Azad Engineering Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Azad Engineering

CMP

1,732.85

+47.75 (2.83%)

  • DRHP
₹524

Offer Price

₹ 740.00 Cr

Issue Size

₹ 14,672

Min Investment

80.65x

Times Subscribed

28

Lot size

Time Line

  • 20
    Dec 2023
    Open
  • 22
    Dec 2023
    Close
  • 26
    Dec 2023
    Finalisation of Basis of Allotment
  • 27
    Dec 2023
    Initiation of Refunds
  • 27
    Dec 2023
    Transfer of Shares to Demat Account
  • 28
    Dec 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Leverage its industry-leading capabilities by continuing to diversify its customer base and increase penetration and wallet share with existing customers by entering into new component lines.

  • Augment its manufacturing capabilities, including by way of inorganic acquisitions, to better serve its customers and to build scale, while delivering state of the art execution.

  • Strengthening its core capabilities across its focus industries.

  • Further reduce operating costs, improve operating efficiencies and deploy new technologies.

Products & Services

  • The Company manufactures complex and highly engineered precision forged and machined components that are mission and life-critical and hence, some of its products have a "zero parts per million" defects requirement.

Strengths

  • Engineered for success and a preferred name in the manufacturing of highly engineered, complex, and mission and life- critical high precision components for global OEMs growing competition from China and Eastern Europe.

  • 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.

Risks

  • Its business is dependent on the sale of its products to key customers. The loss of any of the company key customers or loss of revenue from sales to its customers could have a material adverse effect on its business, results of operations, financial condition, cash flows and future prospects.

  • The company is highly dependent on its Hyderabad facilities for the entire portion of the company revenue from operations. Any disruption, breakdown or shutdown of its Hyderabad facility may adversely affect the company`s business, results of operations, financial condition, cash flows and future prospects.

  • Any failure to compete effectively in the highly competitive global industry of high precision and mission critical components manufacturing could have a material adverse effect on its business, results of operations, financial condition, cash flows and future prospects.

  • Its contracts/ purchase orders may not be indicative of the company future growth rate or new business orders its will receive in the future. Further, the company may not realize all of the revenue expected from its contracts/ purchase orders.

  • The global nature of its operations exposes it to numerous risks that could materially adversely affect its business, results of operations, financial condition, cash flows and future prospects.

Company Promoters

Promoters Holding

Issue For IPO
12.65%
Pre Holding

77.46%

Post Holding

64.81%

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 194.47 (58.50%) 251.68 (29.40%) 4.23 (-)
Gross Profit 194.47 (58.50%) 251.68 (29.40%) 4.23 (-)
Net Income 194.47 (58.50%) 251.68 (29.40%) 4.23 (-)
Assets 194.47 (58.50%) 251.68 (29.40%) 4.23 (-)
Liabilities 194.47 (58.50%) 251.68 (29.40%) 4.23 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Azad Engineering Ltd 251.68 8.47 507.15 303.16 4.23 51.29 1,234.79 3.27 0.59
MTAR Technologies Ltd 573.75 103.42 1,063.31 1,063.31 16.67 33.62 201.61 9.72 0.23
Paras Defence and Space Technologies Ltd 222.43 36.06 520.54 520.54 9.70 9.25 95.29 6.92 0.04
Dynamatic Technologies Ltd 1,315.77 42.79 1,668.80 1,668.80 7.89 67.32 798.19 2.56 1.14
Triveni Turbine Ltd 1,247.55 192.55 1,339.88 1,339.88 25.32 5.97 23.95 14.37 0.00

Book Running Managers

  • Axis Capital Ltd
  • ICICI Securities Ltd
  • SBI Capital Markets Ltd
  • Anand Rathi Advisors Ltd

Registrar & Transfer Agent

KFin Techologies Ltd

Karvy Selenium Tow-B,
31&32 Financial Dist,
Nanakramguda - Hyderabad-500032
Phone : 91-40-67162222 Fax: 91-40-23001153/23420814

Company Contact Information

90/C 90/D Phase 1 I D A,
Jeedimetla,
Hyderabad - 500055
Phone : +91 40 2309 7007 Email : cs@azad.in www.azad.in

Offer Related Information

Initial public offer of 14,122,108 equity shares of face value of Rs. 2 each ("Equity Shares") of Azad Engineering Limited ("Company") for cash at a price of Rs. 524 per equity share (including a securities premium of Rs. 522 per equity share) ("Offer Price") aggregating up to Rs. 740.00 crores* (the "Offer") comprising a fresh issue of 4,580,151* equity shares aggregating up to Rs. 240.00 crores* by the company ("Fresh Issue") and an offer for sale of 9,541,957* equity shares aggregating up to... More

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