azad engineering: Azad Engineering files Rs 740-cr IPO papers with Sebi

Azad Engineering Ltd has filed draft papers with capital markets regulator Sebi to raise Rs 740 crore through an initial public offering (IPO). The company’s IPO comprises a fresh issue of up to Rs 240 crore and an offer-for-sale (OFS) of equity shares aggregating up to Rs 500 crore by a promoter and investors, according to the draft red herring prospectus (DRHP).

The OFS consists of the sale of equity shares aggregating up to Rs 170 crore by promoter Rakesh Chopdar, equity shares worth up to Rs 280 crore by Piramal Structured Credit Opportunities Fund and equity shares to the tune of up to Rs 50 crore by DMI Finance.

Proceeds from the fresh issues will be used for funding capital expenditure of the company, payment of debt, and general corporate purposes, as per the draft papers filed on Friday.

Azad Engineering is one of the key manufacturers of their qualified product lines supplying global original equipment manufacturers (OEMs) in the aerospace and defence, energy, and oil and gas industries, manufacturing highly engineered, complex, and mission and life-critical components.

The company manufactures complex and highly engineered precision forged and machined components that are mission and life-critical.

Azad Engineering customers include General Electric, Honeywell International Inc, Mitsubishi Heavy Industries, Ltd, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.

The company’s revenues increased from Rs 124 crore in financial year 2020 to Rs 2,517 crore in financial year 2023, with a compound annual growth rate of (CAGR) 27 per cent.

Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors are the book-running lead managers to the issue.

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