IPO screener: Tendulkar, Sindhu-backed Azad Engineering to list today

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Shares of Hyderabad-based Azad Engineering will be listed on the bourses today. The company, whose IPO saw an overwhelming response from all category of investors, has fixed the issue price at ₹524, at the upper end of the price band of ₹499-525. The IPO was subscribed over 83 times.

The ₹740-crore IPO from Hyderabad-based Azad saw the quota set aside for retail investors receiving bids 24.51 times, while that for non-institutions was 90.24 times. The QIBs portion was subscribed a whopping 179.64 times. The issue also has a reservation for employees and thier quota was subscribed 14.71 times.

Several sports personalities including Sachin Tendulkar, PV Sindhu, VVS Laxman, and Saina Nawal, had invested in the company.

Issue details

The initial public offering comprised a fresh issue of ₹240 crore and an offer-for-sale of ₹500 crore by promoters and external investors, including Piramal Structured Credit Opportunities Fund and DMI Finance.

Anchor investors

Ahead of the IPO, the company had mopped up ₹220.80 crore from anchor investors, including Nippon Life India, Abu Dhabi Investment, ICICI Prudential, Nomura, Ashoka India Equity, Kotak Mahindra Mutual, Tata Infrastructure Fund, Bandhan Infrastructure Fund, Edelweiss Mutual, HDFC Life Insurance, Bajaj Allianz, Max Life Insurance, and Eastspring Investment India.

The company proposes to utilise the proceeds from the offer to partially fund capital expenditure for its ₹280 crore expansion by setting up two units towards the end of the next fiscal and for repaying/pre-paying debt of around ₹90 crore.

Investors to remain stay invested

Even after the IPO, the company will continue to have external investors in the form of HNIs (High Networth Individuals), including sports stars like Sachin Tendulkar, VVS Laxman, PV Sindhu, and Saina Nehwal. Together, these HNIs and the employees will own around 12 per cent of the firm.

About Azad Engineering

Azad Engineering is a niche manufacturer of product lines in aerospace and defence, energy, and oil and gas industries. It manufactures highly engineered, complex, and mission and life-critical components. Some of its key products include 3D rotating air-foil portions of turbine engines and other critical products for defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power.

In the energy space, the company boasts international clients such as Siemens Energy, General Electric, Honeywell International, Mitsubishi, Eaton Aerospace and MAN Energy Solutions.

Merchant bankers to the issue are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors.