Azad Engineering IPO: Key Details, Dates, Objectives, and Risks
Azad Engineering, a prominent player in the aerospace industry, is set to embark on a new journey with its Initial Public Offering (IPO). This blog provides a comprehensive overview of the Azad Engineering IPO, covering key details, dates, the company's objectives, and potential risks investors should be aware of.
Key Details of Azad Engineering IPO
| IPO Dates | Dec 20, 2023 - Dec 22, 2023 |
| Price Band | ₹499 to ₹524 per share |
| Lot Size | 17 |
| Total Issue Size | Up to ₹740.00 Cr |
| Fresh Issue | Up to ₹240.00 Cr |
| Offer for Sale | Up to ₹500.00 Cr |
| Issue Type | Book Built IPO |
| Listing at | BSE, NSE |
What Does Azad Engineering Do?
Established in 1983, Azad Engineering stands as one of the leading manufacturers of aerospace components and turbines in India, symbolized by the silhouette of a plane. The company has earned a stellar reputation for supplying high-quality products to original equipment manufacturers in key global markets, including China, USA, and Japan. Azad Engineering predominantly generates its revenue from supplying energy components to clients worldwide.
Company Financials
(Figures in Rs. Crores)
| Particulars | FY21 | FY22 | FY23 |
| Revenue | 1,227.21 | 1,944.67 | 2,516.75 |
| Gross Profit | 1,089.12 | 1,737.05 | 2,215.24 |
About the Business: 80% of the revenue is from foreign markets
Markets
| Markets | FY 23 | FY 22 |
| Outside India (Rs. Million) | 2,023.08 (80.38%) | 1,518.17 |
| Inside India (Rs. Million) | 493.67 (19.62%) | 426.5 |
| Portion of total revenue (%) | 80.38% | 78.07% |
Objectives of the IPO
The Azad Engineering IPO aims to achieve several strategic objectives, including but not limited to:
- Fund Expansion: Utilize the funds raised to expand manufacturing capabilities and infrastructure.
- Debt Repayment: Repay existing debts to strengthen the company's financial position.
- Research & Development: Invest in research and development for innovation and staying competitive in the aerospace industry.
- Market Presence: Enhance market presence and increase the reach of Azad Engineering's products in both domestic and international markets.
Risks to Consider
While Azad Engineering exhibits impressive growth, investors should be mindful of potential risks, including:
- Market Fluctuations: Aerospace industry dynamics are subject to market fluctuations and economic uncertainties.
- Global Dependencies: The company's heavy reliance on international markets poses risks associated with geopolitical factors and global economic conditions.
- Regulatory Changes: Changes in regulations, especially in the aerospace sector, can impact operations and profitability.
Conclusion
Azad Engineering's IPO presents a lucrative opportunity for investors to become part of a dynamic player in the aerospace industry. As with any investment, it is crucial for potential investors to conduct thorough research, assess the risks, and make informed decisions. Stay tuned for updates as Azad Engineering takes flight into the next phase of its growth journey.