Azad Engineering IPO subscribed 83 times, allotment likely on December 26

Azad Engineering IPO witnessed a staggering subscription rate of 83.04 times, marking a significant milestone in the financial markets. The public issue, which opened for subscription on December 20 and concluded on December 22, 2023, is now poised for the allotment process scheduled for Tuesday, December 26, 2023.

The subscription numbers reveal a robust demand across investor categories, with the retail segment subscribing 24.51 times, the Qualified Institutional Buyers (QIB) category at an astounding 179.64 times, and the Non-Institutional Investors (NII) category registering a remarkable 90.24 times subscription.

Azad Engineering IPO, a book-built issue with a total size of Rs 740 per cent crores, comprises a fresh issue of 0.46 crore shares amounting to Rs 240 per cent crores and an offer for sale of 0.95 crore shares totaling Rs 500 per cent crores.

The price band for Azad Engineering IPO was set at Rs 499 to Rs 524 per share, with a minimum lot size of 28 shares. Retail investors need a minimum investment of Rs 14,672, while the minimum lot size for sNII (small Non-Institutional Investors) is 14 lots (392 shares), totaling Rs 205,408, and for bNII (big Non-Institutional Investors), it is 69 lots (1,932 shares), amounting to Rs 1,012,368.

The IPO is managed by Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited, with Kfin Technologies Limited acting as the registrar for the issue.

Azad Engineering IPO, with a tentative listing date fixed for Thursday, December 28, 2023, is expected to make waves on both BSE and NSE.

About Azad Engineering Limited

Founded in 1983, Azad Engineering Limited specialises in manufacturing aerospace components and turbines. The company caters to original equipment manufacturers (OEMs) in diverse industries, including aerospace, defense, energy, and oil and gas.

The firm's highly engineered, mission-critical products have garnered a global clientele, including the USA, China, Europe, the Middle East, and Japan. As of September 30, 2023, Azad Engineering reported revenue of Rs 1,142.92 million from the sale of blades for the energy industry.

Azad Engineering currently operates four manufacturing facilities in Hyderabad, Telangana, and has plans to establish two additional units in Siddipet and Sangareddy districts, Telangana.

Objects of the Issue

The net proceeds from the fresh issue are earmarked for funding capital expenditure, repayment/prepayment of certain borrowings, and general corporate purposes.

Azad Engineering IPO GMP

As investors eagerly await the allotment results, the Grey Market Premium (GMP) stands at Rs 305, as of December 25, according to Investor Gain. With a price band of Rs 524, Azad Engineering IPO's estimated listing price is Rs 829 (cap price + today's GMP), projecting a gain of 58.21 per cent.