Ajax Engineering shares had a weak debut on Monday, February 17, listing at ₹576 on NSE, an 8.43% discount to the IPO price of ₹629. On BSE, the stock opened at ₹593, down 5.7% from its IPO price.
Ajax Engineering IPO Listing: Weak Market Debut
Ajax Engineering shares had a weak stock market debut on Monday, February 17. The stock opened at ₹576 on NSE, which is 8.43% lower than its IPO price of ₹629. On BSE, it started at ₹593, down by 5.7% from the IPO price.
About the IPO
The Ajax Engineering IPO was valued at ₹1,269.35 crore and was open for subscription from February 10 to February 12. The IPO saw high demand, with a subscription of 6.06 times the shares offered. A total of 8.57 crore bids were received against 1.41 crore shares available.
- Retail investors subscribed 1.94 times the shares available for them.
- Non-Institutional Investors (NII) subscribed 6.46 times.
- Qualified Institutional Buyers (QIBs) subscribed 13.04 times.
The IPO was a complete offer for sale (OFS) of 2.02 crore shares, with no fresh equity issue. Retail investors had to apply for a minimum of 23 shares, which required an investment of ₹13,777.
There was also a special reservation of 78,947 shares for employees, offered at a ₹59 discount per share. Before the IPO opened, Ajax Engineering raised ₹379.32 crore from anchor investors on February 7, 2025.
Since the IPO was an offer for sale, the company itself will not receive any funds from it. The proceeds will go to the selling shareholders after deducting expenses and taxes.
Key Players in the IPO
- Book Running Lead Managers: ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, SBI Capital Markets.
- Registrar: Link Intime India Private Ltd.
About Ajax Engineering
Founded in July 1992, Ajax Engineering Limited manufactures a wide range of concrete equipment. As of September 30, 2024, the company has developed 141 different equipment variants and sold over 29,800 units in India in the last 10 years.
The company has a strong research and development team, with 79 full-time employees, making up 15.96% of its total workforce. It operates four manufacturing units in Karnataka, located in Obadenahalli, Gowribidanur, and Bashettihalli. Each unit specializes in different products, with the Obadenahalli facility being a key production center.
Market Review and Expert Opinions
Many brokerages recommended subscribing to the Ajax Engineering IPO due to its strong financials, market leadership, and growth potential.
KR Choksey: Subscribe
KR Choksey assigned a ‘Subscribe’ rating, highlighting Ajax Engineering’s good financial performance. The company’s revenue grew at 51% CAGR and its profit at 84% CAGR from FY22 to FY24.
“With its leading market position, steady growth, and positive industry outlook, Ajax Engineering is a strong investment opportunity,” KR Choksey said.
Reliance Securities: Subscribe
Reliance Securities also recommended subscribing, emphasizing Ajax Engineering’s early entry into the self-loading concrete mixer (SLCM) market. The company’s strong product quality, after-sales service, and market expansion strategy help maintain its leadership.
“Ajax Engineering has expanded its presence in non-SLCM products, is growing in export markets, and is exploring mergers and acquisitions. With a focus on efficient capital use, strong return ratios, and an experienced management team, the company has solid growth potential,” Reliance Securities noted.
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