Azad Engineering Limited has filed Draft Red Herring Prospectus (DRHP) with market regulator Securities Exchange Board of India (SEBI) to launch its initial public offering (IPO) on India stock market.

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The IPO will comprise a fresh issue of up to Rs 2400 million and an offer for sale of equity shares of face value of Rs 2 each aggregating up to Rs 5000 million.

The offer for sale comprises equity shares aggregating up to Rs 1700 million by Rakesh Chopdar, equity shares aggregating up to Rs 2,800 million by Piramal Structured Credit Opportunities Fund and equity shares aggregating up to Rs 500 million by DMI Finance Private Limited.

The company proposes to utilize the net proceeds from the offer towards Funding capital expenditure of the company, repayment or pre-payment, in full or part, of certain borrowings availed by the Company, and general corporate purposes.

Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited and Anand Rathi Advisors Limited are the Book Running Lead Managers to the issue.

About Azad Engineering

Azad Engineering is one of the key manufacturers of their qualified product lines supplying to global original equipment manufacturers  in the aerospace and defence, energy, and oil and gas industries, manufacturing highly engineered, complex and mission and life-critical components. 

Azad Engineering competes with manufacturers from China, Europe, USA and Japan. Their customers include global OEMs across the aerospace and defence, energy, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE.

Azad Engineering’s components have been supplied to countries such as USA, China, Europe, Middle East, and Japan since their inception. Accordingly, they are a key link in the global supply chain for OEMs. 

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The company has increased their revenue from Rs 1,240.00 million in Financial Year 2020 to Rs 2,516.75 million in Financial Year 2023 (CAGR of 27% between Financial Years 2020 and 2023) with an adjusted EBITDA margin of 31.61% in Financial Year 2023.