Posted on February 10, 2025, by Niftynews
The Ajax Engineering IPO opens for public subscription today, February 10, 2025. The company, a prominent manufacturer of concrete equipment, is seeking to raise approximately ₹1,269 crore from the offering. The IPO consists entirely of an offer for sale (OFS), with promoters and investors selling up to 20.2 million equity shares. Ajax Engineering has already raised ₹379.32 crore from anchor investors, with the bidding process having concluded on February 7, 2025.
Ajax IPO Price Band and Lot Size
The Ajax Engineering IPO is being offered at a price band of ₹599-629 per share, with a lot size of 23 shares. Retail investors can bid for a minimum of 23 shares, which amounts to ₹14,467. They can apply for up to 13 lots (299 shares) with a total investment of ₹1,88,071.
Ajax Engineering IPO Grey Market Premium (GMP)
As of February 10, 2025, Ajax Engineering shares were trading at a decent grey market premium (GMP). The shares were priced at ₹681 apiece in the grey market, reflecting a premium of ₹52 or 8.27% over the upper price band of ₹629. This indicates investor optimism about the IPO, with the GMP showing a positive sentiment.
Ajax Engineering IPO Allotment and Listing Date
The subscription window for the Ajax Engineering IPO is expected to close on February 12, 2025. The basis of allotment is likely to be finalized by February 13, 2025, and the shares will be credited to demat accounts by February 14, 2025. The listing date is tentatively set for February 19, 2025, on both the BSE and NSE.
Brokerage Views on Ajax Engineering IPO: Should You Subscribe?
Several brokerages have reviewed the Ajax Engineering IPO positively, assigning it a Subscribe rating. Here’s a quick summary of what key analysts are saying:
- KR Choksey: The brokerage has assigned a Subscribe rating, noting the company’s solid financial performance, with a CAGR of 51% in revenue and 84% in profit after tax (PAT) from FY22 to FY24. KR Choksey views Ajax Engineering as reasonably priced compared to its industry peers.
- Reliance Securities: Analysts at Reliance Securities recommend subscribing to the IPO, citing Ajax’s first-mover advantage in the Self-Loading Concrete Mixers (SLCMs) market in India. With a robust product range, expanding export business, and strong financials, the company is well-positioned for growth.
- BP Equities: BP Equities also recommends a Subscribe rating, highlighting the significant growth in India’s concrete equipment market, driven by increased cement consumption and infrastructure projects. The company has delivered strong performance, and its valuation is attractive compared to industry peers.
Ajax Engineering Business Overview
Ajax Engineering is a leading concrete equipment manufacturer with a wide range of products and services across the concrete application value chain. The company offers several equipment types, including:
- Self-loading concrete mixers (SLCMs)
- Batching plants for concrete production
- Transit mixers for transporting concrete
- Boom pumps and concrete pumps for placing concrete
- Slip-form pavers for paving concrete
- 3D concrete printers
Ajax has established a comprehensive product portfolio, which positions it well within the expanding construction and infrastructure market in India. The company serves a diverse base of clients, including those in the transportation, irrigation, and renewable power sectors.
Conclusion:
Given the positive reviews from brokerages like KR Choksey, Reliance Securities, and BP Equities, and favorable market conditions in the concrete equipment sector, the Ajax Engineering IPO appears to be a good investment opportunity for those looking for exposure to the growing infrastructure and construction markets in India. The GMP is also encouraging, reflecting market optimism.
Investors should consider their own risk tolerance and investment goals before subscribing to the Ajax Engineering IPO. Be sure to track the subscription numbers and market sentiment leading up to the listing to make an informed decision.
