Ajax Engineering IPO: Key Details, Subscription Dates, GMP, and Expert Recommendations

Ajax Engineering’s ₹1,269 crore IPO, fully an Offer for Sale, will be open for subscription from February 10-12, 2025, with a price band of ₹599-₹629 per share. The company, backed by Kedaara Capital, has raised ₹379 crore from anchor investors and holds a 77% market share in the Self-Loading Concrete Mixer (SLCM) segment. KR Choksey has recommended subscribing to the IPO, citing strong financials, market leadership, and growth potential.

CONTENTS:

• Ajax Engineering IPO: Key Details on Subscription, Price Band, and Listing
• Ajax Engineering IPO: Key Details Ahead of Public Subscription
• KR Choksey Recommends ‘Subscribe’ for Ajax Engineering Ltd IPO

Ajax Engineering IPO: Key Details on Subscription, Price Band, and Listing

Kedaara Capital-backed concrete equipment manufacturer Ajax Engineering Ltd is set to launch its initial public offering (IPO) for public subscription from February 10 to February 12, 2025. The company has already secured over Rs 379 crore from anchor investors, including SBI Mutual Fund, Axis MF, HSBC MF, Edelweiss MF, ITI MF, Amundi Funds New Silk Road, and Franklin Templeton Investment Funds.

IPO Details:

• Price Band: Rs 599 to Rs 629 per share
• Issue Type: Entirely an Offer for Sale (OFS) of 2.01 crore shares, with Kedaara Capital selling 74.37 lakh shares
• Market Capitalization: Estimated at Rs 7,200 crore (at the upper price band)

Company Overview:

Ajax Engineering, headquartered in Bengaluru, Karnataka, operates four manufacturing and assembling units, with an additional facility under construction in Adinarayanahosahalli, expected to commence operations by August 2025.

Financial Performance:

For FY24, the company reported:

• Revenue from operations: Rs 1,741 crore
• Profit after tax (PAT): Rs 225 crore

GMP & Listing Expectations:

The grey market premium (GMP) for Ajax Engineering IPO is currently Rs 40, suggesting a potential listing price of Rs 669 per share, reflecting a 6.36% premium over the upper price band.

Key Dates:

• IPO Subscription: February 10 – February 12, 2025
• Expected Listing Date: February 17, 2025

Book Running Lead Managers:

ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets are managing the IPO.

Ajax Engineering IPO: Key Details Ahead of Public Subscription

Concrete equipment manufacturer Ajax Engineering, backed by Kedaara Capital, has secured over ₹379 crore from anchor investors ahead of its ₹1,269 crore initial public offering (IPO). The IPO will be open for public subscription from February 10 to 12, 2025.

IPO Details:

• Issue Size: ₹1,269 crore
• Price Band: ₹599 to ₹629 per share
• Issue Type: Entirely an Offer for Sale (OFS) of 2.01 crore shares
• Kedaara Capital’s Stake Sale: 74.37 lakh shares
• Market Capitalization: ₹7,200 crore (at the upper price band)
• Proceeds: Since the IPO is a complete OFS, Ajax Engineering will not receive any funds from the issue

Anchor Investors:

The company has allocated 60.3 lakh shares to 23 funds at ₹629 per share, raising ₹379.3 crore. Notable investors include:

• SBI Mutual Fund
• Axis Mutual Fund
• HSBC Mutual Fund
• Edelweiss Mutual Fund
• ITI Mutual Fund
• Amundi Funds New Silk Road
• Franklin Templeton Investment Funds

Company Overview:

Ajax Engineering specializes in manufacturing concrete equipment and related solutions. The company operates four manufacturing and assembling units in Karnataka, with an additional facility under construction in Adinarayanahosahalli, expected to be operational by August 2025.

Financial Performance (FY24):

• Revenue from operations: ₹1,741 crore
• Profit after tax (PAT): ₹225 crore

Book Running Lead Managers:

• ICICI Securities
• Citigroup Global Markets India
• JM Financial
• Nuvama Wealth Management
• SBI Capital Markets

Expected Listing Date:

The shares are set to be listed on February 17, 2025.

KR Choksey Recommends ‘Subscribe’ for Ajax Engineering Ltd IPO

Brokerage firm KR Choksey has issued a “Subscribe” rating for Ajax Engineering Ltd’s IPO, citing the company’s strong financials, market leadership, and promising industry outlook.

Company Overview:

Ajax Engineering is a leading manufacturer of concrete equipment, offering a diverse range of products such as:

• Self-Loading Concrete Mixers (SLCMs)
• Batching plants
• Transit mixers
• Boom pumps
• Slip-form pavers
• 3D concrete printers

As of September 30, 2024, the company had developed 141 equipment variants and sold over 29,800 units in India over the past decade.

Manufacturing and Market Presence:

• Operates four manufacturing facilities in Karnataka, including the Obadenahalli plant, spanning 39,660 sq. meters, which is one of the largest SLCM manufacturing units globally.
• Pioneered India’s first in-house slipform paver (2019) and commercialized a 3D concrete printer (2023).
• Accounts for 12% of India’s concrete production through its SLCMs (FY24).
• Holds an approximate 77% market share in the SLCM segment as of H1 FY25.

Financial Performance & Valuation:

• Revenue and PAT CAGR (FY22–FY24): 51% and 84%, respectively.
• The company is competitively valued against industry peers.

Investment Outlook:

With a strong market presence, consistent growth trajectory, and positive industry trends, KR Choksey considers Ajax Engineering a compelling investment opportunity and recommends subscribing to the IPO.