Sachin Tendulkar-backed Azad Engineering raises Rs 221 crore ahead of IPO

Promoters and outside investors contributed ₹500 crore to the Azad Engineering IPO’s offer for sale (OFS).

On the night before its ‘740-crore initial public offering (IPO) opened, cricketing star Sachin Tendulkar backed Azad Engineering, which makes intricate and highly designed precision forged and machined parts, and the company secured roughly ‘221 crore from 20 anchor investors.

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With an anchor investor allocation price of ‘524 a share, 42,13,731 shares for ‘220.8 crore have been allotted. This price band, which is defined for the IPO that opens on Wednesday (December 20) and concludes on December 22, represents the higher end of the range. The distribution was made at a premium of 522 dollars for each share, based on its face value. As a result, around 30% of the Hyderabad-based firm’s initial public offering (IPO) has been subscribed. Each of the three anchor investors—Ashoka India Equity Investment Trust LLC, Nomura Funds Ireland Public Ltd Company—Nomura Funds Ireland—India Equity Fund, and the Abu Dhabi Investment Authority—Monsoon—has been allotted 4,67,572 shares, or slightly more than 11% of the total.

Here is the list:

In addition to these significant anchor investors, the following funds received allocations of shares: ICICI Prudential Flexicap Fund (6.71%), Kotak Infrastructure & Economic Reform Fund (8.03%), Kotak Business Cycle Fund (5.55%), and Nippon Life India Trustee Ltd-Nippon India Small Cap Fund (8.03%).

The Azad Engineering IPO follows Good Manufacturing Practices

On the black market, Azad Engineering’s stock was selling for ₹440 more than it was worth. Before a company is formally listed on the stock market, investors can buy and sell shares on an unofficial exchange called a grey market. The Azad Engineering IPO is expected to list for ₹964, which is significantly more than the initial public offering price of ₹524.

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Among the many investors in the Hyderabad-based company are cricketer VVS Laxman, badminton champion PV Sindhu, and badminton superstar Saina Nehwal. The company makes mission and life-critical components for worldwide original equipment manufacturers in areas such as aerospace and defense, energy, and oil and gas. As part of the initial public offering (IPO), the promoters and current investors have put up 500 crore rupees’ worth of shares for sale, and 240 crore rupees’ worth of shares have been issued fresh.

Piramal Structured Credit Opportunities Fund is seeking to sell shares totaling approximately 261 crore rupees, while DMI Finance Private Ltd is seeking to sell shares totaling approximately 34 crore rupees, and promoter Rakesh Chopdar is offering shares totaling almost 205 crore rupees. Capital expenditures, repayment or prepayment of certain borrowings, and general corporate purposes will all be funded by the net proceeds from the offer.

There is a fixed quota of 50% for eligible institutional buyers, 35% for retail investors, and 15% for non-institutional investors. A listing of the company’s shares on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) is being considered.