Azad Engineering Attracts Top-tier Investors with Rs 220.8 Crore Anchor Book Ahead of IPO

20 Dec 2023 , 09:34 AM

Azad Engineering, a leading manufacturer of engineered precision forged and machined components, successfully raised Rs 220.8 crore from anchor investors on December 19, one day before the commencement of its Initial Public Offering (IPO). The company garnered interest from renowned investors, including Abu Dhabi Investment Authority, Nippon Funds, and ICICI Prudential Mutual Fund.

Anchor Investors: Prominent investors such as Kotak Mahindra Trustee, Tata MF, Eastspring Investments, Bandhan MF, HDFC Life Insurance, Bajaj Allianz Life Insurance, and Max Life Insurance also participated in Azad Engineering’s anchor book. The company finalized the allocation of 42,13,731 equity shares to anchor investors at a price of Rs 524 per share, after consultation with merchant bankers.

IPO Details: Azad Engineering’s Rs 740-crore IPO is set to open for subscription on December 20, featuring a price band of Rs 499-524 per share. The subscription period will conclude on December 22. The IPO comprises a mix of fresh issues of shares worth Rs 240 crore by the company and an Offer-for-Sale (OFS) of Rs 500 crore worth shares by existing shareholders.

Promoter Rakesh Chopdar holds a majority stake in Azad Engineering, with a 78.61 percent shareholding. Piramal Structured Credit Opportunities Fund is the second-largest shareholder, owning a 9.13 percent stake in the company.

Utilization of Proceeds: Azad Engineering plans to allocate Rs 60.4 crore of the net fresh proceeds towards purchasing plant and machinery. Additionally, Rs 138.19 crore will be utilized for debt repayment, with the remaining funds earmarked for general corporate purposes.

Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors are the appointed merchant bankers overseeing the IPO process, ensuring a smooth and successful offering.