Azad Engineering shares fall over 2% as company launches ₹700-crore QIP; check key details

Azad Engineering's board of directors approved the qualified institutional placement (QIP) issue on Tuesday, February 25, at the floor price of ₹1,303.08 per equity share. This is nearly 4% lower than the closing price of ₹1,355.2 apiece on the NSE on Tuesday.

The company board, in its meeting on January 3, approved a proposal to raise funds through an issue of equity shares for an aggregate amount of up to ₹1,000 crore with or without a greenshoe option.

The company stated that it may, at its discretion, offer a discount of not more than 5% on the floor price for the QIP issue. The company has proposed to raise funds to fund and part-fund its capital expenditure requirements.

Azad Engineering is a key manufacturer of qualified product lines, supplying global original equipment manufacturers in the energy, aerospace and defence, and oil and gas industries. It manufactures highly engineered, complex, mission—and life-critical components.

The Hyderabad-based firm announced earlier this month that it had signed a long-term agreement with Rolls-Royce to supply critical civil aircraft engine components.

In January, the company signed a ₹811-crore long-term contract and price agreement with Siemens Energy Global GmbH & Co. KG, for manufacturing and supply of mission-critical components, including combustion commodities, cold blades and vanes, and machined parts and assemblies.

The company reported revenue from operations of ₹120.48 crore for the December quarter of FY25 against ₹89.22 crore in the year-ago period. Net profit was ₹23.72 crore in the quarter against ₹16.80 crore in Q3FY24.