4 months ago
65
Dec 20, 2023 09:26 AM IST
Azad Engineering IPO comprises ₹500 crore offer for sale (OFS) component by promoters and external investors.
Hyderabad-based Azad Engineering's initial public offering (IPO) opened for subscription on Wednesday. The ₹740 crore issue will be up for subscription till Friday, December 22.
The company announced the price band of the IPO at ₹499-524. The issue comprises ₹500 crore offer for sale (OFS) component by promoters and external investors. “The remaining ₹240 crore will be raised through fresh issue of shares,” the company's Chairman and Managing Director Rakesh Chopdar told PTI.
ALSO READ: DOMS Industries IPO to be listed today. LIVE coverage
IPO stands for Initial Public Offering and it is when the promoters of the company in question for the first time want to raise additional funds by offering shares of the company. He said the external investors who are existing the company are Piramal Structured Credit Opportunities Fund which will sell the shares for ₹261 crore. It had had invested ₹160 crore in August 2022.
IPL 2024 Auction is here! Catch all the updates LIVE on HT. Join Now
The company proposes to utilise the proceeds from the offer to part fund capital expenditure for its ₹280 crore expansion by setting up two units towards the end of the next fiscal and for repaying/pre-paying debt of around ₹90 crore.
The company nets over 80 per cent of its revenue from exports to 15 global markets.
Azad Engineering IPO GMP
The shares of Azad Engineering were being traded at a premium of ₹440 in the grey market. A grey market is an unofficial stock and applications market, where the investors trade for shares before they are officially listed in the stock market.
The estimated listing price of Azad Engineering IPO is ₹964, which is much higher than the IPO price of ₹524.
Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away! -Login Now!
- ABOUT THE AUTHOR
Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.
