Azad Engineering IPO: Grey Market Premium Trends and Overview Ahead of Listing on 28 Dec 2023

Grey Market Premium (GMP) of Azad Engineering

The Grey Market Premium (GMP) for Azad Engineering's Initial Public Offering (IPO) witnessed notable fluctuations in recent days, reflecting market sentiment. On December 22, the GMP stood at ₹375, a decrease from ₹440 on December 21, continuing a downward trend from the previous days. The GMP acts as a reflection of market anticipation and often indicates the potential listing performance of a stock.

It can be List on a rate ₹900 ( 524+375) that is approximately 170% of Listing gain.

 Insightful GMP Trends

The GMP serves as a key indicator, shedding light on the trajectory investors expect a stock to take post-listing. The downward trend in Azad Engineering's GMP in the last few days hints at a possible cautionary stance or adjustment in perceived market value.

Azad Engineering's IPO Details

Azad Engineering's IPO, open for subscription from December 20 to December 22, presented a price band of ₹499 to ₹524 per share. Comprising a fresh issue and an offer for sale (OFS), the IPO saw a fresh issue of 45.80 lakh shares and an OFS of 95.42 lakh shares. With the issue and sale of 1,41,22,138 shares, the IPO aimed for a total size of ₹740 crore.

Azad Engineering's  Company Overview

Established in 1983, Azad Engineering specializes in producing intricate components for energy, aerospace, defense, and oil and gas industries. The company's global clientele includes industry giants like General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, and others. Their product range encompasses critical components for industrial applications, energy generation, defense systems, civil aircraft, and spacecraft, offering high-precision solutions for various sectors.

Implications for the Listing

The IPO's listing performance often aligns with the sentiments depicted by the GMP trends. The fluctuating GMP, signaling a decline in recent days, could influence initial market reactions upon the listing of Azad Engineering's shares on the NSE and the BSE. Investors and market observers will keenly watch how this IPO translates into the stock's performance in the secondary market.