Shares of Ajax Engineering are set to make their debut at Dalal Street on Monday and the latest listing contender is likely to have a soft land at the bourses later today, if one goes by the current grey market premium for the counter. The company has been consistently losing its ground in the unofficial market, thanks to the rising volatility.
Ahead of its listing, shares of Ajax Engineering were not commanding a grey market premium (GMP), signaling a dull stock market debut. The GMP stood at Rs 10 apiece on the last day of the bidding, while the premium in the official market stood more than Rs 50 per share before the issue kicked-off for bidding.
The IPO of Ajax Engineering was sold between February 10 and February 12. The company had offered its shares in the price band of Rs 599-629 per share with a lot size of 23 shares. It raised a total of Rs 1,269.35 crore from its IPO, which was entirely an offer-for-sale (OFS) of up to 2,01,80,446 equity shares.
Ajax Engineering attracted moderate investor interest. It is set to debut on the stock markets with a mild premium, said Palak Devadiga, Research Analyst, StoxBox. "We suggest that investors who have received shares consider maintaining their positions with this outlook in mind," she said.
The issue was overall subscribed a decent 6.45 times. The portion for qualified-institutional bidders (QIBs) was subscribed about 14.41 times. The portion for non-institutional investors (NIIs) was booked 6.47 times, while the allocation for retail investors was booked 1.93 times during the three-day bidding. Portion for employees was booked 2.62 times during the process.
Incorporated in July 1992, Bengaluru-based Ajax Engineering manufactures a wide range of concrete equipment and services across the value chain. As of March 31, 2024, the company has developed 110 concrete equipment variants for the value chain and sold over 27,800 units in India in the last ten years.
Brokerage firms were mostly positive on the issue, suggesting to subscribe it for a long-term. Citigroup Global Markets India, ICICI Securities Nuvama Wealth Management, JM Financial and SBI Capital Markets are the book running lead managers of the Ajax Engineering IPO, while Link Intime India is the registrar for the issue. Shares of the company shall list on both BSE and NSE.