Azad Engineering IPO: The allotment of the initial public offering of Azad Engineering Ltd (AEL) will be finalised on Tuesday, December 26. The Rs 740-crore IPO, which was open for public subscription between December 20 and December 22, received 83.04 times subscription, garnering bids for 81,64,09,468 shares as against 98,32,042 shares on offer.
The category meant for non-institutional investors received 90.24 times subscription, while the quota for retail individual investors (RIIs) got subscribed 24.51 times. The quota for qualified institutional buyers (QIBs) got subscribed 179.64 times.
The IPO listing will take place on December 28 on both BSE and NSE.
Azad Engineering IPO: How To Check Allotment Status
The IPO allotment status can be checked by following these steps:
1) Go to the official BSE website via the URL —https://www.bseindia.com/investors/appli_check.aspx.
2) Under ‘Issue Type’, select ‘Equity’.
3) Under ‘Issue Name’, select ‘Azad Engineering Limited’ in the dropbox.
4) Enter your application number, or the Permanent Account Number (PAN).
5) Then, click on the ‘I am not a robot’ to verify yourself and hit ‘Search’ option.
Your share application status will appear on your screen.
You can also visit direct KFin Tech portal — https://rti.kfintech.com/ipostatus/ and check Azad Engineering IPO allotment status.
Azad Engineering IPO GMP Today
According to market observers, unlisted shares of Azad Engineering are currently trading Rs 345 higher in the grey market as compared with its issue price. The Rs 345 grey market premium or GMP means the grey market is expecting a 65.84 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Azad Engineering IPO Details
The price band of the Azad Engineering IPO was fixed at Rs 499-524 per share. The minimum lot size for an application was 28 shares. The minimum amount of investment required by retail investors was Rs 14,672.
Ahead of the IPO, Azad Engineering Ltd collected Rs 221 crore from anchor investors.
At the upper end of the price band, the 15-year old company aimed to mop up Rs 740 crore from the market which values it at close to Rs 3,000 crore.
The Initial Public Offering (IPO) comprised Rs 500 crore of Offer For Sale (OFS) component by promoters and external investors, who are completely exiting the company.
DMI Finance, which was first to acquire stake in the firm in July 2021, will sell its 1.2 per cent shareholding for around Rs 34 crore.
The company proposes to utilise the proceeds from the offer to part fund capital expenditure for its Rs 280 crore expansion by setting up two units towards the end of the next fiscal and for repaying/pre-paying debt of around Rs 90 crore.
The company nets over 80 per cent of its revenue from exports to 15 global markets.
In FY21, its topline stood at Rs 122.7 crore from which it had earned Rs 37 crore of net income.
The revenue rose to Rs 194 crore and net income to Rs 42 crore in FY22.
In the last fiscal, the company’s revenue increased to Rs 251 crore and net income was at Rs 79 crore.
In the first six months of the current fiscal, its top line reached Rs 158 crore and the bottom line stood at Rs 29 crore, the company’s Whole Time Director Vishnu Malhani said.
In the energy space the company boasts of international clients like Siemens, GE, Honeywell, Mitsubishi, Eaton and Mann.
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