Ajax Engineering IPO opens on February 10 – Check Details

Ajax Engineering IPO

Ajax Engineering IPO: Price Band Finalized for ₹1,269 Crore Issue, Opening February 10

Ajax Engineering, a leading manufacturer of self-loading concrete mixers and other concrete equipment, has officially announced the price band for its much-anticipated Initial Public Offering (IPO).

The issue, set to raise an impressive ₹1,269.35 crore, will open for subscription on February 10, 2025, and close on February 12, 2025.

The company has set the price band for its shares at ₹599-629 per share, with a minimum lot size of 23 shares. The shares will be offered through an Offer for Sale (OFS), meaning no new shares will be issued.

Instead, existing shareholders will sell their equity holdings to the public. The listing of Ajax Engineering on the stock exchanges is expected on February 17, 2025.

IPO Details and Subscription Timeline

The Ajax Engineering IPO will be a significant event in the Indian capital markets, particularly for investors in the construction and manufacturing sectors.

The issue will open for public subscription on February 10 and close on February 12, with a price range set between ₹599 and ₹629 per share.

The minimum bid lot for retail investors has been fixed at 23 shares, translating to a minimum investment of ₹13,667 for one lot.

For institutional investors, the anchor investors will have the opportunity to submit their bids earlier, from February 7, 2025.

The final allotment of shares will be determined on February 13, 2025, and the company is set to make its market debut on February 17, 2025, marking a pivotal moment in the company’s growth journey and its path to becoming a publicly listed entity.

Structure of the IPO: Offer for Sale (OFS)

Ajax Engineering’s IPO will be structured entirely as an Offer for Sale (OFS), meaning the company will not raise any fresh capital through the issue of new shares.

Instead, the entire ₹1,269.35 crore will be raised from the sale of equity shares by existing shareholders.

The proceeds from the offering will go directly to these shareholders and not to the company itself.

This structure makes it clear that the primary objective of the IPO is to provide an exit opportunity for investors and promote liquidity in the company’s stock once it is listed.

Shareholder Exit and Promoters’ Offer

One of the key aspects of this IPO is that Kedara Capital, a private equity firm, will fully exit its investment in Ajax Engineering by selling its entire stake of 74.36 lakh shares, which represents approximately 6.5% of the company.

This marks the end of the firm’s involvement with Ajax Engineering, as it divests its holdings through the IPO process.

The promoters of Ajax Engineering, including Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Madhuri Vijay, Prashant Vijay, Rachel Rekha Hansen, Savita Christina Alexander, Sean Alexander, Green Haven Trust, Ohana Trust, Jacob Hansen Family Trust, and The Johns Lowes Trust, will offer 1.27 crore shares for sale as part of the OFS.

The promoters’ share sale aims to provide them with liquidity, which may help fund future ventures, reinvest in other areas, or simply unlock the value of their holdings in the company as Ajax Engineering transitions into a publicly listed entity.

Ajax Engineering’s Business and Growth Trajectory

Founded with the goal of meeting the increasing demand for high-quality concrete equipment in India, Ajax Engineering has carved out a niche for itself in the construction and concrete machinery industry.

The company is particularly known for its self-loading concrete mixers, which are integral to modern construction practices, particularly in projects that require rapid concrete mixing and transportation.

In addition to these mixers, Ajax Engineering manufactures a broad range of other concrete equipment, including batching plants and concrete pumps, serving a diverse customer base across India and in international markets.

Ajax’s focus on technological innovation and product quality has helped it build a strong reputation, especially in the growing Indian construction sector.

The company’s products are widely used in various large-scale infrastructure and construction projects, including roads, bridges, commercial buildings, and residential complexes.

The Indian construction sector has experienced significant growth in recent years, driven by government infrastructure initiatives and an expanding real estate market.

As the country continues to invest in infrastructure development, companies like Ajax Engineering are well-positioned to benefit from increasing demand for high-quality and durable concrete equipment.

Financial Performance and Key Metrics

Ajax Engineering has posted robust financial growth in recent years, highlighting the company’s strong market position and operational efficiency.

In the fiscal year 2023-24, Ajax recorded a 65.7% increase in profit, reaching ₹225.1 crore. This surge in profit was accompanied by a 51.3% increase in revenue, which totaled ₹1,741.4 crore for the same period.

The company’s strong financial results can be attributed to its ability to scale operations, expand its product offerings, and effectively tap into the growing demand for construction machinery.

In the first half of fiscal year 2024-25 (April to September), Ajax Engineering continued its upward momentum, posting a 21.8% increase in profit to ₹101 crore.

Additionally, revenue for this period grew by 12.4%, reaching ₹770 crore. This growth despite the challenging macroeconomic conditions demonstrates the resilience and financial health of Ajax Engineering.

IPO Allocation and Investor Categories

The IPO will see shares allocated to various investor categories as per regulatory guidelines:

• 50% of the offer is reserved for Qualified Institutional Buyers (QIBs), including mutual funds, insurance companies, and other large institutional investors.
• 35% of the shares will be allocated to Retail Investors, giving individual investors the opportunity to participate in the public offering.
• 15% of the shares are set aside for Non-Institutional Investors (NIIs), which includes high-net-worth individuals (HNIs) and other non-institutional entities.

This structure aims to ensure broad-based participation in the offering and allow a range of investors to take part in the company’s public debut.

Book Running Lead Managers and Registrar

The IPO is being managed by several well-established financial institutions, which will play key roles in the offering.

The book running lead managers (BRLMs) for the issue are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.

These firms bring significant expertise and experience in managing large public issues and ensuring a smooth subscription process.

The registrar to the issue is Link Intime India, which will be responsible for handling the application process, allotment of shares, and other related administrative tasks.

Final Remarks

The Ajax Engineering IPO represents an exciting investment opportunity for both retail and institutional investors.

With a solid financial track record, strong growth prospects in the construction sector, and a well-managed IPO structure, the company is poised to attract significant interest from the market.

While the company will not be raising fresh capital through this issue, the offering provides an opportunity for existing investors, including promoters and private equity firm Kedara Capital, to monetize their stakes and bring Ajax Engineering to the broader public market.

Investors looking to diversify their portfolios into the rapidly growing infrastructure and manufacturing sector should consider the Ajax Engineering IPO as a potential option.

Given the company’s strong growth trajectory and the increasing demand for high-quality construction equipment in India, this offering holds promise for long-term value creation in the coming years.