Sachin Tendulkar's investment in Azad Engineering has seen remarkable growth, increasing by 6 times following the stock's stellar listing. The cricket legend holds approximately 4.3 lakh shares of the company, acquired at an adjusted average cost of Rs 114.10 each in March 2023. The stock was listed on the bourses on December 28 at Rs 720.
Meanwhile, the investments of Saina Nehwal, PV Sindhu, and VVS Laxman have tripled. According to the prospectus, their adjusted acquisition price was Rs 228.17. Each of them holds 44,000 shares.
None of the sports stars were among the selling shareholders in the IPO. They had all acquired shares earlier in 2023, after which the company undertook a stock split and issued bonus shares.
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Incorporated in 1983, Azad Engineering Limited is a manufacturer of aerospace components and turbines. The company supplies its products to original equipment manufacturers (OEMs) in the aerospace, defence, energy, and oil and gas industries. The company has four manufacturing facilities in Hyderabad.
Some of its reputed clients include General Electric, Honeywell International, Mitsubishi Heavy Industries, Siemens Energy, Eaton Aerospace and MAN Energy Solutions.
Most analysts are positive on the company's long-term contracts, a stable customer base, and strong visibility on revenue. "We like AEL given its presence in the high growth niche segment with high entry barriers, diversified product/client portfolio and robust financials," Motilal Oswal Financial Services had said.
Also Read: Solid start | Azad Engineering lists at Rs 720, over 37% premium to IPO price
The company's IPO was subscribed 80.6 times. The qualified institutional buyers took the lead, buying 179.66 times the allotted quota. At the same time, high net worth individuals (non-institutional investors) and retail investors picked shares 87.55 times and 23.71 times the portions set aside for them, respectively.
"Upon comparing with other similar capital goods players, we observe that Azad has delivered superior growth with similar return ratios while its valuation is broadly at par with the peer group," noted Nirmal Bang.
Of the fresh issue proceeds, the company will spend Rs 60.4 crore for buying plant and machinery, and repay debts amounting to Rs 138.19 crore. Its borrowings stood at Rs 154.2 crore as of September 2023. The remaining amount will be used for general corporate purposes.
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