Ajax Engineering Limited, a leading name in the concreting equipment industry, has launched its much-awaited Initial Public Offering (IPO). The IPO, which opened for subscription on February 10, 2025, will close on February 12, 2025. The company is offering 201.80 lakh shares through an Offer for Sale (OFS), amounting to ₹1,269.35 crore.

IPO Details and Pricing

The price band for the IPO is set between ₹599 to ₹629 per equity share. At the upper price band of ₹629 per share, the market capitalization of Ajax Engineering Limited is estimated to be ₹7,196.18 crore. The lot size of the IPO is 23 shares, meaning that retail investors need to invest a minimum of ₹14,467 to participate. High-Net-Worth Individuals (HNIs) must apply for a minimum of 14 lots (322 shares), amounting to ₹2,02,538.

Subscription and Allotment Timeline

• Subscription Period: February 10 - February 12, 2025
• Allotment Date: February 13, 2025
• Listing Date (Tentative): February 17, 2025
• Stock Exchanges: BSE & NSE

Book Running Lead Managers & Registrar

The IPO is being managed by ICICI Securities Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited. The registrar for the issue is MUFG Intime India Private Limited.

Grey Market Premium (GMP) Analysis

As of now, the Grey Market Premium (GMP) for Ajax Engineering IPO is ₹0, indicating no speculative demand in the unlisted market. However, GMP is volatile and depends on demand and supply in the grey market. Investors should rely on fundamental analysis rather than GMP trends before investing.

Live Subscription Status & Anchor Investment

On the first day of the subscription period, the IPO was subscribed 0.28 times by 5:00 PM on February 10, 2025. The final subscription status will be available on the BSE website.

Before the IPO launch, Ajax Engineering raised ₹379.31 crore from anchor investors at ₹629 per share, allocating 60,30,449 equity shares to institutions.

Financial Performance of Ajax Engineering

The company has shown consistent revenue growth over the years. The revenues from operations for different periods are:

• ₹7,941.56 million (6 months ended Sep 30, 2024)
• ₹17,800.74 million (FY24)
• ₹11,725.69 million (FY23)
• ₹7,718.53 million (FY22)

The EBITDA and Profit After Tax (PAT) figures are also promising:

• EBITDA for FY24: ₹1,219.78 million
• PAT for FY24: ₹2,251.49 million

The pre-issue and post-issue EPS for FY24 is ₹19.58, with a P/E ratio of 32.12x, compared to the industry P/E of 45x. The company's ROCE is 32.82% and ROE is 24.53%, indicating strong financial performance.

How to Check Ajax Engineering IPO Allotment Status?

The IPO allotment status will be available on the registrar's website (MUFG Intime India Private Limited) on February 13, 2025. Investors can check their allotment using the following steps:

• Visit the IPO allotment status page.
• Select Ajax Engineering Limited IPO from the dropdown.
• Enter application number, PAN, or DP Client ID.
• Click Submit to view allotment status.

Should You Subscribe to Ajax Engineering IPO?

The company has a strong market presence in the concreting equipment industry and consistent financial growth. However, considering the current GMP of ₹0, listing gains appear uncertain. Investors looking for long-term growth may find the IPO attractive, but those aiming for quick listing gains may reconsider.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Solarium Green, Ajax Engineering, Chandan Healthcare.

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