Azad Engineering saw its shares rally more than 5% on the second day of its listing on the bourses after Abu Dhabi Investment Authority (ADIA) picked up a 0.67% stake in the Sachin Tendulkar-backed company. 

Shares of Azad Engineering reached an intraday high of Rs 714.40 in the early trading hours, up 5.4% from the previous closing price on the National Stock Exchange (NSE). At 11:55 am, the scrip was trading 2.86% higher at Rs 696.90. 

On Thursday, December 28, the sovereign wealth fund ADIA bought 3.98 lakh equity shares, or 0.68% of the paid-up equity capital of the high-precision forged and machined component maker, at an average price of Rs 719.90 apiece. 

Hyderabad-based Azad Engineering made a strong debut at the bourses after its Rs 740-crore initial public offering (IPO) 83 times overall. The issue had a combination of fresh shares worth Rs 240 crore by the company and an offer-for-sale of shares worth Rs 500 crore by existing shareholders.

The newly-debuted company will spend Rs 60.4 crore from the fresh issue proceeds on buying plant and machinery and repay debts amounting to Rs 138.19 crore. The remaining amount will be utilised for general corporate purposes.