Azad Engineering Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹524
Per ShareLot Size
28 Shares
Minimum Investment
₹14,672
Issue Size
₹740 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Azad Engineering Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
77.46%
Promoter Holding (Post-Issue)
64.81%
Issue Type
Book Building
ISIN
INE02IJ01035
About the Company
Azad Engineering Limited is one of the key manufacturers of its qualified product lines supplying to global original equipment manufacturers ("OEMs") in the energy, aerospace and defence, and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components. 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. As of September 30, 2023, the company generated a revenue of Rs.1,142.92 million from sale of airfoils/ blades for the energy industry, which comprised of 72.00% of its revenue from operations. Its customers include global OEMs across the energy, aerospace and defence and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.
Industry Overview
The Company's diversified product ranges across energy, aerospace and defence, and oil and gas industries. The Company is one of the key manufacturers of its qualified product lines supplying to global OEMs primarily engaged in highly regulated industries, including energy, aerospace and defence, and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components.
Company History
Azad Engineering Limited was originally incorporated as `Azad Engineering Private Limited' at Hyderabad, Telangana, as a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation dated September 14, 1983, issued by Registrar of Company, Telangana at Hyderabad ("RoC"). Subsequently, the name of the Company was changed to `Azad Engineering Limited' pursuant to the conversion of the Company from a private limited company to a public limited company and a fresh certificate of incorporation dated September 5, 2023, was issued by the RoC.
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.
Growth Strategy
- 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.
Customer Base
Global OEMs across the energy, aerospace and defence, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
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 Rs. 500.00 crores* (the "Offer for Sale"), comprising of 3,911,545* equity shares aggregating up to Rs. 204.97 crores* by Rakesh Chopdar, 4,978,062* equity shares aggregating up to Rs. 260.85 crores* by Piramal Structured Credit Opportunities Fund and 652,350* equity shares aggregating up to Rs. 34.18 crores* by DMI Finance Private Limited (collectively the "Selling Shareholders") (such equity shares offered by the selling shareholders, the "Offered Shares"). The offer includes a reservation of up to 76,335* equity shares, aggregating up to Rs. 4.00 crores (constituting 0.13% of the post offer paid-up equity share capital of the company) for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitute 23.89% and 23.76%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is Rs. 2 each. The offer price is 262 times the face value of the equity shares. *Subject to finalisation of basis of allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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.
- 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.