₹ 14672 / 28 shares
IPO Details
RHP/DRHPIssue Date
20 Dec - 22 Dec'23
Investment/lot
₹ 14672
Price Range
499 - 524
Lot Size
28
IPO Size
₹ 740.00 Cr
IPO Listing Details
Listing On
28 Dec'23
Issue Price
524
Listed Price
₹ 720
Retail Gain/Listing Gain
▲37.40%
IPO Timeline
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:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•00m 59 s
How to apply for an IPO using UPI
Kotak Securities
•01m 19 s
How to apply for an IPO using UPI
Azad Engineering Ltd IPO FAQs
When is Azad Engineering Ltd IPO listing date?
Azad Engineering Ltd will list on 2023-12-28.
What is the issue size of Azad Engineering Ltd IPO?
740.00 is the issue size of Azad Engineering Ltd IPO.
What is the minimum lot size required for Azad Engineering Ltd IPO?
The minimum lot size is 28 shares and the investment required is ₹14672.
What is the price band of the Azad Engineering Ltd IPO?
The price band of Azad Engineering Ltd IPO is ₹499 to ₹524.
Where can I read more about Azad Engineering Ltd business?
You can read more about Azad Engineering Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Azad Engineering Limited IPO?
The Azad Engineering Limited IPO has an issue size of Rs. 740 crores. The IPO opens for subscription on 20th December 2023 and closes on 22nd December 2023.
Who is the Registrar for Azad Engineering Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
Where can I read more about Azad Engineering Limited’s business?
You may read more about Azad Engineering Limited and its IPO from the company’s red herring prospectus (RHP) here:
