Telangana based Azad Engineering announces IPO: Rs 740 Cr
Issue Opens on Dec 20 and Closes on Dec 22
Azad Engineering (AE) IPO price band is set at ₹499 to ₹524 per share
AE overseas clients include Boeing, GE, Mitsubishi, Siemens Energy, Honeywell, Eaton, GE Aerospace, Baker Hughes and domestic giants like HAL, Godrej, TATA, Mahindra Aerospace among others
BILKULONLINE
Ahmedabad, Dec 16: Azad Engineering IPO is a book built issue of Rs 740.00 crores. The issue is a combination of fresh issue of Rs 240.00 crores and offer for sale of Rs 500.00 crores.
Azad Engineering (AE) IPO opens for subscription on December 20, 2023 and closes on December 22, 2023. The allotment for the Azad Engineering IPO is expected to be finalized on Tuesday, December 26, 2023. Azad Engineering IPO will list on BSE, NSE with tentative listing date fixed as Thursday, December 28, 2023.
Azad Engineering IPO price band is set at ₹499 to ₹524 per share. The minimum lot size for an application is 28 Shares. The minimum amount of investment required by retail investors is ₹14,672. The minimum lot size investment for sNII is 14 lots (392 shares), amounting to ₹205,408, and for bNII, it is 69 lots (1,932 shares), amounting to ₹1,012,368.
AE’s overseas customers include global OEMs such as General Electric (aerospace), Honeywell International Inc. (for aerospace, building technologies, performance materials and technologies, and safety and productivity solutions), Mitsubishi Heavy Industries, Ltd. (engineering, electrical equipment and electronics), Siemens Energy Global GmbH & Co. KG (energy) and MAN Energy Solutions SE (energy).
Hyderabad-based AZAD Engineering is an engineering and technology solutions provider for global OEMs in the Clean Energy, Aerospace, Defence, Oil & Gas and SPS Industries.
Company’s external investors include Piramal Group and DMI Finance. As an aside, the company counts Sachin Tendulkar, PV Sindhu, Saina Nehwal, and VVS Laxman among its minority shareholders.
Rakesh Chopdar, Founder, Chairman & Managing Director of AZAD Engineering explained the functioning, strategies, business and vision while announcing the details of the forthcoming IPO. He said “We are one of the key manufacturers of our qualified product lines in the aerospace and defence, energy and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components. Our products include 3D rotating airfoil portions of turbine engines and other critical products for defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil and thermal power. The precision forged and machined components manufactured by us are highly complex and mission-critical and hence, some of them have a “zero parts per million” defects requirement.
“We operate in the aerospace and defence, energy and oil and gas industries and work with global original equipment manufacturers (OEM) operating in such industries and we have sales in more than 16 countries. We started our core manufacturing in 2008 and are a key player in the industries in which we operate. Our Company has high-precision manufacturing ability for precision forging and machining and caters to prominent OEMs in the global supply chain.
Our Company has over 15 years of experience as a tier I supplier of high-precision precision forged and machined components in the industries in which we operate. The demand for these products is driven by the orders for these components, where such orders emerge for requirements relating to military aircrafts, commercial aircrafts, spaceships, gas, hydrogen, nuclear and thermal turbine engines and oil and gas components or the service market and the demand for both in turn is driven by the consumption and growth in energy demand” added Chopdar.
Rakesh Chopdar also mentioned that “We propose to utilise the net proceeds of the IPO for funding capital expenditure of the company, repayment of debt and general corporate purposes”.
Vishnu Malpani, whole-time director of the Azad Engineering explained “We have in house capabilities and proficiency in engineering, design, tooling, material development coupled with a range of finishing and assembly operations focussed on continuous improvements to our manufacturing and quality processes. We believe our process design capabilities and several years of experience of manufacturing life and mission critical portions of engines enable us to develop high quality and cost-effective solutions for the demanding applications of global OEMs, which differentiates us from our global competitors. We are a technology-driven and innovative company with manufacturing facilities and high-quality products meeting global standards”.
Jyoti Chopdar is another whole-time director while Independent Directors are Micheal Joseph Booth, Subba Rao Ambati and Madhushree Vemuru.
Ronak Jajoo is the Chief Financial Officer, Ashok Gentyala, Head engineering and operations and R R Balaji is the Head Business Growth of Azad Engineering.
Disclaimer: Investors must study and learn on their own all about the company before investing in it.
