Azad Engineering Limited is all set to make its debut on Dalal Street on December 28 after its initial public offering garnered a positive response from investors.
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The allotment of shares for the IPO has already been finalised after it was oversubscribed over 83 times by the closing date on December 22. Investors who participated in the IPO bidding process can check whether they have been allotted shares of the company by
following this step-by-step guide to check status.
Latest GMP
As the aerospace components and turbine manufacturer gears up for its market debut tomorrow, the value of its shares on the unofficial grey market has witnessed a steep fall.
While Azad Engineering shares were commanding a premium of approximately Rs 300 apiece on the grey market on Tuesday, the value has drastically fallen to Rs 172 today. With this, the estimated listing price has been reduced to Rs 696, marking a 32.82 per cent premium over its issue price of Rs 524.
Though this is a disappointing development for investors who have been allotted shares of Azad Engineering, they should note that the grey market premium (GMP) is not always an accurate indicator of the actual listing price.
Key details about Azad Engineering IPO
Azad Engineering IPO offered shares in the price range of Rs 499-524 per share, with a lot size of 28 equity shares. The subscription window for the IPO was open from December 20 to December 22.
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The company successfully raised approximately Rs 740 crore through its primary offering, consisting of a fresh share sale of Rs 240 crore and an offer-for-sale (OFS) of up to 95,41,985 equity shares.
This IPO garnered significant attention from investors, as it was oversubscribed 83.04 times during the three-day bidding process. The qualified institutional bidders (QIBs) portion witnessed an overwhelming subscription of 179.66 times, while non-institutional investors subscribed 87.61 times. The segments reserved for retail investors and employees also saw substantial interest, with subscriptions of 23.79 times and 14.71 times, respectively.
Established in 1983, Azad Engineering specialises in manufacturing aerospace components and turbines. The company serves original equipment manufacturers (OEMs) in diverse industries, including aerospace, defence, energy, and oil and gas.
Azad Engineering is known for producing highly engineered, complex, mission-critical, and vital products.
Leading brokerage firms expressed positive sentiments towards the Azad Engineering IPO, recommending subscription. They highlighted the company’s robust track record, a well-defined business plan, competitive valuations, high entry barriers, strong margins, and solid financials, coupled with an experienced management team.
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The book running lead managers for the Azad Engineering IPO are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Shares and Stock Brokers. Kfin Technologies is the appointed registrar for the issue.
