Azad Eng strong debut

Azad Engineering made a strong debut today; as against the IPO price of Rs.524, it got listed on the BSE at Rs.710 and rose to Rs.727.50; it now trading at Rs.707 levels.

The IPO had got a very good response, subscribing 83.04 times, with QIBs leading the pack at 179.64 times, HNIs at 90.21 times and Retail at 24.51 times.

This 15-year old company manufactures high precision, mission-critical, complex engineered components for energy and aerospace and defence sectors, serving leading global OEMs such as GE, Honeywell, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace, MAN Energy Solutions, Boeing, Hindustan Aeronautics, Tatas among others. Company manufactures ‘zero parts per million’ defect products, with 90% of Rs. 252 cr revenue from energy sector. Airfoils/ blades, one of the most critical 3D rotating and stationary parts of a turbine in the compression section, accounted for 72% of revenue.

In our IPO Analysis, we had concluded - New capacity providing healthy growth visibility, which combined with superlative margins justify the pricing. Hence, we recommend ‘apply’ in the IPO.