On Monday, February 17, Ajax Engineering shares make a dismal start on the NSE, trading at ₹576—an 8.43% decrease from its IPO price of ₹629. It floated for ₹593 on the BSE, which is 5.7 percent lower than the IPO price.
Ajax Engineering IPO Listing:
On Monday, February 17, Ajax Engineering’s shares made a dismal start on the NSE, trading at ₹576—a discount of 8.43% to their issue price of ₹629. On the BSE, it was quoted at ₹593, down 5.7%. The subscription period for Ajax Engineering’s ₹1,269.35 crore initial public offering (IPO) was February 10–12.
The Ajax Engineering IPO ended with high demand after three days of bidding, receiving 6.06 times bids. In contrast to the 1.41 crore shares available, 8.57 crore were bid on during the IPO. While the non-institutional investor (NII) category was subscribed to 6.46 times, the retail investor sector was booked 1.94 times. In addition, throughout the three days of bidding, the qualified institutional purchasers (QIB) quota was bid 13.04 times.
About the IPO:
There was no new equity component to the Ajax Engineering IPO; it was just an offer for sale (OFS) of 2.02 crore shares. A minimum investment of ₹13,777 was required for retail investors to apply for a minimum lot of 23 shares.
Up to 78,947 shares were reserved for workers as part of the issuance at a ₹59 discount to the issue price. On February 7, 2025, anchor investors contributed ₹379.32 crore to the IPO.
The offer will not generate any revenue for the organization. After deducting their share of offer-related costs and associated taxes, each providing shareholder will be entitled to their part of the OFS’s revenues.
The book-running lead managers for the Ajax Engineering IPO were ICICI Securities Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited. The issue’s registrar was Link Intime India Private Limited.
Ajax Engineering Limited was founded in July 1992 and specializes in producing various concrete services and equipment along the value chain. Over the previous ten years, the business has created 141 different types of concrete equipment and sold over 29,800 units in India as of September 30, 2024. About 15.96 percent of its workforce is made up of 79 full-time individuals who work on the design, engineering, and development team.
Each company’s four Karnataka production facilities—Obadenahalli, Gowribidanur, and Bashettihalli—specialize in a distinct product category; the Obadenahalli factory is especially noteworthy.
Review:
The Ajax Engineering IPO received a Subscribe rating from brokers, who noted the company’s outstanding financial performance, market leadership, and development potential.
KR Choksey: Subscribe
The Ajax Engineering IPO was given a Subscribe rating by brokerage firm KR Choksey, which cited the company’s sound financial record and fair value compared to its industry peers. From FY22 to FY24, the company’s revenue/PAT CAGR was 51% and 84%, respectively, demonstrating its remarkable development trajectory.
“Ajax Engineering offers a strong investment opportunity due to its significant market share, steady growth, and positive industry outlook. Therefore, in its study report, KR Choksey said, “We give it a ‘Subscribe’ rating.”
Reliance Securities: Subscribe
Reliance Securities, which highlighted Ajax Engineering’s first-mover advantage in launching Self-Loading Concrete Mixers (SLCMs) in India, had also suggested subscribing to the IPO. Analysts believe the company’s leading position has been reinforced by its superior goods, robust after-sales support, and global development initiatives.
“AEL is expanding its market share in non-SLCM products, improving its capabilities, and expanding its presence in foreign markets through exports while also looking into inorganic growth opportunities.” According to Reliance Securities, the business is well-positioned for future development because of its emphasis on capital efficiency, solid return ratios, and knowledgeable management team.
