Azad Engineering Files IPO Draft Documents with Sebi to Raise Rs 740 Crore

3 Oct 2023 , 01:27 PM

Azad Engineering has submitted draft documents to the capital markets regulator Sebi, aiming to raise Rs 740 crore through an initial public offering (IPO).

The IPO from the company consists of two parts: a fresh issue of up to Rs 240 crore and an offer-for-sale (OFS) of equity shares totaling up to Rs 500 crore. This includes the sale of equity shares worth up to Rs 170 crore by promoter Rakesh Chopdar, equity shares valued at up to Rs 280 crore by Piramal Structured Credit Opportunities Fund, and equity shares amounting to up to Rs 50 crore by DMI Finance, as outlined in the draft red herring prospectus (DRHP).

The proceeds generated from the fresh issues will be allocated towards financing the company’s capital expenditures, debt repayment, and general corporate purposes, according to the draft documents filed with SEBI.

Azad Engineering is a prominent manufacturer in its field, specializing in supplying global original equipment manufacturers (OEMs) in the aerospace and defense, energy, and oil and gas sectors. The company’s core competency lies in producing highly engineered, intricate components vital for mission-critical and life-critical applications.

Azad Engineering manufactures precision forged and machined components that are both complex and highly engineered, serving essential roles in various industries.

Leading the IPO are book-running lead managers Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors.