Business
Azad Engineering IPO fetches Tendulkar more money than most expensive IPL player; Sindhu, Nehwal, Laxman also gain – Times of India
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Sachin Tendulkar‘s Rs 5-crore investment made nine months ago has reaped staggering returns of 531% as Hyderabad-based Azad Engineering debuted on stock exchanges today. Back in March, Tendulkar acquired equity worth roughly Rs 5 crore in Azad Engineering, specializing in precision forged components for global OEMs in energy, aerospace, defense, and oil & gas sectors.
This investment bet by Sachin Tendulkar has garnered a notional profit of Rs 26.5 crore in the IPO, surpassing Mitchell Starc’s recent record IPL deal worth Rs 24.75 crore, according to an ET report.Incidentally, Mitchell Starc became the most expensive player in the IPL.
After a stock split and bonus issue before the IPO, Tendular held 438,210 shares at an average acquisition cost of Rs 114.1 per share. Choosing not to divest his stake in the Rs 740-crore IPO proved a wise move, as it opened at Rs 720 on NSE, a 37.4% premium over the issue price of Rs 524. The value of his initial Rs 5-crore investment now stands at Rs 31.5 crore.The IPO’s success has not only made Tendulkar wealthier, but also brought gains to PV Sindhu, Saina Nehwal, and VVS Laxman, who each invested Rs 1 crore at twice Tendulkar’s entry price. Their acquisition cost stands at Rs 228.17 per share, and has bagged them a 215% return, valuing their stake at Rs 3.15 crore.
Shivani Nyati, Head of Wealth at Swastika Investmart says that Azad Engineering’s strong fundamentals and growth potential make it an attractive proposition for investors eyeing growth in the manufacturing sector. She believes that those holding IPO shares might consider retaining them. Shivani further advises cautiousness and setting a stop loss at around Rs 650 due to valuation and potential risks.
This investment bet by Sachin Tendulkar has garnered a notional profit of Rs 26.5 crore in the IPO, surpassing Mitchell Starc’s recent record IPL deal worth Rs 24.75 crore, according to an ET report.Incidentally, Mitchell Starc became the most expensive player in the IPL.
After a stock split and bonus issue before the IPO, Tendular held 438,210 shares at an average acquisition cost of Rs 114.1 per share. Choosing not to divest his stake in the Rs 740-crore IPO proved a wise move, as it opened at Rs 720 on NSE, a 37.4% premium over the issue price of Rs 524. The value of his initial Rs 5-crore investment now stands at Rs 31.5 crore.The IPO’s success has not only made Tendulkar wealthier, but also brought gains to PV Sindhu, Saina Nehwal, and VVS Laxman, who each invested Rs 1 crore at twice Tendulkar’s entry price. Their acquisition cost stands at Rs 228.17 per share, and has bagged them a 215% return, valuing their stake at Rs 3.15 crore.
Shivani Nyati, Head of Wealth at Swastika Investmart says that Azad Engineering’s strong fundamentals and growth potential make it an attractive proposition for investors eyeing growth in the manufacturing sector. She believes that those holding IPO shares might consider retaining them. Shivani further advises cautiousness and setting a stop loss at around Rs 650 due to valuation and potential risks.
The Azad Engineering IPO witnessed robust investor interest, with an 80.6 times subscription, heavily subscribed by QIBs (179 times) and NIIs (87 times) with the retail segment at 23.7 times.
The IPO included a fresh equity issue of Rs 240 crore and an offer for sale (OFS) of Rs 500 crore. Promoters Rakesh Chopdar, Investor Piramal Structured Fund, and DMI Finance offloaded their stakes under the OFS.
Read From ET | Tendulkar’s investment in Azad Engineering
Azad Engineering services key OEMs in aerospace, defense, and turbine manufacturing, catering to industry giants like General Electric, Honeywell International, and Siemens Energy, among others, accounting for 70% of the gas turbine market share.
