Azad Engineering Limited’s initial public offering to open on December 20, 2023

• Price Band fixed at ₹ 499 per equity share to ₹ 524 per equity share of the face value of ₹ 2 each (“Equity Shares”) of Azad Engineering Limited

• Anchor Investor Bid/Offer Period – Tuesday, December 19, 2023

• Bid /Offer Opening Date – Wednesday, December 20, 2023, and Bid/ Offer Closing Date – Friday, December 22, 2023

• Bids can be made for a minimum of 28 Equity Shares and in multiples of 28 Equity Shares thereafter

Mumbai: Azad Engineering Limited (the “Company”) proposes to open its initial public offering of Equity Shares (“Offer”) on Wednesday, December 20, 2023. The Anchor Investor Bid/Offer Period is one Working Day prior to Bid/Offer Opening Date, that is, Tuesday, December 19, 2023. Bid/ Offer Closing Date will be on Friday, December 22.

The Price Band of the Offer has been fixed from ₹ 499 per Equity Share to ₹ 524 per Equity Share. Bids can be made for a minimum of 28 Equity Shares and multiples of 28 Equity Shares thereafter.

The Offer consists of a fresh issue of up to such number of Equity Shares aggregating up to ₹ 2,400.00 million (the “Fresh Issue”) and an offer for sale of up to such number of Equity Shares aggregating up to ₹5,000.00 million, comprising of up to ₹2,049.65 million by Rakesh Chopdar, up to ₹2,608.51 million by Piramal Structured Credit Opportunities Fund and up to ₹341.84 million by DMI Finance Private Limited (collectively the, “Selling Shareholder”) (such equity shared offered by the selling shareholders, the “Offered Shares”).

The company proposes to utilize the Net Proceeds from the offer towards funding capital expenditure of the company, repayment/pre-payment, in full or part, of certain borrowings availed by the Company, and general corporate purposes.
This Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulations) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations and through the Book Building Process wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, “QIB Portion”). Our Company may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders other than Anchor Investors, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders such that: (a) one-third of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than ₹0.20 million and up to ₹1.00 million, and (b) two-thirds of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than ₹1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Investors, subject to valid Bids being received at or above the Offer Price. Further, not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account (including UPI ID (as defined hereinafter) in case of UPI Bidders) which will be blocked by the SCSBs or the Sponsor Banks as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on both BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”).

Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited and Anand Rathi Advisors Limited are the Book Running Lead Managers to the issue.

All capitalised terms referred to in this press release that have not been defined shall have the same meaning as prescribed in the RHP.