Ajax Engineering IPO Opens: Aims to Raise ₹1,269 Crore, Closes on Feb 12
The Initial Public Offering (IPO) of Ajax Engineering Limited commenced on February 10, 2025, with the company aiming to raise Rs 1,269.35 crore through an Offer for Sale (OFS) of 2.02 crore shares.
The bidding process will close on February 12, 2025. Prior to the IPO opening, Ajax Engineering successfully secured Rs 379.32 crore from anchor investors.
The price band for the IPO is set between Rs 599 and Rs 629 per share. Retail investors are required to bid for a minimum lot size of 23 shares, equating to an investment of Rs 14,467.
Small non-institutional investors (sNII) need to bid at least 14 lots (Rs 2,02,538), while big non-institutional investors (bNII) must bid a minimum of 70 lots (Rs 10,12,690).
The IPO is being managed by ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets, with Link Intime India Private Ltd serving as the registrar.
Should You Subscribe?
Investors are contemplating whether they should subscribe to the IPO. Various brokerage firms have analyzed the offer and provided their recommendations.
Reliance Securities has highlighted Ajax Engineering’s growth in the non-SLCM (Self-Loading Concrete Mixers) equipment segment, as well as its expanding export footprint and potential acquisition opportunities.
The firm has expressed confidence in Ajax Engineering’s ability to maintain its leadership position in the SLCM market while broadening its presence in the concrete equipment sector.
With strong financials and a seasoned management team, Reliance Securities has recommended subscribing to the IPO.
KRChoksey Research, BP Equities, and Ventura Securities have also issued positive recommendations, advising investors to subscribe to the IPO.
Latest Grey Market Premium (GMP)
As of February 10, 2025, the latest grey market premium (GMP) for Ajax Engineering IPO stands at Rs 52.
Based on this, the estimated listing price is Rs 681, calculated by adding the upper price band of Rs 629 and the latest GMP of Rs 52. This indicates a potential listing gain of 8.27%.
The IPO allotment is expected to be finalized on February 13, 2025, with shares scheduled for listing on the BSE and NSE on February 17, 2025.
As of the latest data, the IPO has received 39.45 lakh bids against an available 1.41 crore shares, indicating 0.28 times subscription.
Offer Details
The IPO consists solely of an Offer for Sale (OFS) of up to 2.01 crore equity shares, with 1.27 crore shares being sold by the promoter, and the remainder by investor selling shareholders.
Since this is an OFS, the company itself will not receive any proceeds from the IPO. The proceeds will be allocated to the selling shareholders after deducting offer-related expenses and applicable taxes.
Anchor Investors & Company Background
Before launching the IPO, Ajax Engineering raised Rs 379.31 crore on February 7, 2025, from 23 anchor investors through the allotment of 60.30 lakh shares at Rs 629 each.
Ajax Engineering, co-founded by Krishnaswamy Vijay, the late Jacob John, and the late Anil Kumar Singh, specializes in the design, development, and manufacturing of high-quality concrete equipment.
The company sells its products through a vast dealer network in India and abroad to a variety of clients, including individual contractors, mid-sized and large construction firms, rental companies, and government agencies.
As of September 30, 2024, Ajax Engineering has 51 dealers across 23 states in India and 25 dealers/distributors internationally.
Financial Performance & Market Position
For the six months ending September 30, 2024, Ajax Engineering reported a consolidated net profit of Rs 101.02 crore on sales of Rs 769.99 crore.
Established in 1992, Ajax Engineering is a leading manufacturer of concrete equipment, offering a wide range of products such as:
- Self-Loading Concrete Mixers (SLCMs)
- Batching plants
- Transit mixers
- Boom pumps
- Slip-form pavers
- 3D concrete printers
With ~141 concrete equipment variants, the company has sold over 29,800 units in India in the last ten years to 18,900+ customers. The firm operates four assembly and manufacturing plants in Karnataka.
Industry Outlook & Growth Potential
The Indian concreting equipment market is projected to grow at a CAGR of ~11% (volume-based) and ~24% (value-based) until FY2029.
This growth represents a market opportunity of ~INR 191 billion (US$ 2.3 billion). (Source: Redseer Report).
Valuation & Investment Outlook
Considering Ajax Engineering’s market dominance, strong dealer network, asset-light business model, zero debt, and a favorable industry outlook, analysts recommend subscribing to the IPO for long-term investment potential.
