New IPOs are keeping the stock market lively as companies look to raise capital. The Concrete equipment manufacturer Ajax Engineering is set to open its public issue today , February 10. If you are wondering whether it is worth investing in, let’s take a look at key details of this mainboard issue from GMP to the listings.
Ajax Engineering IPO will open its window for bidding, today, February 10, and will close on February 12. The offering is a book-built issue worth Rs 1,269.35 crore.
Furthermore, it is also important to note that this mainboard IPO is entirely an OFS, meaning that the company itself will not receive any funds from the issue. Instead, the existing shareholders are offloading 2.02 crore equity shares through this sale.
Ajax Engineering IPO: GMP
In the grey market, the shares of Ajax Engineering is currently trading at a premium of Rs 49 per share. This suggests a potential listing price of Rs 678, which is 7.79% higher than the upper end of the IPO price band of Rs 629 per share.
However, it is important to not that this is not the actual listing price and may fluctuate based upon the market sentiment.
Ajax Engineering IPO: Subscription status
The Ajax Engineering IPO opened its bidding today and has been subscribed 0.02 times so far. The retail category saw a 0.03 times subscription, while the NII category stood at 0.02 times. The QIB category has yet to receive any bids.
Ajax Engineering IPO: Risk factors
Some of the risk factors mentioned by the company in the DRHP filing include –
“We derive a significant majority of our revenue from the sale of self-loading concrete mixers (85.13% of our revenue from operations for the Financial Year 2024). Any decrease in sales of SLCMs or demand for concrete equipment in India could adversely affect our business, results of operations, financial condition and cash flows.”
“Our business is seasonal in nature and any decrease in sales during certain quarters could have an adverse impact on our financial performance.”
“Fluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on our business, results of operations, financial condition and cash flows.”
Ajax Engineering IPO: Price band
The price band for the IPO set by the company is between the range of Rs 599 to Rs 629 per share.
Ajax Engineering IPO: Major investors and selling shareholders
One of the key investors in Ajax Engineering is Kedaara Capital, a well-known private equity firm with past investments in Vishal Mega Mart and AU Small Finance Bank.
The promoters selling their stakes in this IPO include Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, Susie John, and Kedaara Capital Fund II LLP.
Ajax Engineering IPO: Anchor investment
Prior to the opening of this mainboard issue, the company raised Rs 379.32 crore from anchor investors on February 7.
Ajax Engineering IPO: Lead managers and registrar
The IPO is being managed by a group of top investment banks, including ICICI Securities, Citigroup Global Markets, JM Financial, Nuvama Wealth Management, and SBI Capital Markets. Link Intime has been appointed as the registrar for the issue.
Ajax Engineering IPO: Allotment and listing
After the three-day bidding process, Investors awaiting the allotment can expect finalisation on February 13. Following that, Ajax Engineering’s shares are set to make their market debut on February 17, with listings on both BSE and NSE.
About the company
AJAX Engineering, founded in 1992, is a Bangalore based company that manufactures concreting equipment. It offers a variety of products, including self-loading concrete mixers, concrete batching plants, transit mixers, stationary pumps, boom pumps, self-propelled boom pumps, and slip-form pavers.