Cricket icon Sachin Tendulkar has turned 50 years old. He is rarely seen holding a bat on the cricket field, but is always in the news. Now his discussion is not about cricket shots but about business sense. Yes, we are not kidding. Sachin played a bet of Rs 5 crores 9 months ago and is now earning a profit of crores of rupees. Azad Engineering’s shares were listed in the stock market on Thursday and gave a return of 531 percent to Sachin Tendulkar. How is this possible, when the company has been listed at a premium of about 37 percent. Let us also tell you how Sachin Tendulkar got such a huge profit?
Sachin got profit of Rs 26.5 crore
Shares of Hyderabad based Azad Engineering got listed on the stock exchanges on Thursday. The company has been listed at a premium of about 37 percent. The special thing is that Sachin Tendulkar got an astonishing return of 531 percent from this listing. With an estimated profit of Rs 26.5 crore in the IPO, Tendulkar has overtaken Australian fast bowler Mitchell Starc, who had become the most expensive player in the IPL by securing a deal worth Rs 24.75 crore at the beginning of the month. On March 6 this year, Tendulkar had bought equity worth about Rs 5 crore in the company, which operates in the energy, aerospace and defence, oil and gas industries.
How was the profit made?
After the pre-IPO stock split and bonus issue, he held 438,210 shares of the company. The average cost of their shares is only Rs 114.1 per share. Tendulkar had decided not to sell his stake in the Rs 740 crore IPO. His decision proved to be much better. The company was listed on NSE at Rs 720 with a premium of 37.4 percent. Whereas the issue price of the company was Rs 524. The value of his investment of Rs 5 crore has now become Rs 31.5 crore.
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These players also earned a lot
IPO has not only made Tendulkar rich, but has also made three more players PV Sindhu, Saina Nehwal and VVS Laxman rich. Each of them had invested Rs 1 crore in the company, but at the price at which ‘Master Blaster’ had bought the shares, other players bought the same shares at double the price. The average cost of shares for these three players was Rs 228.17 per share. Due to which after listing all three saw a return of 215 percent. Now the value of his stake has become Rs 3.15 crore.
IPO got good response
The IPO received a good response from investors with 80.6 times subscription. QIB subscribed the most by 179 times, followed by NII by 87 times. The retail portion received 23.7 times the bids. The Rs 740 crore IPO included fresh issue of Rs 240 crore and OFS of Rs 500 crore. Under the OFS, promoter Rakesh Chopdar, investors Piramal Structured Fund and DMI Finance sold stake.
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