Azad Engineering sets price band at Rs 499-524 as Rs 740-cr IPO opens on Dec 20

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Promoter Rakesh Chopdar with 78.61 percent stake and Piramal Structured Credit Opportunities Fund with 9.13 percent stake are the major shareholders in the engineered precision forged and machined components maker.

Azad Engineering that manufactures products for global original equipment manufacturers in the energy, aerospace and defence, and oil and gas industries will spend Rs 60.4 crore for buying plant and machinery, while Rs 138.19 crore of the net fresh issue proceeds will be utilised for repaying debts. And the remaining funds will be set aside for general corporate purposes.

General Electric, Honeywell International Inc., Mitsubishi Heavy Industries Ltd, Siemens Energy, Eaton Aerospace and MAN Energy Solutions SE are some of global customers.

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Half of the offer size has been reserved for qualified institutional buyers and 15 percent for high networth individuals. And the remaining 35 percent shares are set aside for retail investors.

Investors can bid for a minimum of 28 equity shares and in multiples of 28 shares thereafter. The minimum application size for retail investors will be Rs 14,672 for 28 shares and their maximum investment in the offer will be Rs 1,90,736 for 364 equity shares as they can invest up to Rs 2 lakh in any IPO.

The merchant bankers to the issue are Axis Capital, ICICI Securities, SBI Capital Markets, and Anand Rathi Advisors.