Azad Engineering IPO day 2: Issue subscribed 6.76 times so far; check details inside

21 Dec 2023 , 12:55 PM

On the second day of bidding, December 21, the Azad Engineering IPO witnessed robust demand, being subscribed 6.76 times. Here’s a detailed breakdown of the subscription figures in different categories:

• Total Subscribed: The IPO received bids for 6.84 crore shares against the issue size of 1.01 crore shares, resulting in a subscription of 6.76 times.
• Retail Investors: Retail investors showed significant interest, subscribing 7.66 times their allotted quota.
• High Net-Worth Individuals (HNIs): High net-worth individuals subscribed 13.41 times the allotted quota.
• Qualified Institutional Buyers (QIBs): QIBs subscribed to 8% of the reserved portion.

The Rs 740 crore public offer, scheduled to close on December 22, comprises a fresh issue of shares worth Rs 240 crore and an offer for sale of shares worth Rs 500 crore by the stakeholders. The price band for the issue has been fixed at Rs 499-524 per share, with a lot size of a minimum of 28 equity shares, followed by multiples of 28. Click here to subscribe the IPO.

Of the fresh issue proceeds, the company plans to allocate Rs 60.4 crore for purchasing plant and machinery and repaying debt of Rs 138.19 crore, as per the offer document. The company’s borrowings stood at Rs 154.2 crore in the September quarter. The remaining funds will be utilized for general corporate purposes.

Azad Engineering reported a 71.2 percent decline in net profit from the previous year to Rs 8.5 crore in FY23, attributed to a weak operating margin and elevated finance costs. However, revenue from operations showed robust growth, increasing by 29.4 percent to Rs 251.7 crore. EBITDA was up 16 percent to Rs 72.3 crore, despite a margin drop of 330 basis points.

Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Anand Rathi Securities Limited are the lead managers to the IPO, while Kfin Technologies Limited is the registrar.