The initial public offer (IPO) of Ajax Engineering received 28% subscription on day 1 of bidding. The public issue will remain open till February 12, 2025 for public subscription. The company is engaged in the manufacturing of concrete equipment and offers products, services, solutions in the concrete application value chain. The market capitalisation of the firm is estimated at Rs 7,200 at upper end of price band.
The public issue of the IPO was subscribed 0.29 times in the retail segment, 0.26 times in qualified institutional buyer (QIB) category, and 0.28 times in NII by 5 pm on February 10, 2025. The IPO is public issue of 1.41 crore equity share offering 0.70 crore share to retail investors, 0.40 crore to QIBs, and remaining 0.30 crore to NIIs. Ajax Engineering declared its revenue from operations at Rs 1741 crore while its profit after tax (PAT) announced at Rs 225 crore for the financial year 2024.
Ajax Engineering GMP
As per latest reports available at 6:00 pm, the IPO’s GMP stood at Rs 28. With price band of Rs 629.00, the IPO’s likely listing price is Rs 657. The potential gain or loss is 4.45%, according to investorgain.com.
Brokerages Call
Brokerages have been maintaining a positive outlook on Ajax Engineering IPO. Leading analyst Anand Rathi has assigned “subscribe for long term” call highlighting its presence all over the concrete application value chain, steady financial, and leadership in self-loading concrete mixers or SLCMs. “Given these factors, we believe the issue is suitable for long-term investors,” added the analyst. Meanwhile, Bajaj Broking also highlighted similar views and projected Ajax’s robust dealer network spanning all over India along with Bhutan, and Nepal. The analyst highlighted the company’s robust financials and niche construction equipment offerings as the key positives.
There some risks as well that analysts pointed out. Its business is seasonal and any decline in sales during specific quarter might affect the company’s financial performance. Also, fluctuations in raw materials rates and interruptions in the availability is likely to weigh on profitability of the firm.
Ajax Engineering’s IPO is an entirely offer for sale (OFS) of 2.01 crore shares.
Price Band
The price band of Ajax Engineering has been fixed at Rs 599 to Rs 629 per share. Meanwhile, the minimum lot size for each application is 23. On the other hand, the minimum amount needed for investment by retail investors remains at Rs 14,467. Minimum lot size investment for small non-institutional investor (sNII) remains at 14 lots or 322 shares that will amount to Rs 2,02,538. For big non-institutional investors (bNII), the minimum lot size investment is 70 lots or 1610 shares that will amount to Rs 10,12,690.
Allotment, Listing Details
Ajax Engineering’s allotment is likely to be completed by February 13, 2025 and it will be listed on the bourses (BSE, NSE) with precise listing date set as February 17, 2025.
Book Running Lead Managers
Its book running lead managers are Citigroup Global Markets India, Nuvama Wealth Management, ICICI Securities, and SBI Capital Markets.
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