Azad Engineering IPO Ready for Takeoff: December 20-22 Subscription, Price Band Set at Rs 499-524

15 Dec 2023 , 11:44 AM

Telangana-based Azad Engineering has set the price band for its Rs 740-crore public issue at Rs 499-524 per equity share. 

The IPO is scheduled to be open for subscription from December 20 to 22, with the anchor book launching on December 19. The basis of allotment is expected on December 26, and refunds and the credit of shares to demat accounts are scheduled for December 27. The listing date is set for December 28.

The IPO comprises a fresh issue of shares worth Rs 240 crore by the company and an offer-for-sale (OFS) of shares worth Rs 500 crore by existing shareholders. Promoter Rakesh Chopdar will offload shares worth Rs 204.97 crore, and investor Piramal Structured Credit Opportunities Fund will sell Rs 260.85 crore shares. Another selling shareholder, DMI Finance, will sell shares worth Rs 34.18 crore in the OFS.

Promoter Rakesh Chopdar holds a 78.61 percent stake, and Piramal Structured Credit Opportunities Fund holds a 9.13 percent stake in the engineered precision forged and machined components maker.

Azad Engineering, which manufactures products for global original equipment manufacturers in the energy, aerospace and defense, and oil and gas industries, plans to utilize Rs 60.4 crore for buying plant and machinery. The net fresh issue proceeds of Rs 138.19 crore will be used for repaying debts, with the remaining funds set aside for general corporate purposes.

The IPO has reserved half of the offer size for qualified institutional buyers, 15 percent for high net worth individuals, and the remaining 35 percent for retail investors. The minimum bid is for 28 equity shares, and the minimum application size for retail investors is Rs 14,672 for 28 shares. Retail investors can invest up to Rs 2 lakh in the IPO.

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