Ajax Engineering IPO to open on February 10; Check price band, lot size, GMP & more

The initial public offering (IPO) of Ajax Engineering shall open for bidding on Monday, February 10. The company shall be offering its share in the range of Rs 599-629 apiece. Investors can bid for a minimum of 23 equity shares and its multiples thereafter, until Wednesday, February 12, when the issue closes for bidding.

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.

The IPO of Ajax Engineering is entirely an offer-for-sale (OFS) of up to 2,01,80,446 shares amounting to Rs 1,269.35 crore at the upper end of the price band. The company will not receive any proceeds from the issue. Anchor book for the issue shall open on Friday, February 7. Ahead of opening, the IPO of Ajax Engineering was not commanding any grey market premium (GMP).

The design, engineering and development team of Ajax Engineering has 76 full-time employees, about 17.16 per cent of the total workforce, as of March 31, 2024 The company has four facilities in Karnataka, located at Obadenahalli, Gowribidanur, and Bashettihalli, each specializing in different products, especially the Obadenahalli facility.

Ajax Engineering has 51 dealerships across 23 states in India, providing 114 touchpoints, including 51 headquarters and 63 branches, 34 of which also serve as service centers, as of March 31, 2024. The company has established 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa.

Ajax Engineering has reserved 78,947 equity shares for its eligible employees, who will get a discount of Rs 59 per share in the IPO. The company has reserved 50 per cent of the shares for qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent for the allocations. Retail investors shall get 35 per cent of the reservation in the issue.

For the six months ended on September 30, 2024, Ajax Engineering clocked net profit of Rs 101.02 crore with a revenue of Rs 769.99 crore. The company reported a net profit of Rs 225.15 crore with a total revenue of Rs 1,780.07 crore for the Financial year ended on March 31, 2024. The company shall command a total market capitalization close to Rs 7,200 crore.

ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management 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 on Monday, February 17.