulkar-backed Azad Engineering's shares list at 37% premium
Azad Engineering's shares made a strong debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today. The stocks were listed at Rs. 720 on NSE, a 37.40% premium to the issue price of Rs. 524 per share, and at Rs. 710 on BSE, a 35.50% premium to the issue price. The company's initial public offering (IPO) was in high demand, with a total subscription of 83.04 times across all investor categories.
IPO subscription breakdown and allotment details
The IPO attracted significant interest from various investors. Retail investors subscribed 24.51 times, while Qualified Institutional Buyers (QIB) subscribed a massive 179.64 times. Non-Institutional Investors (NII) booked 90.24 times their portion. The bidding for the IPO took place from December 20 to December 22, with allotment finalized on December 26. Azad Engineering raised Rs. 740 crore through the IPO, which included a fresh issue of Rs. 240 crore and an offer for sale (OFS) of Rs. 500 crore.
What's the company's main line of work?
Azad Engineering is a leading manufacturer of high-quality products for global original equipment manufacturers (OEMs) in the energy, aerospace, defense, and oil and gas industries. The company has four advanced manufacturing facilities in Hyderabad, capable of producing high-precision forged and machined components. It also has two large manufacturing facilities in the pipeline.
The company's financial performance
Azad Engineering reported turnovers of Rs. 123 crore, Rs. 194 crore, and Rs. 252 crore for FY21, FY22, and FY23 respectively. The company posted adjusted net profits of Rs. 20.4 crore, Rs. 33.1 crore, and Rs. 45.2 crore for the same periods. Prior to the IPO, cricketer Sachin Tendulkar made an undisclosed strategic investment in the company, acquiring a small stake.
