Ajax Engineering Limited, a prominent manufacturer in the concrete equipment sector, is set to launch its Initial Public Offering (IPO) on February 10, 2025. The IPO will close on February 12, 2025, providing investors with a window to participate in this significant event. Established in July 1992, Ajax Engineering has carved a niche in the construction equipment industry, offering a diverse range of products and services across the concrete application value chain. Over the past decade, the company has developed over 141 variants of concrete equipment and sold more than 29,800 units in India.
Ajax Engineering IPO Dates
Investors interested in the Ajax Engineering Limited IPO should be aware of the following key dates:
- IPO Opening Date: February 10, 2025
- IPO Closing Date: February 12, 2025
- Basis of Allotment Finalization: February 13, 2025
- Initiation of Refunds: February 14, 2025
- Credit of Shares to Demat Accounts: February 14, 2025
- Listing Date: February 17, 2025
- Listing on Exchange: BSE and NSE
These dates are crucial for investors to ensure timely participation and to track the progress of their investments.
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AJAX Engineering Limited IPO: Issue Size and Price Band
The Ajax Engineering Limited IPO comprises an Offer for Sale (OFS) of 2.01 crore equity shares by existing shareholders, aggregating to ₹1,269.35 crore at the upper price band. Notably, there is no fresh issue of shares; hence, the company will not receive any proceeds from this offering. The selling shareholders include promoters and investor stakeholders such as Kedaara Capital, Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, the Jacob Hansen Family Trust, and Susie John. The price band of the IPO is set in the range of ₹599 to ₹629 per share and the face value is ₹1 per share.
Ajax Engineering Limited IPO Proceeds
As the IPO is entirely an Offer for Sale, the proceeds will be directed to the selling shareholders after deducting offer-related expenses and applicable taxes. Ajax Engineering Limited will not receive any funds from this IPO. Investors should note that the primary purpose of this IPO is to provide an exit opportunity for existing shareholders rather than to raise capital for business expansion or debt reduction.
Ajax Engineering Limited IPO
The allocation of shares in the Ajax Engineering Limited IPO shareholder quota is structured as follows:
- Qualified Institutional Buyers (QIBs): Not more than 50% of the offer
- Non-Institutional Investors (NIIs): Not less than 15% of the offer
- Retail Individual Investors (RIIs): Not less than 35% of the offer
- Employee Reservation: A portion of the offer is reserved for eligible employees, with a discount of ₹59 per equity share being offered to them.
This reservation structure ensures a balanced distribution of shares among different categories of investors, providing opportunities for participation across the spectrum.
Ajax Engineering Limited IPO Lot Size
Investors can bid for the Ajax Engineering Limited IPO in lots at a minimum lot size of 23 shares. The details are as follows:
| Investor Type | Application Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 23 | 14,467 |
| Retail (Max) | 13 | 299 | 1,88,071 |
| S-HNI (Min) | 14 | 322 | 2,02,538 |
| S-HNI (Max) | 69 | 1,587 | 9,98,223 |
| B-HNI (Min) | 70 | 1,610 | 10,12,690 |
This structure allows retail investors to invest according to their capacity, with the flexibility to apply for multiple lots within the prescribed limits.
Ajax Engineering IPO Promoter Holding
The promoters of Ajax Engineering Limited are (with a total pre-issue shareholding of 93.50%):
- Krishnaswamy Vijay
- Jacob Jiten John
- Kalyani Vijay
- Madhuri Vijay
- Prashanth Vijay
- Rachel Rekha Hansen
- Savitha Christeena Alexander
- Sean Alexander
- Green Haven Trust
- Ohana Trust
- Jacob Hansen Family Trust
- The Johns Loaves Trust
Ajax Engineering IPO: Company Overview
Ajax Engineering Limited is a prominent player in the Indian construction equipment industry, specializing in the manufacturing of concrete equipment. The company offers a wide array of products, services, and solutions designed to meet the needs of the concrete application
sector. Its diverse product portfolio includes various types of machinery tailored for different stages of concrete production and placement.
One of the key contributors to the company’s revenue is its Self-Loading Concrete Mixers (SLCMs). In the fiscal year 2024, approximately 85.13% of Ajax Engineering’s total revenue came from SLCM sales, highlighting the importance of this product in the company’s operations.
In addition to SLCMs, Ajax also manufactures Batching Plants, which are essential for mixing the raw materials used to produce concrete, and Transit Mixers, which transport ready-mix concrete to construction sites. The company also offers Boom Pumps and Concrete Pumps designed for pumping concrete to high elevations or into hard-to-reach areas. The Ajax Engineering Limited IPO valuation reflects the company’s strong market position and robust financial performance, making it an attractive investment opportunity.
