Azad Engineering IPO Date, Price Band, GMP, Lot Size, Review, and Details
This post was most recently updated on December 31st, 2023
Azad Engineering is launching its IPO, aiming to raise ₹740 crores. This includes new shares worth ₹240 crores and an offer for sale of shares totaling ₹500 crores. The Azad Engineering IPO opens on December 20, 2023, and will close on December 22, 2023. If you’re interested, keep an eye out for the allotment results on December 26, 2023. The shares are expected to be listed on the BSE and NSE from December 28, 2023.
The price range for the Azad Engineering IPO is ₹499 to ₹524 per share. For retail investors, the minimum investment starts at ₹14,672 for 28 shares. For more substantial investments, the minimum for sNII is ₹205,408 for 392 shares, and for bNII, it’s ₹1,012,368 for 1,932 shares.
Don’t miss this opportunity to invest in Azad Engineering’s growth journey!
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Page Contents
Azad Engineering IPO Details
| IPO Date | December 20, 2023 to December 22, 2023 |
| Listing Date | December 28, 2023 |
| Face Value | ₹2 per share |
| Price Band | ₹499 to ₹524 per share |
| Azad Engineering IPO GMP | ₹440 |
| Azad Engineering IPO Listing Price Prediction | ₹964 |
| Lot Size | 28 Shares |
| Total Issue Size | 14,122,138 shares (aggregating up to ₹740.00 Cr) |
| Fresh Issue | 4,580,153 shares (aggregating up to ₹240.00 Cr) |
| Offer for Sale | 9,541,985 shares of ₹2 (aggregating up to ₹500.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 54,532,842 |
| Share holding post issue | 59,112,995 |
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Azad Engineering IPO Dates
Azad Engineering IPO opens on December 20, 2023, and closes on December 22, 2023.
| IPO Open Date | Wednesday, December 20, 2023 |
| IPO Close Date | Friday, December 22, 2023 |
| Basis of Allotment | Tuesday, December 26, 2023 |
| Initiation of Refunds | Wednesday, December 27, 2023 |
| Credit of Shares to Demat | Wednesday, December 27, 2023 |
| Listing Date | Thursday, December 28, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 22, 2023 |
Azad Engineering IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,672 |
| Retail (Max) | 13 | 364 | ₹190,736 |
| S-HNI (Min) | 14 | 392 | ₹205,408 |
| S-HNI (Max) | 68 | 1,904 | ₹997,696 |
| B-HNI (Min) | 69 | 1,932 | ₹1,012,368 |
Azad Engineering IPO GMP
| GMP Date | Azad Engineering IPO GMP | Azad Engineering IPO Listing Price Projection |
|---|---|---|
| 20-12-2023 | ₹440 Todays Movement – GMP No Change | ₹964 (83.97%) |
| 19-12-2023 | ₹440 Todays Movement – GMP No Change | ₹964 (83.97%) |
| 18-12-2023 | ₹440 Todays Movement – GMP Up | ₹964 (83.97%) |
| 17-12-2023 | ₹380 Todays Movement – GMP No Change | ₹904 (72.52%) |
| 16-12-2023 | ₹380 Todays Movement – GMP Down | ₹904 (72.52%) |
| 15-12-2023 | ₹400 Todays Movement – GMP Up | ₹924 (76.34%) |
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Azad Engineering Limited Company Info
Azad Engineering Limited, established in 1983, has distinguished itself as a leading manufacturer in the aerospace and turbine sectors. Specializing in the creation of complex and critical components, the company caters to a diverse range of industries, including aerospace, defense, energy, and oil & gas. The company’s expertise in producing intricate, high-quality products has made it a trusted partner for various original equipment manufacturers (OEMs) globally.
As of September 30, 2023, Azad Engineering has achieved a significant milestone with a revenue of ₹1,142.92 million, primarily driven by its robust blade manufacturing for the energy sector. The company’s international presence spans across key markets such as the USA, China, Europe, the Middle East, and Japan, reflecting its global reach and reputation.
Strategically located in Hyderabad, Telangana, India, Azad Engineering operates four state-of-the-art manufacturing facilities. These plants, encompassing a total production area of approximately 20,000 square meters, are equipped to deliver high-precision forged and machined components.
Moreover, the company is expanding its footprint with the planned addition of two more manufacturing units in Tuniki Bollaram village, Siddipet district, and Mangampet village, Sangareddy district, both in Telangana. These new facilities will significantly increase the production capacity, with areas measuring 94,898.78 and 74,866.84 square meters respectively.
With its headquarters in Hyderabad, Azad Engineering is a significant employer in the region, with a dedicated workforce of 201-500 employees, showcasing its commitment to providing quality jobs and contributing to the local economy.
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Azad Engineering Limited Financial Details
Azad Engineering Limited has exhibited a dynamic financial journey over the last few fiscal years. On a consolidated basis, the company reported a total income of ₹125.03 crore with a net profit of ₹11.50 crore in FY21, which rose to ₹199.26 crore/₹29.46 crore in FY22, before seeing a total income of ₹261.52 crore and a reduced net profit of ₹8.47 crore in FY23.
