Azad Engineering Share: Increase of 5% after Abu Dhabi company buys stake

Azad Engineering stock, which was listed on the stock market just a day ago, saw a rally on Friday when the Abu Dhabi company announced a stake buy, sending shares rocketing.

Abu Dhabi Investment Authority company Azad Engineering ltd. After the news of purchasing the stake, the shares of this company saw an increase of up to 5 percent on Friday.

After its listing on the stock market on December 28, 2023, shares of Azad Engineering Limited saw a rise of up to 5 percent on Friday. The stock price increased due to the news on the very first day of listing.

Azad Engineering is a global original equipment manufacturer serving the aerospace and defense, energy, and oil and gas industries. Cricket legend Sachin Tendulkar has also invested in this company, from which he has got huge profits.

Sachin’s investment came to him at the time of this transfer when the shares of Azad Engineering were listed on NSE at Rs 720 on Thursday. The IPO offer price was Rs 524 per share, fetching a strong premium of 37.4%. The value of his investment of Rs 5 crore increased to more than Rs 26 crore as soon as the shares were listed.

Shares of Azad Engineering rose as much as 5 percent on Friday after news that Abu Dhabi Investment Authority was buying a stake in the company. This stock hit a high of Rs 714.40 on Friday. However, due to profit booking, the stock closed at the level of 691.60, which is 2 percent more than its closing on the first day.

The sovereign wealth fund has bought 3.98 lakh equity shares in Azad Engineering at an average price of Rs 719.9 per share, aggregating to Rs 28.65 crore, after Abu Dhabi Investment Authority bought a stake in the company.

Azad Engineering is a manufacturer and supplier of key components to original equipment manufacturers in the energy, aerospace, defense and oil & gas sectors. The company has a global presence and supplies to OEMs in various countries, such as the United States, China, Europe, Japan, and the Middle East. Azad Engineering’s major customers include Honeywell International, Mitsubishi Heavy Industries, General Electric, Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.

In FY2023, the company projected its revenue from operations to grow 31% year-on-year to Rs 261 crore, while net profit for the period declined 71% to Rs 8.4 crore. The company’s revenue grew at a CAGR of 43% between FY21 and FY23 and PAT margin grew at a CAGR of 49% over the same period.

Azad Engineering Shares

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