Azaad Engineering Launch IPO Today | Launch IPO Today

Azaad Engineering Launch IPO Today

Azaad Engineering IPO comprises a Rs 500 crore offer for sale (OFS) component by promoters and external investors.

The initial public offering (IPO) of Hyderabad-based Azaad Engineering opened for subscription on Wednesday. The issue of Rs 740 crore will remain for subscription till Friday, December 22.

The company has declared the price band of IPO at Rs 499-524. The issue comprises an offer for sale (OFS) component of Rs 500 crore by promoters and external investors. "The remaining Rs 240 crore will be raised from the fresh issue of shares," the company's chairman and managing director Rakesh Chopdar told PTI.

  He said the existing external investor in the company is Piramal Structured Credit Opportunities Fund which will sell shares for Rs 261 crore. It had invested Rs 160 crore in August 2022.

The company plans to use the proceeds from the offer to partly fund its capital expenditure of Rs 280 crore by setting up two units at the end of the next financial year and to repay/prepay debt of about ₹90 crore. Have proposed.

 The company derives more than 80 percent of its revenue from exports to more than 15 global markets.

Shares of Azaad Engineering were trading at a premium of Rs 440 in the gray market. The gray market is an informal stock and market where investors trade shares before they are officially listed on the stock market.

The estimated listing price of Azaad Engineering IPO is Rs 964, which is much higher than the IPO price of Rs 524.

Source- Hindustan Times