Azad Engineering Launches QIP to Raise ₹700 Crore

Azad Engineering has initiated a qualified institutional placement (QIP) to raise up to ₹700 crore, according to regulatory filings. The company’s board approved the opening of the issue on February 25, 2025, for the QIP of equity shares with a face value of ₹2 each.

Floor Price of QIP 

As per news reports, the issue price for the QIP has been set at ₹1,280 per share. This reflects a 1.8% discount to the Securities and Exchange Board of India’s (SEBI) floor price and a 5.6% discount compared to the stock’s last closing price.

Stock Performance 

On February 25, 2025, Azad Engineering share price ended 3.01% higher at ₹1,356.60. Azad Engineering’s share price reached a 52-week high of ₹2,080 on June 20, 2024, and a 52-week low of ₹1,157.65 on March 14, 2024. As per BSE, the total traded volume for the stock stood at 6918 shares with a turnover of ₹92.87 lakhs.

At the current price, Azad Engineering shares are trading at a price-to-earnings (P/E) ratio of 103.56x, based on its trailing 12-month earnings per share (EPS) of ₹13.10, and a price-to-book (P/B) ratio of 11.74, according to exchange data.

Azad Engineering Performance Since Listing

Azad Engineering made its stock market debut in December 2023, listing at a premium of over 37% against its issue price of ₹524. Since then, the company has gained significant investor attention, positioning itself as a key player in its sector.

What is QIP-Based Fundraising?

Qualified Institutional Placement (QIP) is a key fundraising mechanism for listed companies, introduced by SEBI to enable capital raising through the issuance of securities to qualified institutional buyers (QIBs).

Earlier, Indian companies faced challenges in raising funds domestically, often turning to international markets for financing. To overcome this, SEBI established the QIP framework, making it easier for companies to secure capital within the domestic market.

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