Ajax Engineering IPO Day 1: GMP, Subscription Status, Price Band & Should You Subscribe?

The Ajax Engineering IPO opened for subscription on February 10, 2025, with a price band of ₹599 to ₹629 per share and an Offer for Sale (OFS) of ₹1,269.35 crore. As of Day 1, the IPO saw a subscription of 0.06 times, with retail investors subscribing 0.10 times, non-institutional investors (NIIs) at 0.06 times, and qualified institutional buyers (QIBs) yet to participate.

The Grey Market Premium (GMP) stood at ₹52, indicating a potential listing gain of 8.27%, with an estimated listing price of ₹681. Investors need a minimum investment of ₹14,467 for 23 shares, while small and big NIIs must invest at least ₹2,02,538 and ₹10,12,690, respectively. Analysts from BP Equities, KRChoksey, and Reliance Securities have given a ‘Subscribe’ rating due to the company’s strong financials, with revenue and profit growing at a CAGR of 51% and 84%, respectively.

As a market leader in Self-Loading Concrete Mixers (SLCM), Ajax Engineering is expanding its global presence and exploring acquisitions, making it an attractive investment. The IPO allotment is expected on February 13, 2025, with listing scheduled for February 17 on the BSE and NSE.

CONTENTS:

• Ajax Engineering IPO Day 1: Key Details, GMP, Price, Lot Size & Subscription Status
• Ajax Engineering IPO Day 1 GMP Live: Key Updates & How to Apply via Zerodha
• Ajax Engineering IPO Open for Bidding: Should You Subscribe?

Ajax Engineering IPO Day 1: GMP, Subscription Status, Price Band & Should You Subscribe?

Ajax Engineering IPO Day 1: Key Details, GMP, Price, Lot Size & Subscription Status

Ajax Engineering IPO Day 1: GMP The initial public offering (IPO) of Kedaara Capital-backed concrete equipment manufacturer Ajax Engineering Ltd (AEL) opened for public subscription on Monday and will close on Wednesday. The price band for the IPO is set at ₹599 to ₹629 per share, with a total issue size of ₹1,269.35 crore. As of 10:44 AM on the first day, the IPO received 0.05 times subscription, with 7,45,844 shares bid against 1,41,49,997 shares available.

GMP & Subscription Status

Ajax Engineering IPO Day 1: GMP According to market analysts, Ajax Engineering’s unlisted shares are currently trading at ₹678 in the grey market, reflecting a 7.79% premium over the upper IPO price of ₹629.

Subscription breakdown as of now:

• Retail investors: 0.08 times subscribed
• Non-institutional investors (NII): 0.05 times subscribed

Price, Lot Size & Investment Requirement

• Price Band: ₹599 – ₹629 per share
• Minimum Lot Size: 23 shares
• Retail Investor Minimum Investment: ₹14,467
• Small NII Minimum Investment (14 lots, 322 shares): ₹2,02,538
• Big NII Minimum Investment (70 lots, 1,610 shares): ₹10,12,690

Brokerage Recommendations: ‘Subscribe’ Rating

Ajax Engineering IPO Day 1: GMP Several brokerage firms have given a ‘Subscribe’ rating to the Ajax Engineering IPO due to its strong financials, dominant market position, and growth potential in the concrete equipment industry.

BP Equities:

• Strong financial growth with CAGR of 51% in revenue, 74.5% in EBITDA, and 84.4% in PAT from FY22 to FY24.
• Established dealer network of 51 dealers across 23 states.
• P/E ratio of 32.1x, which is competitive compared to industry peers.

KR Choksey:

• Strong financial track record and a Revenue/PAT CAGR of 51%/84% (FY22-FY24).
• Dominant market share and favorable industry outlook make it an attractive investment opportunity.

Reliance Securities:

• First-mover advantage in Self-Loading Concrete Mixers (SLCMs) in India.
• Expanding presence in overseas markets and pursuing inorganic growth opportunities.
• Strong financials, high return ratios, and experienced management team.

Additional Details

• IPO Type: 100% Offer-for-Sale (OFS) – No fresh issue; proceeds go to selling shareholders.
• Anchor Investors: Ajax Engineering raised ₹379 crore from anchor investors before the IPO launch.
• Listing Date: February 17, 2025 (on BSE & NSE).
• Market Capitalization: ₹7,200 crore at the upper price band.
• Lead Managers: ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, SBI Capital Markets.
• Company Operations: Four manufacturing facilities in Karnataka, with a fifth plant under construction and expected to be operational by August 2025.
• Financials (FY24):
  • Revenue: ₹1,741 crore
  • Profit After Tax (PAT): ₹225 crore

Conclusion

With a strong financial track record, robust market position, and high demand for concrete equipment, Ajax Engineering’s IPO has received positive ratings from analysts. Given its reasonable valuation, industry growth drivers, and future expansion plans, most brokerages recommend subscribing to the IPO.

