Shares of Azad Engineering were listed on NSE at Rs 720.00/share with a premium of 37.4%. Whereas on BSE the stock entered at Rs 710.00/share with a premium of 35.5%. Let us tell you that the issue price of IPO was Rs 524/share.
The share received heavy subscription
Azad Engineering’s IPO received an overwhelming response from investors. Till the last day of subscription, it closed with a total of 80.65 times. In this, institutional investors had the maximum subscription of 179.66 times.
Company raised Rs 740 crore
The company raised a total of Rs 740 crore through IPO. In this, Rs 500 crore was raised through Offer for Sale (OFS) and Rs 240 crore was raised by issuing fresh issue.
Where will the money be used?
Vishnu Malpani, Whole Time Director of Azad Engineering Limited, informed in an interview given to NDTV Profit Hindi that the company will use this money in two places. The company will repay its loan through this, which is around Rs 140 crore. Whereas, the remaining money will be used for capital expenditure.
What work does the company do?
The company manufactures critical parts related to engineering. About 80% of the company’s business comes from abroad. This business is mainly related to aerospace, energy and oil and gas sectors, whose critical parts are manufactured by the company. Azad Engineering, started in 2008, currently supplies its components in 15 countries.