Azad Engineering Limited IPO Detail And Grey Market Premium

Azad Engineering Limited IPO Detail 

Azad Engineering IPO is book built issue of Rs 740.00 crores. The issue is a combination of fresh issue of 0.46 crore shares totals of  Rs 240.00 crores and offer for sale of 0.95 crore shares aggregating to Rs 500.00 crores.

Azad Engineering IPO opens for subscription on December 20, 2023 and closes on December 22, 2023. The allotment for the Azad Engineering IPO is expected to be finalized on Tuesday, December 26, 2023. Azad Engineering IPO will list on BSE, NSE with tentative listing date fixed as Thursday, December 28, 2023.

Azad Engineering IPO price band is set at ₹499 to ₹524 per share. The minimum lot size for an application is 28 Shares. The minimum amount of investment required by retail investors is ₹14,672. The minimum lot size investment for sNII is 14 lots (392 shares), amounting to ₹205,408, and for NII, it is 69 lots (1,932 shares), amounting to ₹1,012,368.

Azad Engineering Limited IPO Detail And Grey Market Premium

About Azad Engineering Limited

Incorporated in 1983, Azad Engineering Limited is a manufacturer of aerospace components and turbines. The company supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries.

Azad Engineering's products are highly engineered, complex, mission-critical, and vital.

The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Azad Engineering Ltd, we already have GMP data for the last 4 days, which should give a reasonable picture of the likely listing price of the IPO.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

Azad Engineering is headquartered in Hyderabad, Telangana, India, and employs 201-500 people.

Azad Engineering IPO Details

IPO DateDecember 20, 2023 to December 22, 2023
Listing Date[.]
Face Value₹2 per share
Price Band₹499 to ₹524 per share
Lot Size28 Shares
Total Issue Size14,122,138 shares
(aggregating up to ₹740.00 Cr)
Fresh Issue4,580,153 shares
(aggregating up to ₹240.00 Cr)
Offer for Sale9,541,985 shares of ₹2
(aggregating up to ₹500.00 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue54,532,842
Share holding post issue59,112,995

Azad Engineering IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50% of the Net Issue
Retail Shares OfferedNot less than 35% of the Net Issue
NII (HNI) Shares OfferedNot less than 15% of the Net Issue

Azad Engineering IPO Timeline (Tentative Schedule)

Azad Engineering IPO opens on December 20, 2023, and closes on December 22, 2023.

IPO Open DateWednesday, December 20, 2023
IPO Close DateFriday, December 22, 2023
Basis of AllotmentTuesday, December 26, 2023
Initiation of RefundsWednesday, December 27, 2023
Credit of Shares to DematWednesday, December 27, 2023
Listing DateThursday, December 28, 2023
Cut-off time for UPI mandate confirmation5 PM on December 22, 2023

Azad Engineering IPO Lot Size

Investors can bid for a minimum of 28 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Retail (Min)128₹14,672
Retail (Max)13364₹190,736
S-HNI (Min)14392₹205,408
S-HNI (Max)681,904₹997,696
B-HNI (Min)691,932₹1,012,368

Azad Engineering IPO Promoter Holding

The promoter of the company is Rakesh Chopda.

Share Holding Pre Issue78.61%
Share Holding Post Issue56.38%

Azad Engineering IPO Review (Apply)

The company is a niche player in its segment and enjoys virtual monopoly. It posted steady growth in its top line for the reported periods. Drastic fall in bottom line for FY23 is attributed to one-time adjustments as per new accounting norms. Based on FY24 annualized earnings, the issue appears fully priced. Considering bright prospects, it’s a worthy bet. Investors may park funds for the medium to long-term rewards. 

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