Ajax Engineering Limited IPO: IPO Date, Price, GMP, & Details
by Ankita Lodh on 7 February 2025, 4 minutes min read
Ajax Engineering Limited is set to make its debut on the stock market with the upcoming IPO scheduled to open on February 10, 2025. The Ajax Engineering IPO aims to raise ₹1,269.35 crore through an offer-for-sale (OFS) of 2.02 crore shares, with a price band set between ₹599 and ₹629 per equity share. This article delves into the details surrounding the IPO, the company’s background, financial performance, and market positioning.
About Ajax Engineering Limited
Founded in 1992 as Ajax Fiori Engineering (India) Private Limited, Ajax Engineering has established itself as a prominent manufacturer of concrete equipment in India. The company specialises in producing a variety of products, including self-loading concrete mixers (SLCMs), batching plants, transit mixers, concrete pumps, and slip-form pavers.
Ajax Engineering holds a significant market share of approximately 77% in the self-loading concrete mixer segment, underscoring its dominance in this niche market.
The company operates four manufacturing facilities located in Karnataka and has sold over 27,800 pieces of concrete equipment across India and neighbouring countries like Nepal and Bhutan. Ajax is currently constructing a new manufacturing plant in Adinarayanahosahalli, which is expected to be completed by 2025.
Ajax Engineering Limited IPO Details
The Ajax Engineering IPO will be open for subscription from February 10 to February 12, 2025. Investors can apply for a minimum of one lot consisting of 23 shares, requiring a minimum investment of ₹14,467.
The IPO will be entirely an OFS, meaning that no fresh shares will be issued; instead, existing shareholders will sell their stakes. Notably, Kedaara Capital Fund II LLP will completely exit its investment by selling its entire stake through this offering.
| Ajax Engineering IPO Date | February 10, 2025 to February 12, 2025 |
| Listing Date | Monday, February 17, 2025 |
| Face Value | ₹1 per share |
| Price Band | ₹599 to ₹629 per share |
| Lot Size | 23 Shares |
| Total Issue Size | Book-Built Issue IPO |
| Offer for Sale | 2,01,80,446 shares of ₹1 (aggregating up to ₹1,269.35 Cr) |
| Employee Discount | 59.00 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 11,44,06,800 shares |
| Share Holding Post Issue | 11,44,06,800 shares |
For more details, refer to the Ajax Engineering IPO RHP.
Ajax Engineering IPO GMP
On February 6th, Ajax Engineering’s IPO GMP reached a high of ₹60, whereas on February 5th, it fell to ₹45. However, opinions on Ajax Engineering IPO’s GMP (Grey Market Premium) are varying, with some sources indicating a GMP of ₹0, while others report ₹35, ₹45, or ₹70.
Financial Performance
Ajax Engineering has demonstrated robust financial growth over recent years. For the fiscal year ending March 2024, the company reported a revenue increase of 51.3%, totalling ₹1,741.4 crore compared to the previous year. Net profit surged by 65.7%, reaching ₹225.1 crore during the same period. In the first half of FY2024 (ending September), Ajax Engineering recorded a profit of ₹101 crore and revenue of ₹770 crore—an increase of 21.8% and 12.4%, respectively.
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 1,348.76 | 1,236.14 | 966.73 | 735.31 |
| Revenue | 794.16 | 1,780.07 | 1,172.57 | 771.85 |
| Profit After Tax | 101.02 | 225.15 | 135.9 | 66.21 |
| Net Worth | 995.84 | 917.96 | 713.8 | 578.27 |
| Reserves and Surplus | 984.4 | 906.52 | 702.36 | 575.41 |
| Total Borrowing | 6.23 | 10.14 | 7.16 |
The company’s strong financial performance can be attributed to its strategic positioning in the concrete equipment market and its ability to capture significant market share.
Market Positioning and Competitors
Ajax Engineering competes with other established players in the construction equipment sector such as Action Construction Equipment, BEML Limited, and Escorts Kubota. Despite this competition, Ajax holds a commanding position in the self-loading concrete mixers segment due to its extensive product range and established dealer network across India.
The company’s focus on innovation and quality has allowed it to maintain a competitive edge in a rapidly evolving market. With ongoing investments in manufacturing capabilities and product development, Ajax Engineering is well-positioned for future growth.
Ajax Engineering IPO Offer Structure
The IPO’s offer structure includes allocations for various investor categories:
- Qualified Institutional Buyers (QIBs): Up to 50%
- Retail Investors: At least 35%
- Non-Institutional Investors (NIIs): Minimum of 15%.
This allocation strategy aims to attract a diverse range of investors while ensuring that retail participation remains significant.
Conclusion
The upcoming IPO of Ajax Engineering Limited presents an opportunity for investors to participate in a leading manufacturer within the concrete equipment sector in India. With solid financials and a strong market presence, many eyes are on the Ajax Engineering IPO listing.
However, investors are encouraged to consider their risk appetite and investment goals when participating in this IPO. Given that it is an offer-for-sale with no proceeds going directly to the company itself but rather to existing shareholders, understanding the motivations behind this offering is essential for making informed investment decisions.
Apply for the Ajax Engineering IPO here.
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