Azad Engineering raises ₹221 crore from anchor investors ahead of IPO
₹220.8 crore by selling shares to anchor investors on December 19, a day prior to the IPO launch. Prominent investors, including Abu Dhabi Investment Authority, Nippon Funds, ICICI Prudential Mutual Fund, Kotak Mahindra Trustee, Tata MF, Eastspring Investments, Bandhan MF, HDFC Life Insurance, Bajaj Allianz Life Insurance, and Max Life Insurance, expressed keen interest in the company.
In its filing to exchanges, the Telangana-based firm stated that, in collaboration with merchant bankers, it has concluded the allocation of 42,13,731 equity shares to anchor investors at a price of ₹524 per share. Additionally, the company disclosed that out of the total shares allocated to anchor investors, 19,10,056 equity shares were allotted to six mutual funds through ten schemes.
The ₹740-crore Azad Engineering initial public offering (IPO) is set to open for subscription on December 20, with a price range of ₹499-524 per share. Investors can participate in the IPO until December 22.
Comprising a combination of fresh share issuances amounting to ₹240 crore by the company and a ₹500 crore offer-for-sale (OFS) of shares by existing shareholders, the Azad Engineering IPO includes the sale of shares by Promoter Rakesh Chopdar, as well as by investors Piramal Structured Credit Opportunities and DMI Finance. Azad Engineering, a manufacturer of products for global original equipment manufacturers in the energy, aerospace and defense, and oil and gas industries, is predominantly owned by Promoter Rakesh Chopdar, who holds a 78.61 percent stake.
The second-largest shareholder is Piramal Structured Credit Opportunities Fund, with a 9.13 percent stake. The net proceeds of ₹60.4 crore from the fresh issue will be allocated for the acquisition
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