Azad Engineering IPO opens today: GMP, subscription status, dates, review, other key details. Apply or not?
Azad Engineering IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. Employees portion have been reserved equity shares aggregating up to ₹4 crores.
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Azad Engineering IPO details
Azad Engineering IPO comprises a fresh issue of shares of up to ₹240 crore and an offer for sale (OFS) of up to ₹500 crore by a promoter and others selling shareholders, as per red herring prospectus (RHP). Azad Engineering IPO issue size is ₹740 crore.
Azad Engineering Limited is a producer of turbines and parts for aircraft. The business provides its goods to original equipment manufacturers (OEMs) in the oil and gas, aerospace, defence, and energy sectors.
The products of Azad Engineering are vital, mission-critical, intricately designed, and highly engineered.
As per the red herring prospectus (RHP), Azad Engineering IPO’s listed industry peers are MTAR Technologies Limited (with a P/E of 67.85), Paras Defence and Space Technologies Limited (with a P/E of 77.50), Dynamatic Technologies Limited (with a P/E of 88.73), and Triveni Turbine Limited (with a P/E of 75.64).
Also Read: Azad Engineering IPO: Price band fixed at ₹499-524 apiece; GMP, issue details, more
Azad Engineering IPO dates
Tentatively, Azad Engineering IPO basis of allotment of shares will be finalised on Tuesday, December 26, and the company will initiate refunds on Wednesday, December 27, while the shares will be credited to the demat account of allottees on the same day following refund. Azad Engineering share price is likely to be listed on BSE and NSE on Thursday, December 28. Given that T+3 listing is mandatory as of December 1, 2023, Azad Engineering IPO will list on primary markets this month under this norm.
Also Read: Azad Engineering raises ₹221 crore from anchor investors ahead of IPO
Azad Engineering IPO GMP today
Azad Engineering IPO GMP today or Azad Engineering IPO grey market premium is +440. This indicates Azad Engineering share price were trading at a premium of ₹440 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Azad Engineering share price is ₹964 apiece, which is 83.97% higher than the IPO price of ₹524.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Azad Engineering IPO review
“Azad Engineering’s high entry barrier comes from OEMs’ demanding qualification procedures. It’s a business that requires more than just money to succeed. The company has a solid track record, a strong business plan, and management experience that has produced positive results in the past. The revenue of the company grew at a CAGR of 43% between FY2021 and FY2023 and PAT margin grew at a CAGR of 49% between FY2021 and FY2023. While, valuation of the company stands at 292.7x P/E which appears fully priced as compared to peers. We recommend to subscribe for listing gains,” the brokerage said.
Nirmal Bang
Based on the brokerage’s report, after putting in a lot of effort over the past 15 years to develop and register (gaining qualification for 1400 components), Azad is now ready to boost revenue. It is clear from the company’s gross and EBITDA margins that there is little competition in this industry due to high entry barriers in terms of gestation period and manufacturing capabilities.
“Upon comparing with other similar Cap Goods players, we observe that Azad has delivered superior growth with similar return ratios while its valuation is broadly at par with the peer group. Based on stronger track record and superior outlook on growth, we expect Azad to trade at a premium to peers and thus we recommend to Subscribe to the IPO,” said the brokerage
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Dec 2023, 08:55 AM IST
