Azad Engineering IPO Details
Issue Date
20 Dec - 22 Dec'23
Price Range
₹499 - ₹524
Lot Size
28
IPO Size
₹740.00 Cr
Azad Engineering IPO Listing Details
Listing On
28 Dec'23
Issue Price
₹524
Listed Price
₹ 720
Retail Gain/Listing Gain
▲37.40%
Schedule of Azad Engineering IPO
Start date
20/12/2023
End date
22/12/2023
Allotment of bids
Refund Initiation
Listing on exchange
28/12/2023
Company Background
Azad Engineering Limited is one of the key manufacturers of their products, 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 (Source: EY Report).
The company manufactures complex and highly engineered precision forged and machined components that are mission and life-critical and hence, some of their products have a “zero parts per million” defects requirement (Source: EY Report).
Let's take a look at the competitive strengths and risk factors for Azad Engineering Limited:
Supplying to OEMs with high global market penetration
Based on the company’s deep market knowledge and continuing interactions with long-standing customers, the company serves as a critical source supplier for global OEMs. In FY23, they supplied to customers that control approximately 70% of the gas turbine market (based on technology ownership and number of units ordered in the first half of Fiscal 2022) globally (Source: EY Report) and continue to supply to customers in this industry.
Long-standing and deep customer relationships
The company has existing relationships with both Indian and global OEMs. Their long-standing customer base comprises leading product OEM companies, and key strategic and globally preferred partners such as General Electric and Mitsubishi Heavy Industries, Ltd., with whom they have an average relationship of over 10 years. The company has also been honoured with numerous awards and accolades from their customers.
Consistent track record of financial performance
The company has demonstrated consistent growth in terms of revenues and profitability. Their total revenue from operations increased by 105.08% from Rs. 1,227.21 million in Fiscal 2021 to Rs. 2,516.75 million in Fiscal 2023 and was Rs. 1,587.47 million in the six months ended September 30, 2023.
Risk Factors
- The business is dependent on the sale of products to key customers.
- The business is highly dependent on its Hyderabad, Telangana facilities for the entire portion of their revenue from operations.
- 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 the business.
Key Strategies
- Leverage their industry-leading capabilities by continuing to diversify the customer base and increase penetration and wallet share with existing customers by entering into new component lines.
- Augment manufacturing capabilities.
- Reduce operating costs further, improve operating efficiencies and deploy new technologies.
Key Financials
Here are the key financials for Azad Engineering Limited:
How to apply for IPO through ASBA
Kotak Securities
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