Sachin Tendulkar-backed Azad Engineering shares list at 37% premium over IPO price

Azad Engineering Limited, a manufacturer of aerospace components and turbines, listed on the National Stock Exchange (NSE) today at a whopping premium of 37.4 per cent. The shares commenced trading at Rs 720 on the NSE and Rs 710 on the BSE, significantly surpassing the issue price of Rs 524 apiece.

The strong listing performance follows the company's recent Initial Public Offering (IPO), which garnered significant attention from investors. Cricket legend Sachin Tendulkar invested approximately Rs 5 crore in Azad Engineering in March 2023, adding to the anticipation surrounding the IPO.

Azad Engineering offered its shares in a fixed price band of Rs 499-524 apiece, raising a total of Rs 740 crore through the IPO. The offering included a fresh share sale of Rs 240 crore and an offer-for-sale (OFS) of up to 95,41,985 equity shares. The stellar debut on the bourses aligns with the positive momentum witnessed in the grey market, where the company commanded a premium of Rs 200-210 per share.

The company's IPO saw robust demand, with an overall subscription of 80.65 times. Qualified institutional bidders (QIBs) led the way with a staggering 179.66 times subscription, while non-institutional investors' category was subscribed 87.61 times. Retail investors and employees also showed keen interest, subscribing 23.79 times and 14.71 times, respectively.

Azad Engineering, incorporated in 1983, specialises in manufacturing aerospace components and turbines, supplying products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries. The company boasts highly engineered, complex, and mission-critical products.

Despite financial volatility, including a 71.2 per cent year-on-year decline in net profit for the quarter ending March FY23, Azad Engineering demonstrated resilience with a 29.4 per cent growth in revenue from operations. The IPO proceeds will be utilised for capital expenditure, repayment/prepayment of certain borrowings, and general corporate purposes.

The successful listing affirms investor confidence in Azad Engineering and showcases the potential for growth in the aerospace and turbine manufacturing sector. With Sachin Tendulkar's backing and a strong market debut, Azad Engineering has set the stage for a promising journey on Dalal Street.