Azad Engineering Shares Close 6.49% Lower On First Day Of Listing
The Rs 740-crore initial public offering was subscribed 80.65 times.
Azad Engineering Ltd. listed on the National Stock Exchange on Thursday at Rs 720 apiece, a premium of 37.40% over its IPO price of Rs 524 apiece.
On the BSE, the stock debuted at Rs 710, a 35.50% premium.
The stocks closed on the BSE at Rs 677.10, down 5.13% from the opening price, but it was 28.55% above the IPO price. On the NSE, the stock closed 6.49% lower.
The Rs 740-crore initial public offering was subscribed 80.65 times on its third and final day. The bids were led by institutional investors (179.66 times), followed by non-institutional investors (87.61 times), retail investors (23.79 times) and employees (14.71 times).
Azad Engineering will use the funds for capital expenditure, prepayment, repayment in full or part, of borrowings which the company has availed.
Business
Azad Engineering manufactures highly engineered, complex and life-critical components, which the company supplies to global original equipment manufacturers in the energy, aerospace, defence and oil & gas sectors.
The engineering company posted a revenue of Rs 114.3 crore as of September from sale of airfoils, blades for the energy industry. Its revenue rose to Rs 251.7 crore in the last financial year compared to Rs 124 crore in fiscal 2020, with a compound annual growth rate of 27%. It posted an Ebitda margin of 31.36% in 2022–23.
