Concrete equipment manufacturer Ajax Engineering is set to open its Rs 1,269.35 crore IPO on February 10. A mainboard issue, the offering will be open for bidding until February 12.The offering is entirely an OFS of 2.02 crore equity shares by existing shareholders, meaning the company will not receive any proceeds from the issue.
Ajax Engineering IPO: Price band and investment details
Kedaara Capital is a key investor in the company. Kedaara Capita is also known for its investment in Vishal Mega Mart and AU SMall Finance Bank.
The Ajax Engineering IPO price band is set between the range of Rs 599- 629 per share. Investors can bid for a minimum lot of 23 shares.
Retail investors will need to invest Rs 14,467 for one lot. Similarly, Small Non-Institutional Investors (sNII) will have to invest Rs 2,02,538 for 14 lots, which is 322 shares. Big Non-Institutional Investors (bNII) will need to invest Rs 10,12,690 for 70 lots, or 1,610 shares.
Ajax Engineering IPO: GMP
Ahead of its launch, Ajax Engineering IPO’s GMP is Rs 45, suggesting a potential listing price of Rs 674 per share. This implies an estimated 7.15% premium over the upper end of the IPO price band at Rs 629 per share.
However, this is not the actual listing price and may fluctuate based on the market sentiment.
Ajax Engineering IPO: Book running lead managers & registrar
The IPO is backed by prominent investment firms. The book-running lead managers include ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets. The registrar for the issue is Link Intime.
Ajax Engineering IPO: Risk factors
As per the DRHP filed by the company, some of the risk factors mentioned by the company in the disclosure 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: Allotment and listing
After the bidding process, the allotment of shares of this mainboard issue is scheduled on February 13. Moreover, the tentative date of listing this issue on the Indian bourses BSE and NSE is set on February 17.
About the company
Founded in July 1992, Ajax Engineering is a manufacturer of concrete equipment, and offers a wide range of products and services across the construction value chain.
As of September 30, 2024, the company has developed 141 different concrete equipment variants and has sold over 29,800 units in India over the past decade.
