Azad Engineering Mops Up Rs 220.8 Crore From Anchor Investors Ahead Of IPO

Azad Engineering Ltd. has raised Rs 220.8 crore from anchor investors, ahead of its initial public offering.

The company allotted 42.13 lakh shares at Rs 524 apiece to 20 anchor investors.

Abu Dhabi Investment Authority, Nomura Funds Ireland-India Equity Fund and Ashoka India Equity Investment Trust secured 11.1% each of the allocation—the highest portions in the list.

Six domestic mutual funds have applied through a total of 10 schemes, the company said in an exchange filing. They have collectively netted 45.33% of the anchor portion of Rs 100 crore.

ICICI Prudential Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, Bandhan Infrastructure Fund and Nippon Life India AMC are among the key investors.

About Azad Engineering IPO

Azad Engineering's IPO will be open for bids from Dec. 20 to 22, with an aim to raise Rs 740 crore.

The Hyderabad-based firm's public float comprises fresh issue of up to Rs 240 crore and an offer-for-sale of equity shares aggregating up to Rs 500 crore by a promoter and investors.

Proceeds from the fresh issue will be used for funding capital expenditure of the company, payment of debt, and general corporate purposes.

Azad Engineering supplies products to global original equipment manufacturers in the aerospace and defence, energy, and oil and gas industries. Its customers include General Electric, Honeywell International Inc, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.