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Ajax Engineering Limited IPO: Financial Performance
Ajax Engineering Limited has demonstrated robust financial performance over the past few years. Below is a summary of key financial metrics:
| Particulars (in ₹ Cr) | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | % Change (FY24 – FY23) |
|---|---|---|---|---|
| Assets | 1,348.76 | 1,236.14 | 966.73 | 27.87% |
| Revenue | 794.16 | 1,780.07 | 1,172.57 | 51.81% |
| Profit After Tax | 101.02 | 225.15 | 135.90 | 65.67% |
| Net Worth | 995.84 | 917.96 | 713.80 | 28.60% |
| Reserves and Surplus | 984.40 | 906.52 | 702.36 | 29.07% |
| Total Borrowing | – | 6.23 | 10.14 | -38.56% |
Summary Analysis:
- Assets: Grew by 27.87% YoY, from ₹966.73 crore in FY 2023 to ₹1,236.14 crore in FY 2024, driven by infrastructure and capacity expansion.
- Revenue: Increased by 51.81% YoY, from ₹1,172.57 crore to ₹1,780.07 crore, mainly due to higher SLCM sales and increased demand for other concrete equipment.
- Profit After Tax (PAT): Rose by 65.67%, from ₹135.9 crore to ₹225.15 crore, reflecting better operational efficiency and margins.
- Net Worth: Up by 28.60%, from ₹713.8 crore to ₹917.96 crore, signaling strong equity growth and investor confidence.
Overall, Ajax Engineering’s strong financial growth in FY 2024 has strengthened its market position.
Peer Analysis of Ajax Engineering Limited IPO
To evaluate Ajax Engineering Limited’s market position, it is crucial to compare it with its industry peers. Below is a comparison of key financial metrics:
| Company Name | EPS (Basic) | NAV (per share) (₹) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|
| Ajax Engineering Limited | 19.68 | 80.24 | 31.96 | 19.39% | 7.86 |
| Action Construction Equipment Ltd. | 27.56 | 103.42 | 46.13 | 26.65% | 11.22 |
| BEML Ltd. | 67.66 | 640.55 | 54.24 | 10.56% | 4.97 |
| Escorts Kubota Limited | 96.89 | 780.83 | 35.73 | 11.44% | 3.56 |
Summary Analysis:
- P/E Ratio: Beml has the highest P/E ratio, indicating a premium price for its earnings. While Ajax Engineering has the relatively lowest PE ratio.
- RoNW: Ajax Engineering ranks second in RoNW, with Escorts Kubota and Beml trailing behind.
Ajax Engineering Limited IPO Risk Factors
While investing in the Ajax Engineering Limited IPO presents an attractive opportunity, there are several risks investors should consider:
- Competitive Market – The construction equipment industry is highly competitive, with several domestic and international players offering similar products.
- Cyclical Demand – The demand for concrete machinery depends on the infrastructure and real estate sectors, which are prone to economic cycles.
- Raw Material Price Fluctuations – Any increase in the cost of raw materials such as steel and cement can affect the company’s profitability.
- Dependence on a Few Products – The company derives a significant portion of its revenue from self-loading concrete mixers (SLCMs), making it vulnerable to demand fluctuations in this segment.
- Regulatory Risks – Changes in government policies related to construction and environmental regulations may impact business operations.
- Foreign Exchange Risk – The company imports a portion of its raw materials, exposing it to currency fluctuations.
Despite these risks, Ajax Engineering Limited IPO presents a compelling investment opportunity due to its market leadership, strong financials, and growth potential.
Ajax Engineering Limited IPO Details: Contact Information
For any inquiries regarding the Ajax Engineering Limited IPO, investors can contact the company at:
- Registered and Corporate Office: 253/1, 11th Main Road, 3rd Phase, Peenya Industrial Area, Bengaluru – 560 058, Karnataka, India
- Email: complianceofficer@ajax-engg.com
- Telephone: +91 82 9633 6111
- Website: www.ajax-engg.com
For all the insights on Ajax Engineering Limited IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening a demat account now.
Frequently Asked Questions – FAQs
1. What is the lot size of Ajax Engineering Limited IPO?
The minimum lot size for Ajax Engineering Limited IPO is 23 shares, and investors must invest a minimum of ₹14,467.
2. When will the Ajax Engineering Limited IPO be listed?
The tentative listing date for Ajax Engineering Limited IPO is February 17, 2025.
3. What is the Ajax Engineering Limited IPO price band?
The price band for Ajax Engineering Limited IPO is set between ₹599 and ₹629 per share. This comprehensive guide provides an in-depth analysis of the Ajax Engineering Limited IPO, offering potential investors all the necessary details to make an informed decision.
Reference:
https://www.sebi.gov.in/filings/public-issues/feb-2025/ajax-engineering-ltd-rhp_91647.html
Author: All Content is verified by SMC Global Securities.
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