Ajax Engineering IPO Day 1 GMP Live: Key Updates & How to Apply via Zerodha

How to Apply for Ajax Engineering IPO via Zerodha

1. Visit the Zerodha website and log in to Console.
2. Go to the Portfolio section and select IPOs.
3. Find Ajax Engineering IPO and click on the Bid button.
4. Enter your UPI ID, choose the quantity, and set the price.
5. Submit the application form.
6. Open your UPI app (Net Banking or BHIM) and approve the mandate to finalize the application.

Subscription Status as of Day 1: Ajax Engineering IPO Day 1: GMP

(As of February 10, 2025, 11:01 AM IST)

• Qualified Institutional Buyers (QIBs): 0.00 times
• Non-Institutional Investors (NIIs): 0.06 times
• Retail Individual Investors (RIIs): 0.10 times
• Employee Reserved: 0.16 times
• Total Subscription: 0.06 times

Objective of the IPO: Ajax Engineering IPO Day 1: GMP

The public issue is an Offer for Sale (OFS), meaning Ajax Engineering will not receive any proceeds. The funds raised will be distributed among the selling shareholders after deducting related expenses and taxes.

Key Strengths of Ajax Engineering: Ajax Engineering IPO Day 1: GMP

1. Market Leader in the rapidly expanding Self-Loading Concrete Mixer (SLCM) segment.
2. Comprehensive Product Range, covering the entire concrete application value chain.
3. Strong In-House Capabilities in design, development, and engineering.
4. Technology-Driven Manufacturing, leveraging advanced assembly processes and a robust supplier network.
5. Extensive Dealer Network, supported by a well-established distribution model.
6. Diverse Customer Base, fostering long-term relationships within the concrete equipment sector.
7. Experienced Leadership Team, backed by skilled professionals and industry expertise.

Full Portfolio of Ajax Engineering

Ajax Engineering Ltd. specializes in a wide range of concrete equipment, including:

• Self-Loading Concrete Mixers (SLCMs)
• Batching Plants
• Transit Mixers
• Boom Pumps & Concrete Pumps
• Self-Propelled Boom Pumps
• Slipform Pavers
• 3D Concrete Printers

To support its dealer network, the company employs a dedicated service team of 85 professionals (as of September 30, 2024). This team includes coordinators, managers, specialists, and customer service executives, ensuring efficient service operations and customer support.

Ajax Engineering IPO Open for Bidding: Should You Subscribe?

IPO Subscription Details

The Ajax Engineering IPO opened for public bidding on Monday, February 10, 2025, and will remain open until February 12, 2025. The company is set to raise ₹1,269.35 crore through an Offer for Sale (OFS) of 2.02 crore shares. Prior to its public launch, Ajax Engineering secured ₹379.32 crore from anchor investors.

• Price Band: ₹599 – ₹629 per share
• Minimum Lot Size: 23 shares (~₹14,467 investment)
• Small Non-Institutional Investors (sNII): Minimum 14 lots (~₹2,02,538)
• Big Non-Institutional Investors (bNII): Minimum 70 lots (~₹10,12,690)

Key IPO Details

• Lead Managers: ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets
• Registrar: Link Intime India Private Ltd
• Allotment Date: February 13, 2025
• Listing Date (BSE & NSE): February 17, 2025

Should You Subscribe to the Ajax Engineering IPO?

Several brokerage firms have analyzed the IPO and provided their recommendations:

• Reliance Securities:
  • Ajax Engineering has expanded its business beyond Self-Loading Concrete Mixers (SLCM) and gained market share in non-SLCM equipment.
  • The company is growing exports and exploring acquisitions.
  • With a diversified customer base, strong financials, and experienced management, Reliance Securities recommends subscribing to the IPO.

• Other Brokerage Recommendations:
  • KRChoksey Research, BP Equities, and Ventura Securities have also recommended subscribing to the IPO.

Latest Grey Market Premium (GMP) & Expected Listing Price

• Latest GMP (as of February 10, 2025): ₹52
• Estimated Listing Price: ₹681 (Upper Band ₹629 + GMP ₹52)
• Expected Listing Gain: 8.27%

Ajax Engineering IPO Day 1: GMP: With a strong market position, expansion strategy, and positive analyst recommendations, the Ajax Engineering IPO appears to be a promising investment opportunity.