Azad engineering share price nse: 37% Premium at 720, Buy/Sell or Hold?

Azad engineering share price nse: Azad Engineering Ltd had a strong start at Dalal Street, with its aerospace components and turbines being listed at Rs 720 on the National Stock Exchange, representing a 37.40% premium over the issue price of Rs 524 per share. The stock also debuted at a 35.50% premium at Rs 710 on the BSE.

Azad Engineering’s listing closely matched expectations, as the company held a premium of Rs 200-210 per share in the grey market before its listing, indicating a potential listing increase of about 40 percent for investors. Nevertheless, the premium in the unofficial market stood at around Rs 440 before the bidding process began.

Azad engineering share price nse 2024

Azad Engineering, supported by Sachin Tendulkar, launched its IPO at a fixed price of Rs 499-524 per share, with a lot size of 28 equity shares, from December 20 to December 22. The IPO raised Rs 740 crore, including a fresh share sale of Rs 240 crore and an offer-for-sale of up to 95,41,985 equity shares.

The IPO received a lot of interest, with an overall subscription rate of an impressive 80.65 times. Qualified institutional bidders played a significant role, oversubscribing their portion by a remarkable 179.66 times. Non-institutional investors’ participation was strong, with a subscription rate of 87.61 times. Retail investors and employees also expressed interest, subscribing 23.79 times and 14.71 times, respectively.

Azad engineering share price nse Details

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Azad engineering share: Company Profile

Azad Engineering, founded in 1983, focuses on producing aerospace components and turbines for original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries. The company’s products are intricately engineered, complex, crucial, and indispensable. Sachin Ramesh Tendulkar, the renowned cricketer, invested approximately Rs 5 crore in a company in March 2023. He purchased 14,607 equity shares at a price of Rs 3,423 each, which later converted into 3,65,175 equity shares post stock split and bonus issue. As per the RHP (Red Herring Prospectus) of the company, the average price of Sachin’s holding was Rs 136.92 per share.

This investment is a testament to Sachin’s business acumen and his confidence in the future prospects of the company. It also highlights his interest in diversifying his portfolio beyond sports-related ventures. The initial public offering (IPO) for Azad Engineering has four book running lead managers, including Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Securities. The registrar for the issue is Kfin Technologies. These companies play a crucial role in the IPO process, with the book running lead managers responsible for underwriting the issue and ensuring that it is successfully launched.

The registrar manages the allocation of shares to investors and maintains records of shareholdings. A successful IPO can provide a significant boost to a company’s finances and reputation, making it an attractive option for businesses looking to raise capital.

Azad engineering share: Financials

The company announced a 31% increase in operational revenue to ₹261 crore compared to the previous year, however, its net profit for the financial year 2023 dropped by 71% to ₹8.4 crore. During the period from FY21 to FY23, the company maintained a significant CAGR of 43% in revenue growth and a corresponding CAGR of 49% in PAT margin. Azad is a leading manufacturer of high-quality product lines for global original equipment manufacturers (OEMs) in the energy, aerospace and defense, and oil and gas sectors.

The company specializes in producing precision-forged and machined components, including highly engineered, complex, and critical parts that must have zero defects per million. Azad competes globally with manufacturers from China, Europe, the USA, and Japan. Its customer base consists of well-known global OEMs like General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.

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Net-profit margin

Azad Engineering share price target

Analysts expect Azad Engineering’s stock price to be volatile in the coming year, with a projected high of Rs 955 in December 2024 and a low of Rs 696 in March 2024.

Analysts generally anticipate Azad Engineering‘s average price target for 2024 to be approximately Rs 820. Azad Engineering’s projected share price for 2024 is based on an assessment of the company’s financials, past patterns, and input from different brokerage firms.

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