Abu Dhabi Investment Authority swoops up 4 lakh shares, propelling Azad Engineering shares to new highs

29 Dec 2023 , 01:28 PM

On December 29, after the sovereign wealth fund Abu Dhabi Investment Authority purchased 3.98 lakh equity shares for Rs 28.65 crore at an average price of Rs 719.9 apiece, shares of Azad Engineering continued to rise, rising 5.5 percent to Rs 714.

The investment body is purchasing shares at a premium of Rs. 37 over the Rs. 524 issue price. The machined components manufacturer supported by Sachin Tendulkar made its debut on December 28 and was listed at a 29 percent premium, or Rs 677.5.

From the proceeds of the new offer, the company plans to purchase plant and machinery worth Rs 60.4 crore and settle debt totaling Rs 138.19 crore. As of September 2023, its debt was Rs 154.2 crore. The remainder will be applied to basic business needs.

The company offered new shares for Rs 240 crore as part of the Rs 740-crore offering, while existing owners offered to sell their shares for Rs 500 crore.

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