Azad Engineering IPO: GMP, subscription status rise. Should you subscribe as bidding ends in few hours

Azad Engineering IPO: The initial public offering (IPO) of Azad Engineering Limited opened for subscription on 20th December 2023 and it will remain open for bidding till 22nd December 2023. This means Azad Engineering IPO will close today evening and investors have just one day in their hand to apply for the public issue. The aerospace components and turbines maker company has fixed Azad Engineering IPO price at ₹499 to ₹524 per equity share. As per Azad Engineering IPO subscription status after two days of bidding, the public issue has received strong response by investors.

Meanwhile, Azad Engineering shares continue to trade strong in grey market. According to stock market observers, Azad Engineering shares are trading at a premium of ₹445 in grey market today.

Azad Engineering IPO GMP today

Market observers said that Azad Engineering IPO grey market premium (GMP) today is ₹445, which is around 85 per cent of the Azad Engineering IPO price band of ₹499 to ₹524 per equity share. Observers said that trend reversal on Dalal Street during Thursday deals could be the possible reason for aerospace component maker company's stock holding its ground in unlisted market.

Azad Engineering IPO subscription status

By 3:21 PM on day three of bidding, the public issue has been subscribed 70.46 times whereas its retail portion has been subscribed 21.43 times. The NII portion of the issue has been subscribed 80.02 times while its QIB portion got subscribed 153.13 times.

Azad Engineering IPO review

Giving 'subscribe' tag to Azad Engineering IPO, Hem Securities said, "Company is bringing the issue at price band of ₹499-524 per share at p/e multiple of 58x on post issue annualized H1FY24 PAT basis. Company is preferred name in the manufacturing of highly engineered, complex, and mission and life- critical high precision components for global OEMs growing competition from China and Eastern Europe. Company’s supplying to OEMs with high global market penetration has long-standing and deep customer relationships with advanced manufacturing facilities with a diverse range of products and solutions with focus on innovation and cost competitiveness and consistent track record of financial performance.. Hence ,looking after all above we recommend “Subscribe” on issue."

Advising investors to apply for listing gains, Motilal Oswal said, "We like AEL given its presence in the high growth niche segment with high entry barriers, diversified product/client portfolio and robust financials. It would benefit from industry tailwinds especially in A&D space which could improve its revenue mix. IPO is priced at 57.6x 1HFY24 P/E (on an annualized & diluted basis). We recommend Subscribe for listing gains, given its unique business model & buoyant primary market."

Ajcon Global Services, BP Equities, Canara Bank Securities, Indsec Securities, Nirmal Bang, Reliance Securities, SBI Securities, Swastika Investmart, Ventura Securities and Way2Wealth Securities have also given 'Apply' tag to Azad Engineering IPO.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.