Azad Engineering IPO

Azad Engineering Limited

₹13,972 /28 sharesMinimum Investment

Azad Engineering IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹524.00₹720.00₹196.00 (37.40%)

Azad Engineering IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
20 Dec ‘23 - 22 Dec ‘23₹13,97228₹499 - ₹524
Issue SizeIPO Doc
740.00Cr
RHP PDF

Subscription Status As on 22 Dec '23, 5:00 PM

  • Qualified Institutional Buyers
    179.66x
  • Non-Institutional Investor
    87.53x
  • Retail Individual Investor
    23.65x
  • Employees
    14.54x
  • Total
    80.56x

About Azad Engineering

Established on September 14, 1983, Azad Engineering Limited specializes in producing highly engineered, intricate, and mission-critical components for original equipment manufacturers (OEMs) in the energy, aerospace, defense, and oil and gas industries. The company's clientele comprises renowned global OEMs such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE. Since its inception, Azad Engineering Limited has supplied components to countries like the USA, China, Europe, the Middle East, and Japan. Azad Engineering Limited's product range encompasses 3D rotating airfoil/blade sections for turbine engines and other critical components for gas, nuclear, and thermal turbines used in industrial applications, energy generation, defense, civil aircraft, and spacecraft. In the energy sector, the company manufactures high-precision rotating and stationary 3D airfoils/blades, special machined parts, and combustion component assemblies for land-based turbines. Azad Engineering Limited also produces airfoils/blades and components for engines, auxiliary power units (APUs), hydraulics, actuating systems, flight controls, fuel and inerting sections of commercial and defense aircraft, and spacecraft. The company's portfolio also extends to various critical components for missiles and other defense systems.;
Parent Organisation
Azad Engineering Limited
Founded
1983
Managing Director
Mr. Rakesh Chopdar

Strengths & Risks

  • Azad Engineering Limited is a manufacturing company, specializing in delivering top-tier product lines to global Original Equipment Manufacturers (OEMs). The company focuses on regulated sectors such as energy, aerospace, defense, and oil and gas, producing intricate and mission-critical components.
  • With a profound understanding of the market and ongoing engagements with longstanding clients across various industries, Azad Engineering Limited is recognized as a vital source supplier for global OEMs. In 2023, the company supplied to customers, commanding around 70% of the global gas turbine market, as measured by technology ownership and the number of units ordered in the first half of 2022. This trend continues with ongoing supply to customers in this industry.
  • As of September 30, 2023, Azad Engineering Limited operates four manufacturing facilities in Hyderabad, Telangana, covering an expansive area of approximately 20,000 square meters. These facilities boast a collective annual installed capacity of 642,310 hours per annum, with actual production of 578,316 hours per annum and an impressive capacity utilization rate of 90% per annum.
  • The company takes pride in its diverse customer base, strategically spread across different geographical locations. Azad Engineering Limited caters to a global clientele, with a significant presence in the USA, Europe, Japan, the Middle East, the United Kingdom, and China.
  • In terms of financial performance, as of September 30, 2023, the company achieved a revenue of Rs. 114.292 crore from the sale of airfoils/blades for the energy industry. This segment contributed significantly, accounting for 72.00% of the total revenue from operations.
  • Azad Engineering Limited relies heavily on its facilities in Hyderabad, Telangana, for most of its operational revenue. Any disturbance, breakdown, or closure of the Hyderabad facility could negatively impact the company's business, financial condition, and future prospects.
  • The company relies on third-party suppliers for raw materials, plants, machinery, and components, all acquired through purchase orders. Any failure or delay on the part of these suppliers to fulfill their obligations on time may lead to disruptions, shortages, or price volatility, significantly affecting Azad Engineering Limited's business, financial condition, and future prospects.
  • As of September 30, 2023, the company's outstanding borrowings, excluding PSCOF CCDs, totalled Rs. 154.228 crore, including a bank guarantee of Rs. 0.592 crore. The ability to meet interest payments and repay principal amounts is contingent on effective management of business operations and generating sufficient cash flows.
  • Previous periods have seen negative cash flows, a trend that may continue in the future.
  • The expansion plans involving new manufacturing facilities are susceptible to unforeseen delays and cost overruns. While some purchase orders for capital expenditure have been placed, delays in order placement or equipment supply may lead to time and cost overruns, negatively impacting business, prospects, and operational results.
  • Previously, unspent CSR amounts in 2021 were utilized in 2023. The company cannot guarantee timely utilization of future CSR amounts, potentially resulting in penalties. Unspent CSR amounts of Rs. 0.305 crore in Fiscal 2021 were attributed to the challenge of identifying relevant projects.
  • The adequacy of insurance coverage to shield against all potential losses or meet potential claims is uncertain and could adversely affect business, financial condition, and future prospects.
  • The company relies on third parties for product transportation and delivery, and contingent liabilities may impact profitability and results of operations.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular499 - 524₹2 Lakh
High Networth Individual499 - 524₹2 - 5 Lakh
For Azad Engineering IPO, eligible investors can apply as Regular.
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