Ajax Engineering, a well-established name in the concreting equipment industry, is set to launch its Initial Public Offering (IPO). With a strong legacy since its inception in 1992, Ajax has grown into the global leader in self-loading concrete mixers. This IPO, valued at ₹1,269.35 crores, is an Offer for Sale (OFS) of 201.80 lakh shares, offering a great opportunity for investors. The IPO will open on February 10, 2025, and close on February 12, 2025, with a tentative listing date set for February 17, 2025. Here's everything you need to know about this IPO.

Key Details:

• Price Band: ₹599 - ₹629 per share
• Market Capitalization: ₹7,196.18 crores at the higher price of ₹629
• Lot Size: 23 shares (retail investors need to invest a minimum of ₹14,467)
• Subscription Period: From February 10 to February 12, 2025
• Expected Listing Date: February 17, 2025
• Book Running Lead Managers: ICICI Securities, Citigroup, JM Financial, Nuvama Wealth, SBI Capital Markets

This IPO presents an exciting investment opportunity, considering the company's strong market position in self-loading concrete mixers and its steady growth trajectory over the past few years.

Financial Performance and Valuation

Ajax Engineering has shown strong financial growth with revenue figures and profit margins steadily improving. For the fiscal year 2024, the company recorded ₹7,941.56 million in revenues, and a profit after tax (PAT) of ₹1,010.22 million. With a pre-issue P/E ratio of 32.12x and a post-issue P/E ratio of 32.12x, this IPO is priced fairly, considering the industry average of 45x.

Ajax's robust management team, with over 40 years of combined experience in manufacturing, financial planning, and corporate affairs, adds to the strength of the company’s future prospects.

Grey Market Premium (GMP) and Subscription Status

Currently, the Grey Market Premium (GMP) for the Ajax Engineering IPO is showing 0.00%, indicating no expected listing gains. However, it's important to note that GMP trends are not always an accurate indicator of future listing performance, as they are based on unorganized market activities.

As the IPO opens, investors can track live subscription status and other critical information online. Here’s a quick guide to checking your allotment status:

• Go to the IPO allotment status page
• Choose Ajax Engineering IPO from the dropdown list
• Enter your application number or PAN number
• Check your allotment status

Ajax Engineering: A Global Leader in Concreting Solutions

Ajax Engineering is renowned for its world-class engineering and exceptional after-sales service, which have contributed to its success. The company manufactures high-quality self-loading concrete mixers, which are crucial for the construction industry. Since its establishment, Ajax has established itself as a key player in the global market, providing innovative solutions that enhance efficiency and productivity in concreting operations.

Why Invest in Ajax Engineering IPO?

Despite the Grey Market Premium (GMP) indicating no immediate listing gains, the solid financial performance and strong market position of Ajax Engineering make it a worthwhile investment. Investors looking for long-term value and stable returns may consider applying for this IPO.

The management’s experience and the company’s growth trajectory indicate that Ajax is poised for continued success in the coming years. The company’s healthy financial ratios, including ROE (24.53%), ROCE (32.82%), and RoNW (19.39%), provide a promising outlook.

IPO Allotment Status

For investors who have applied for the Ajax Engineering IPO, the allotment status will be available on February 13, 2025. It’s easy to check your allotment status by visiting the registrar's website or following the steps mentioned above.

Final Thoughts: Should You Apply for the Ajax Engineering IPO?

In conclusion, Ajax Engineering's IPO provides an exciting opportunity for investors interested in the construction and manufacturing sector. While the GMP trends suggest no immediate gains, the company’s financial performance, strong leadership, and steady growth make it a solid investment choice for long-term investors.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

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