Azad Engineering Announces IPO Price Band at Rs 499-524; Subscription to Open on December 20

Azad Engineering, a prominent engineering precision forged and machined components manufacturer based in Telangana, has revealed the price band for its eagerly awaited Initial Public Offering (IPO). The company has set the price range at Rs 499 to Rs 524 per equity share for its Rs 740-crore IPO, which is scheduled to open for subscription from December 20 to December 22. Additionally, an anchor book will be launched for a single day on December 19.

Also Read: Azad Engineering IPO: Rs 740-crore Public Issue Opens on December 20

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The IPO comprises a fresh issue of shares worth Rs 240 crore by Azad Engineering and an offer-for-sale (OFS) of shares valued at Rs 500 crore by existing shareholders. Among these shareholders, promoter Rakesh Chopdar will be divesting Rs 204.97 crore worth of shares, while investor Piramal Structured Credit Opportunities Fund plans to sell Rs 260.85 crore worth of shares. Another selling shareholder, DMI Finance, will offer Rs 34.18 crore worth of shares in the OFS.

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Rakesh Chopdar, holding a 78.61 percent stake, and Piramal Structured Credit Opportunities Fund, holding a 9.13 percent stake, are the major shareholders in the company.

The proceeds from the fresh issue will be allocated as follows: Rs 60.4 crore for the acquisition of plant and machinery, Rs 138.19 crore for debt repayment, and the remaining funds will be reserved for general corporate purposes.

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Azad Engineering boasts a prestigious clientele that includes global original equipment manufacturers (OEMs) in the energy, aerospace and defense, and oil and gas sectors, such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries Ltd, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.

In terms of allotment, 50 percent of the offering size is earmarked for qualified institutional buyers (QIBs), while high-net-worth individuals (HNIs) are allocated 15 percent. Retail investors have access to the remaining 35 percent of shares. The minimum bid quantity is set at 28 equity shares, with multiples of 28 shares thereafter. Retail investors can participate with a minimum application size of Rs 14,672 for 28 shares, and their maximum investment in the IPO is capped at Rs 1,90,736 for 364 equity shares, in line with the regulatory limit of Rs 2 lakh for individual IPO investments.

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The esteemed merchant bankers overseeing the IPO are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors.

Azad Engineering’s IPO has garnered significant attention, and investors eagerly await its opening for subscription on December 20. The offering is poised to be a significant milestone in the company’s journey, providing opportunities for investors to be a part of its growth story.

Also Read: Primary Market: 7 IPOs hitting Dalal Street with 2 listings this week

For more information and updates on Azad Engineering’s IPO, interested parties can refer to the official websites of the company and the respective merchant bankers.

Disclaimer: This news article is for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their due diligence before participating in the IPO.

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