Certainly! Here’s the key financial data from Azad Engineering Limited presented in a table format:
| Fiscal Year | Total Income (₹ Cr.) | Net Profit (₹ Cr.) | EPS (₹) | RoNW (%) | P/BV (Sep 30, 2023) | P/BV (Post-IPO) | P/E Ratio (Annualized FY24) | PAT Margin (%) | RoCE Margin (%) |
|---|---|---|---|---|---|---|---|---|---|
| FY21 | 125.03 | 11.50 | 3.48 | 12.68 | 11.46 | 4.94 | 57.58 | 9.37 | 12.09 |
| FY22 | 199.26 | 29.46 | – | – | – | – | – | 15.15 | 16.95 |
| FY23 | 261.52 | 8.47 | – | – | – | – | – | 3.37 | 12.99 |
| H1-FY24 | 169.54 | 26.89 | – | – | – | – | – | 16.94 | 9.63 |
The decrease in net profit for FY23 is attributed to one-time adjustments and specific accounting provisions. However, the first half of FY24 shows a promising turnaround, with a net profit of ₹26.89 crore on a total income of ₹169.54 crore. This uptick suggests a positive trend for the company, particularly with its renewed focus on the aviation segment, which is expected to significantly influence its revenue composition in the coming years.
Financially, Azad Engineering has maintained an average Earnings Per Share (EPS) of ₹3.48 and an average Return on Net Worth (RoNW) of 12.68% over the last three fiscals. The company’s issue is priced at a Price/Book Value (P/BV) of 11.46 based on its Net Asset Value (NAV) of ₹45.74 as of September 30, 2023, and at a P/BV of 4.94 based on its post-IPO NAV of ₹106.01 per share (at upper cap).
Considering the annualized FY24 earnings and the post-IPO fully diluted paid-up equity capital of the company, the asking price stands at a Price/Earnings (P/E) ratio of 57.58. Despite being fully priced, the company’s bright future prospects make it an attractive investment opportunity.
Azad Engineering’s Profit After Tax (PAT) margins have shown variability over the reported periods, with 9.37% in FY21, 15.15% in FY22, 3.37% in FY23, and an improved 16.94% in H1-FY24. The Return on Capital Employed (RoCE) margins also reflect a similar trend with 12.09% in FY21, peaking at 16.95% in FY22, and then varying to 12.99% and 9.63% in the subsequent periods.
| Key Performance Indicator | Values |
|---|---|
| P/E (x) | 292.74 |
| Post P/E (x) | 57.58 |
| Market Cap (₹ Cr.) | 3097.52 |
| ROE (%) | 4.2% |
| ROCE (%) | 12.99% |
| Debt/Equity | 1.47 |
| EPS (Rs) | 1.79 |
| RoNW (%) | 4.23% |
Investing in Azad Engineering IPO: A Balanced Analysis
Pros:
- Diverse Portfolio and Global Reach: Azad Engineering boasts a varied product range and serves multiple sectors, including aerospace and defense. With a global footprint and long-standing relationships with major OEMs like GE, Rolls-Royce, HAL, BHEL, and ISRO, the company demonstrates a strong market position.
- Innovation and State-of-the-Art Facilities: A leader in innovation, the company holds 18 patents and has been recognized with 11 engineering awards. Its advanced manufacturing facility is equipped with cutting-edge technology, ensuring top-notch product quality.
- Strategic Position in Growing Industry: Operating in a high-growth industry, Azad Engineering is well-placed to benefit from the rising demand for aerospace and defense components. Initiatives like Make in India and Atmanirbhar Bharat further bolster its growth potential.
- Strong Financial Health: The company’s financial stability is evident from its impressive revenue growth, low debt-to-equity ratio (0.18), and high return on equity (28.6%). Additionally, its positive cash flow and consistent dividend payout (15.8%) highlight its financial prudence.
Cons:
- Competitive Market Risks: Despite its strengths, Azad Engineering faces stiff competition from both domestic and international firms. Dependence on a limited number of major customers also poses a potential risk to revenue stability.
- Regulatory and Compliance Challenges: The company must navigate complex regulatory landscapes, which could increase operational costs. Additionally, it faces risks related to environmental, health, safety, cyberattacks, and data breaches.
- Macroeconomic Sensitivities: The cyclical nature of its business means it’s susceptible to macroeconomic factors like market demand, currency fluctuations, and raw material costs. External factors like natural disasters or geopolitical tensions could also impact operations.
- Valuation Concerns: Compared to industry peers, the company’s valuation appears high, with an IPO price-to-earnings ratio between 38.5 and 40.5, above the industry average of 35.6. A significant grey market premium may also suggest potential overpricing.
Final Thoughts on Azad Engineering IPO Date, Price Band, GMP, Lot Size Review
To conclude, Azad Engineering is a promising company in the aerospace and defense industry, with a diversified product portfolio, a strong R&D capability, a robust financial performance, and a favorable market outlook. However, the company also faces some challenges, such as intense competition, regulatory and compliance risks, cyclical and sensitive business, and high valuation.
Investors who are interested in the Azad Engineering IPO should weigh the pros and cons carefully and make an informed decision based on their risk appetite and return expectations. Thank you for reading this blog post, and feel free to share your thoughts and opinions in the comments section below.
