Engineered precision forged and machined components manufacturing firm Azad Engineering sold Rs 220.8 crore worth of shares to anchor investors on December 19, a day before the IPO opening.
Marquee investors showed interest in the company, 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.
The Telangana-based firm in its filing to exchanges said in consultation with merchant bankers, it has finalised the allocation of 42,13,731 equity shares to anchor investors at Rs 524 per share.
It further said of the total allocation of shares to anchor investors, 19,10,056 equity shares to 6 mutual funds which applied through 10 schemes.
The Rs 740-crore Azad Engineering IPO will be opening for subscription on December 20, with the price band at Rs 499-524 per share. The last day for subscription to the IPO will be December 22.
The Azad Engineering IPO is a mix of fresh issues of shares worth Rs 240 crore by the company and an offer-for-sale (OFS) of Rs 500 crore worth shares by existing shareholders.
Promoter Rakesh Chopdar, and investors Piramal Structured Credit Opportunities and DMI Finance will be selling shares in the OFS.
Azad Engineering, which manufactures products for global original equipment manufacturers in the energy, aerospace and defence, and oil and gas industries is majorly owned by the promoter Rakesh Chopdar with a 78.61 percent shareholding.
Piramal Structured Credit Opportunities Fund is the second biggest shareholder in the company with a 9.13 percent stake.
Azad Engineering will spend Rs 60.4 crore of the net fresh proceeds for buying plant and machinery, and Rs 138.19 crore for repaying debts. The firm will keep the remaining fresh issue money for general corporate purposes.
Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors are acting as merchant bankers on the issue.
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