Azad Engineering IPO: Should You Subscribe?

Azad Engineering IPO opened for subscription today. The price band for Azad Engineering IPO has been established at ₹499 to ₹524 per share. The IPO structure comprises a fresh issue of shares totalling up to ₹240 crore. Additionally, the IPO involves an Offer for Sale (OFS) of up to ₹500 crore, encompassing shares offered by both a promoter and other selling shareholders.

The issue has garnered interest as its shareholder list comprises of several big names. Sachin Tendulkar, VVS Laxman and Saina Nehwal are all invested in the manufacturer. While none of them are offloading shares in the IPO, their initial investment have appreciated heavily.

But should you subscribe to the Azad Engineering IPO?

Here is a look at the company’s financials over the last three years

Year Ending	Revenue	EBITDA	PAT	EBITDA (%)
March 2023	251.7	72.3	8.5	28.7
March 2022	194.5	62.3	29.5	32.0
March 2021	122.7	28.2	11.5	22.9

Domestic brokerage firm Ventura has a “subscribe” rating for the IPO. the brokerage said that the company’s core expertise lies in the fabrication of specialized airfoils/blades and aerospace components, making significant contributions to major aircraft platforms such as B737, B777, and A350.

Analysts also highlighted that a huge chunk of the company’s revenue comes from exports. As per the brokerage, looking ahead, the company has outlined strategic initiatives to further strengthen its position in the market. The company aims to strengthen its market position by diversifying its customer base, expanding global relationships, and introducing new product lines. AEL plans to qualify for manufacturing land-based turbine components and explore aircraft engine parts, leveraging its expertise for growth in the aerospace and energy sectors.

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