Ajax Engineering’s IPO Day 3 Live Updates: Ajax Engineering Ltd’s initial public offering (IPO) was 49% subscribed on Tuesday, the second day of bidding. The demand for the IPO has been modest thus far, albeit the amount earmarked for staff has been fully booked, while retail and non-institutional investors have only booked half of their allocation across the two days.
The allocation for non-institutional investors was subscribed to at 61%, while the retail individual investors (RIIs) sector received 52%. The qualified institutional buyers (QIB) group saw a 33% subscription rate. On the first day of bidding, the Ajax Engineering IPO subscription stood at 28%. The Bengaluru-based business will finish its ₹1,269 crore inaugural share offering on Wednesday. The price range is fixed at ₹599 to ₹629 per share.
This IPO is an offer-for-sale (OFS) for 2.01 crore shares for ₹1,269 crore at the highest price point, offered by promoters and an investment shareholder. In this OFS, Kedaara Capital intends to sell 74.37 lakh shares. Ajax Engineering is a well-known producer of concrete equipment, offering a diverse range of products, services, and solutions across the concrete application value chain. The firm has four production and assembly factories in Karnataka, each focused on a particular product line. In addition, a production and assembly plant is now being developed in Adinarayana Hosahalli, Karnataka, and is expected to be operational by August 2025.
Canara Bank Securities comments on the Ajax Engineering IPO:
Ajax Engineering’s IPO Day 3 Live Updates: Ajax Engineering Limited has established itself as a global leader in the fast-increasing self-loading concrete mixer (SLCM) segment, which accounted for 86.1% of total revenue in fiscal year 24. The firm can benefit from the ongoing switch to automated concrete equipment.
The company’s sales increased from ₹763 crore in FY22 to ₹1,714 crore in FY24, owing to rising demand for construction equipment during India’s infrastructure building boom. Ajax has a P/E ratio of 31.96x, which is lower than the industry average of 42.51x and indicates a comparatively affordable price.
Given its high growth potential, reasonable valuation, and alignment with India’s infrastructure growth trajectory, we recommend subscribe to this IPO for listing gains and long-term investment possibilities based on its solid fundamentals and market positioning.
