About the company:
Established in 1983, Azad Engineering Limited is a leading manufacturer specializing in aerospace components and turbines. Over nearly four decades, it has become a key supplier to Original Equipment Manufacturers (OEMs) in aerospace, defense, energy, and oil and gas industries.
Product Excellence:
Azad Engineering is known for its highly engineered products crucial to various applications, particularly in turbines and aerospace components. The company excels in meeting stringent client requirements.
Manufacturing Facilities:
With four facilities in Hyderabad, India, covering 20,000 square meters, Azad Engineering focuses on high-precision forged and machined components. Plans for two additional units in Telangana are underway to expand operations strategically.
IPO Objectives:
- Fund Capital Expenditure: Supporting strategic investments for company growth.
- Repay/Prepay Borrowings: Strengthening financial position by settling certain borrowings.
- General Corporate Purposes: Enhancing overall operational capabilities.
Promoter Holding:
The promoter of the company is Rakesh Chopda.
| Share Holding Pre Issue | 78.61% |
| Share Holding Post Issue | 56.38% |
Summary of Financial Information:
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 636.63 | 589.21 | 404.32 | 256.05 |
| Revenue | 169.54 | 261.52 | 199.26 | 125.03 |
| Profit After Tax | 26.89 | 8.47 | 29.46 | 11.5 |
| Reserves and Surplus | 221.14 | 202.51 | 118.88 | 89.42 |
| Total Borrowing | 324.94 | 300.6 | 197.18 | 87.71 |
Key Performance Indicators:
| KPI | Values |
| P/E (x) | 292.74 |
| Post P/E (x) | 57.58 |
| Market Cap (Rs. Cr.) | 3097.52 |
| ROE | 4.20% |
| ROCE | 12.99% |
| Debt/Equity | 1.47 |
| EPS (Rs) | 1.79 |
| RoNW | 4.23% |
Comparison with peers:
| Company Name | P/E | P/B | RoE (%) |
| Azad Engineering Limited* | 292.74 | 12.38 | 4.15 |
| MTAR Technologies Ltd | 68.9 | 10.8 | 17.9 |
| Paras Defence & Space Technologies Ltd | 81.6 | 6.79 | 9.1 |
| Dynamatic Technologies Ltd | 47.8 | 4.72 | 9.22 |
| Triveni Turbine Ltd | 55.8 | 14.6 | 21.5 |
Key IPO Details:
| IPO Date | December 20, 2023 to December 22, 2023 |
| Listing Date | December 28, 2023 |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 499 to Rs. 524 per share |
| Lot Size | 28 Shares |
| Total Issue Size | 14,122,138 shares (aggregating up to Rs. 740.00 Cr) |
| Fresh Issue | 4,580,153 shares (aggregating up to Rs. 240.00 Cr) |
| Offer for Sale | 9,541,985 shares of Rs. 2 (aggregating up to Rs. 500.00 Cr) |
| GMP | Rs. 440 (83.97%) [Only for education purpose] |
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
