Ipo: Sachin Tendulkar-backed Azad Engineering raises Rs 221 crore from 20 anchor investors on IPO eve
HYDERABAD: Cricketing legend Sachin Tendulkar-backed Azad Engineering, which manufactures complex and highly engineered precision forged and machined components, has raised nearly Rs 221 crore from around 20 anchor investors on the eve of its Rs 740-crore initial public offering.
The allocation of 42,13,731 shares for Rs 220.8 crore has been done at an anchor investor allocation price of Rs 524 a share, which is the upper end of the price band of Rs 499-524 per share fixed for the IPO that opens on Wednesday (December 20) and closes on December 22.
The allocation has been done at a premium of Rs 522 per share of Rs 2 face value each. With this nearly 30% of the Rs 740 crore IPO has already been subscribed.
The anchor investors includes marquee investors such as the Abu Dhabi Investment Authority – Monsoon, Nomura Funds Ireland Public Ltd Company – Nomura Funds Ireland-India Equity Fund and Ashoka India Equity Investment Trust LLC, all of whom have been allocated 4,67,572 shares each or a little over 11% each of the anchor investor portion.
The other major anchor investors allocated shares include Nippon Life India Trustee Ltd-Nippon India Small Cap Fund (8.03%), ICICI Prudential Flexicap Fund (6.71%), Kotak Infrastructure & Economic Reform Fund and Kotak Mahindra Trustee Co Ltd-Kotak Business Cycle Fund with 5.55% each and Natixis International Funds-Loomis Sayles Global Emerging Markets Equity Fund (5.43%), among others.
The Hyderabad-based company, which manufactures mission and life critical components for global original equipment manufacturers in sectors such as aerospace & defence, energy and oil & gas, also counts cricketer VVS Laxman and badminton champs PV Sindhu and Saina Nehwal, among others, as investors.
The IPO comprises a fresh issue of shares aggregating to Rs 240 crore and an offer for sale (OFS) of shares aggregating to Rs 500 crore by the promoters and existing investors.
While promoter Rakesh Chopdar is offering shares aggregating to nearly Rs 205 crore for sale, investors such as Piramal Structured Credit Opportunities Fund and DMI Finance Private Ltd are looking to sell shares aggregating to nearly Rs 261 crore and around Rs 34 crore, respectively.
The company plans to use the net proceeds from the offer to fund its capital expenditure and repay or prepay certain borrowings either in part or full as well as for general corporate purposes.
While the qualified institutional buyer quota has been fixed at 50%, that for retail investors is 35% and for non-institutional investors at 15%.
The shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The allocation of 42,13,731 shares for Rs 220.8 crore has been done at an anchor investor allocation price of Rs 524 a share, which is the upper end of the price band of Rs 499-524 per share fixed for the IPO that opens on Wednesday (December 20) and closes on December 22.
The allocation has been done at a premium of Rs 522 per share of Rs 2 face value each. With this nearly 30% of the Rs 740 crore IPO has already been subscribed.
The anchor investors includes marquee investors such as the Abu Dhabi Investment Authority – Monsoon, Nomura Funds Ireland Public Ltd Company – Nomura Funds Ireland-India Equity Fund and Ashoka India Equity Investment Trust LLC, all of whom have been allocated 4,67,572 shares each or a little over 11% each of the anchor investor portion.
The other major anchor investors allocated shares include Nippon Life India Trustee Ltd-Nippon India Small Cap Fund (8.03%), ICICI Prudential Flexicap Fund (6.71%), Kotak Infrastructure & Economic Reform Fund and Kotak Mahindra Trustee Co Ltd-Kotak Business Cycle Fund with 5.55% each and Natixis International Funds-Loomis Sayles Global Emerging Markets Equity Fund (5.43%), among others.
The Hyderabad-based company, which manufactures mission and life critical components for global original equipment manufacturers in sectors such as aerospace & defence, energy and oil & gas, also counts cricketer VVS Laxman and badminton champs PV Sindhu and Saina Nehwal, among others, as investors.
The IPO comprises a fresh issue of shares aggregating to Rs 240 crore and an offer for sale (OFS) of shares aggregating to Rs 500 crore by the promoters and existing investors.
While promoter Rakesh Chopdar is offering shares aggregating to nearly Rs 205 crore for sale, investors such as Piramal Structured Credit Opportunities Fund and DMI Finance Private Ltd are looking to sell shares aggregating to nearly Rs 261 crore and around Rs 34 crore, respectively.
The company plans to use the net proceeds from the offer to fund its capital expenditure and repay or prepay certain borrowings either in part or full as well as for general corporate purposes.
While the qualified institutional buyer quota has been fixed at 50%, that for retail investors is 35% and for non-institutional investors at 15%.
The shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
