Azad Engineering subscribed 80.6 times, Tendulkar now owns 438,000 shares

The initial public offering of Azad Engineering was subscribed 80.6 times on Friday, the concluding day of its issue. The institutional investor portion was subscribed 179.6 times, the high net worth individual portion was booked 87.6 times, the retail investor portion was bought 23.8 times, and the portion reserved for employees stood at 14.7 times.  The company raised Rs 221 crore from anchor investors.

The Rs 740 crore IPO comprised a fresh issue of Rs 240 crore and an offer for sale (OFS) of Rs 500 crore. The IPO was priced between Rs 499 and Rs 524 per share. The company manufactures products for original equipment manufacturers (OEMs) in the energy, aerospace and defence, and oil and gas industries. 

Analysts had recommended the stock, citing its debt-free status post-IPO, high net margins and lower pricing compared to peers.  In March 2023, Azad Engineering sold shares to sportspersons such as Sachin Tendulkar, PV Sindhu, Saina Nehwal and Nikhat Zareen.  The average acquisition cost of these shares is lower than the IPO price as they were allotted more shares following an issue of bonus shares. 

Tendulkar now owns 438,000 shares, and the average acquisition price was Rs 114. The cricketing icon’s stake is worth Rs 22.9 crore at the current issue price.

Meanwhile, the IPO of Innova Captab, which will conclude on Tuesday, was subscribed 3.5 times.