Azad Engineering IPO GMP, review, Date, Price, Allotment 2023

Azad Engineering  IPO description – Azad Engineering   India Limited is coming up with its Initial public offering. The IPO will be open for subscription on December 20, 2023

 

 

Azad Engineering IPO Details

 

Azad Engineering IPO Dates 20 – 22 December 2023
Azad Engineering IPO Price INR 499 – 524 per share
Fresh issue 4,580,151 shares (INR 228.55 – 240 crore)
Offer For Sale 9,541,957 shares (INR 476.14 – 500 crore)
Total IPO size 14,122,108 shares (INR 704.69 – 740 crore)
Minimum bid (lot size) 28 shares (INR 14,672)
Face Value  INR 2 per share
Retail Allocation 35%
Listing On BSE, NSE

 

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Azad Engineering IPO – Date Schedule

 

IPO Opening Date 20 December 2023
IPO Closing Date 22 December 2023
Finalization of Basis of Allotment 26 December 2023
Refunds Initiation 27 December 2023
Transfer of shares to demat accounts 27 December 2023
Listing Date of IPO 28 December 2023

 

 

Azad Engineering IPO – About Company 

 

Azad Engineering Limited emerges as a crucial player in the global manufacturing landscape, specializing in the production of highly engineered components for diverse industries such as aerospace and defense, energy, and oil and gas. These components, recognized for their complexity and mission-critical nature, find their way to original equipment manufacturers (“OEMs“) across the globe.

Noteworthy clients in the aerospace and defense, energy, and oil and gas sectors, including industry giants like General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE, have consistently relied on Azad Engineering Limited for their supply chain needs.

Since its establishment, Azad Engineering Limited has successfully distributed its products to countries spanning the USA, China, Europe, the Middle East, and Japan. The company’s extensive product portfolio encompasses 3D rotating airfoil/blade sections tailored for turbine engines and critical components vital for defense and civil aircraft, spaceships, and industrial applications related to gas, nuclear, and thermal turbines.

In the realm of aerospace and defense, Azad Engineering Limited takes pride in delivering airfoils/blades and diverse components for engines, auxiliary power units (“APUs”), hydraulics, actuating systems, flight controls, fuel and inerting sections. This includes support for both commercial and defense aircraft, spacecraft, and an array of defense systems, including critical components for missiles.

The company’s proven track record extends to supplying essential components to major commercial aircraft manufacturers such as B737, B737 Max, B747, B777, B777X, A320, A350, A355, A350 XWB, and Gulfstream G550. Azad Engineering Limited’s dedication to precision and excellence positions it as a prominent and reliable entity within the global market for highly engineered components.

 

Azad Engineering IPO GMP, Details, Date, Price, Allotment 2023
Azad Engineering IPO GMP, Details, Date, Price, Allotment 2023

 

Azad Engineering IPO – Industry Overview 

 

India hasthe potential to become one of the largest manufacturing hubs in the world. It has a large population base with growing income, considerably younger proportion of workforce and business friendly sector policies which provide the opportunity to become a global manufacturer. The World Economic Forum in 2021, identified that India’s manufacturing sector can contribute to over US$ 500 billion to the economy in 2030. 

India has traditionally been a foreign trade deficit nation. The country is a net exporter of services, but it is a net importer of global goods. The total exports from India have grown at a CAGR of 9% in the last 5 years. 

Engineering products (across multiple HS codes) account for 23% of total merchandise exports from India and the exports in this segment have grown at a CAGR of 6.3% between FY18 to FY23. 

Over the last 5 years, the global energy consumption has witnessed a steady upward trend with annualized growth rate of ~1.8% from 2017-2022, driven by macroeconomic factors such as increase in income levels, urbanization, and industrialization. Even though energy consumption growth slowed down in 2022 (about 2%) as compared to 2021 (about 7%), that was primarily a result of lower base in 2020 due to temporary reduction resulting from the COVID-19 pandemic.

 

Azad Engineering IPO – Financial Performance

 

FY 2022 FY 2023 H1 FY 2024
Revenue 194.47 251.68 158.75
Expenses 159.13 248.36 137.92
Net income 29.46 8.47 26.89
Margin (%) 15.15 3.37 16.94

Figures in INR Crores

 

Azad Engineering IPO – Valuations & Margins

 

FY 2021 FY 2022 FY 2023
EPS 2.53 6.49 1.79
PE ratio 278.77 – 292.74
RONW (%) 12.65 25.37 4.23
NAV 20.02 25.58 42.30
ROCE (%) 12.09 16.95 12.99
EBITDA (%) 22.94 32.02 28.72
Debt/Equity 0.97 1.64 1.47

 

Azad Engineering IPO – Prospectus

 

 

Azad Engineering IPO – Competitive Strengths

 

  • Engineered for success and a preferred name in the manufacturing of highly engineered, complex and mission and lifecritical high precision components for global OEMs despite growing competition from China, Europe, USA and Japan.
  • Supplying to OEMs with high global market penetration.
  • Long-standing and deep customer relationships.
  • Advanced manufacturing facilities with a diverse range of products and solutions with focus on innovation and cost competitiveness.
  • Consistent track record of financial performance.
  • Experienced Promoter and management team backed by marquee investors.

 

Azad Engineering IPO – Object Of The Issue

 

  • Funding capital expenditure of the Company.
  • Repayment/ prepayment, in part or full, of certain borrowings availed by the Company.
  • General corporate purposes.

 

Azad Engineering IPO GMP Today

 

Date IPO GMP Kostak Subject to Sauda
18 December 2023 400 8,000
16 December 2023 400 8,200

 

Azad Engineering IPO – Allotment Status

Azad Engineering IPO allotment status will be available on the KFin Tech website website. Click on this link to get allotment status.

Azad Engineering IPO – Lots Size & Price

 

Application Lots Shares Amount ( Cut-Off)
Retail (Min) 1 28 14,672
Retail (Max) 13 364 1,90,736
S-HNI (Min) 14 392 2,05,408
S-HNI(Max) 68 1904 9,97,696
B-HNI(Min) 69 1932 10,12,368

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