The ₹740-crore from Hyderabad-based Azad Engineering will close today for subscription. The issue has so far subscribed over 11 times. The company has fixed the price band as ₹499-524 and investors can bid for a minimum of 28 shares.

The IPO received bids for 3.35 crore shares, against 11.24 crore shares on offer.

Several sports personalities including Sachin Tendulkar, PV Sindhu, VVS Laxman and Saina Nawal had invested in the company.

About the offer

The public issue comprises a fresh issue of ₹400 crore and an Offer-for-Sale (OFS) of up to 71.60 lakh shares worth ₹609 crore.

The quota set aside for retail investors received bids for 11.17 times, while that for of non-institutions 23.54 times. QIBs portion was subscribed 1.53 times. The issue also has a reservation for employees and thier quota was subscribed 6.25 times.

Issue details

The initial public offering comprises a fresh issue of ₹240 crore and an offer-fors-sale of ₹500 crore by promoters and external investors, who included Piramal Structured Credit Opportunities Fund and DMI Finance.

Whie 50 per cent of issue has been reserved for qualified institutional buyers, 15 per cent is for high networth individuals and the balance 35 per cent for retail investors.

Anchor investors

The company raised ₹220.80 crore from anchor investors by allotting 42.13 lakh shares at ₹524 a share. Among the investors included Nippon Life India, Abu Dhabi Investment, ICICI Prudential, Nomura, Ashoka India Equity, Kotak Mahindra Mutual, Tata Infrastructure fund, Bandhan Infrastructure Fund, Edelweiss Mutual, HDFC Life Insurance, Bajaj Allianz, Max Life Insurance and Eastspring Investment India.

The company proposes to utilise the proceeds from the offer to part fund capital expenditure for its ₹280 crore expansion by setting up two units towards the end of the next fiscal and for repaying/pre-paying debt of around ₹90 crore.

Investors to remain stay invested

Even after the IPO, the company will continue to have external investors in the form of HNIs (High Networth Individuals) who include sport stars like Sachin Tendulkar, VVS Laxman, PV Sindhu and Saina Nehwal. Together, these HNIs and the employees will own around 12 per cent in the firm.

About Azad Engineering

Azad Engineering is a niche manufacturer of product lines in aerospace and defence, energy and oil and gas industries. It manufactures highly engineered, complex and mission and life-critical components. Some of its key products include 3D rotating air-foil portions of turbine engines and other critical products for defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power.

In the energy space the company boasts of international clients like Siemens Energy, General Electric, Honeywell International, Mitsubishi, Eaton Aerospace and MAN Energy Solutions.

Merchant bankers to the issue are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors.

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