Ajax Engineering Limited, a global leader in concreting business solutions, is set to launch its Initial Public Offering (IPO) on February 10, 2025. The IPO will offer 201.80 lakh shares through an Offer for Sale (OFS) amounting to ₹1,269.35 crores. The price band for the offering is set between ₹599 and ₹629 per equity share, with the subscription period closing on February 12, 2025. The allotment date is expected on February 13, 2025, and the shares are scheduled to be listed on both BSE and NSE on February 17, 2025.

Ajax Engineering, established in 1992, has gained a prominent reputation for self-loading concrete mixers and offers comprehensive concreting equipment. The company also boasts an impressive after-sales support network, solidifying its position as a leader in the sector.

The proceeds from the IPO will go entirely to the selling shareholders as part of the Offer for Sale. Ajax will not receive any proceeds from the sale.

Ajax Engineering IPO Key Details

• Price Band: ₹599 to ₹629 per equity share.
• Market Capitalization: At the upper price band, Ajax Engineering will have a market cap of ₹7,196.18 crores.
• Lot Size: 23 shares per lot.
• Investment Requirements: Retail investors need to invest a minimum of ₹14,467 for one lot. HNIs must apply for at least 14 lots (322 shares), totaling ₹2,02,538.

The book running lead managers for the IPO are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets, while the registrar for the issue is MUFG Intime India.

Ajax Engineering's Financial Performance

Ajax Engineering has demonstrated consistent growth in its financial performance. For the period ending September 30, 2024, the company reported revenues of ₹7,941.56 lakh, an increase from ₹7,718.53 lakh in FY22. EBITDA for FY24 stands at ₹1,434.07 lakh, and the Profit After Tax (PAT) for FY24 reached ₹1,010.22 lakh, showcasing robust profitability.

The key performance indicators include:

• Pre-issue EPS: ₹19.58
• Post-issue EPS: ₹19.58
• P/E Ratio: 32.12x (both pre and post-issue), compared to the industry P/E ratio of 45x.
• ROCE for FY24: 32.82%
• ROE for FY24: 24.53%

These financials indicate a solid growth trajectory and a fairly priced IPO.

Grey Market Premium (GMP)

As of February 5, 2025, the Grey Market Premium (GMP) for Ajax Engineering IPO is reported to be ₹0, indicating no expected premium or listing gains. The lack of any significant GMP suggests that there is minimal speculation in the grey market, and investors should approach the IPO with caution if looking for short-term gains.

Ajax Engineering IPO Live Subscription Status

The subscription period for Ajax Engineering IPO opens on February 10, 2025. Investors can track the live subscription status to gauge investor demand during the offering. This data will be available on the BSE and NSE websites as the subscription progresses.

Ajax Engineering IPO Allotment Status

The allotment status for the Ajax Engineering IPO will be available on February 13, 2025. Investors can check their allotment status by visiting the registrar's website, selecting Ajax Engineering IPO, and entering the necessary details, such as their application number, PAN, or DP Client ID.

Objectives of the Ajax Engineering IPO

Ajax Engineering will not receive any proceeds from the Offer for Sale. Instead, the selling shareholders will receive the proceeds, after deducting their portion of the related offering expenses and applicable taxes.

Ajax Engineering IPO Review and Conclusion

Ajax Engineering stands as a global leader in the manufacturing of self-loading concrete mixers and related equipment. With over 30 years of industry experience, the company has established a strong market presence. Despite the solid fundamentals and consistent growth, the lack of Grey Market Premium (GMP) may suggest that this IPO could face tepid demand in the short term.

For investors seeking a long-term play in the industrial equipment sector, Ajax Engineering presents a viable opportunity. However, given the lack of expected listing gains, we recommend avoiding the IPO for short-term speculative investments. For those interested in a steady industrial stock, Ajax Engineering offers a solid foundation based on its financial performance and market leadership.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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