Ajax Engineering IPO: GMP, Date, Price & Details

Ajax Engineering IPO - Complete Overview 

Ajax Engineering IPO a Mainboard IPO is a book-built issue of Rs.1,269.35 Cr (2.02 Cr Shares) by Ajax Engineering Limited incorporated in July 1992. The company is the manufacturer of a vast stretch of concrete-making and associated equipment across the value chain.

As of September 30, 2024, 141 variants of concrete equipment have been developed by the company for the value chain in which over 29,800 units were sold in India within the past 1 decade. It has four facilities in the state of Karnataka, located at Gowribidanur, Bashettihalli, and Obadenahalli working on different products.

It has 51 dealerships throughout 23 states in India, giving it a total of 114 touchpoints. 51 headquarters and branches (34 are service centers too). 

Product Portfolio:

1. Self-loading concrete mixers

2. Batching plants

3. Transit mixers

4. Boom pumps

5. Concrete pumps

6. Self-propelled boom pumps

7. Slipform pavers

8. 3D concrete printers

This new IPO is to be launched on 10 Feb 2025, and the initial public offering of this upcoming IPO will end on 12 Feb 2025.

 

Ajax Engineering Limited IPO Details

This Rs.1,269.35 Cr Ajax Engineering Limited IPO comprises a wholly offer for sale of 2.02 crore Shares. 

The IPO listing date is on February 17, 2025. Ajax Engineering IPO price is Rs.599 to Rs.629. 

The GMP of IPOs can be viewed on our current IPO GMP page, where you can get the IPO GMP live of open IPOs.

If you want to apply for the IPO, Click to open a demat account and apply for the IPO.

Company Financial

(Amount in million)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Revenue Breakdown

(Amount in millions)

(Source RHP)

 

The Objective of the Issue

The offer's proceeds will not be given to the company. Following the deduction of their respective share of offer-related costs and applicable taxes, each selling shareholder will be entitled to their share of the offer's proceeds.

 

Peers of Ajax Engineering Limited

 

Evaluation

The IPO price is between Rs.599 to Rs.629 per Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.19.68 from the last year, the resulting P/E ratio is 32x. 

Considering the weighted EPS of Rs.14.77 for the last three years, the P/E ratio is 42.56x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 45.36x.

In simple words, the P/E ratio of this IPO (32x), compared with the industry’s average P/E of 45.36x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths   

• Giant market leader in an extensive SLCM and fast-growing market.

• The most prominent concrete equipment company with the widest portfolio of concrete equipment, services, and solutions across the concrete applications value chain.

• Well-established in design, development, and engineering.

• The manufacturing process and assembly are strongly driven by technology with a robust supply chain.

• With a large dealer network covering an even wider reach.

 

IPO’s Weaknesses 

• The sale of self-loading concrete mixers is responsible for the majority of their revenue such that the firm made 85.13% of their revenue from operations in the financial year 2024. It is noted that the ongoing business SLCMs and sales of concrete equipment in India are low, which may have serious ramifications on its cash flow.”

• Its operations are subject to seasonality and thus, any decreases in sales across specific quarters may dent our financial performance.

• Volatility in prices of materials, failure in the timely provision of the materials, and other factors such as these could adversely affect the profitability of our business and its financial condition.

 

 

Ajax Engineering IPO GMP

GMP of IPO of Ajax Engineering is Rs.35 as of 05 Feb 2025. 

Ajax Engineering IPO Timetable (Tentative)

The IPO date is from 10 Feb to 12 Feb, with IPO allotment on 13 February, and refund initiation on 14 February 2025. The IPO listing date is 17 February 2025.

 

IPO Other Details 

The IPO with a face value of Rs.1 per Share, offers an IPO size of 2,01,80,446 Shares (Rs.1,269.35 Cr) and it will be listed at BSE and NSE.

 

Ajax Engineering IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (23 Shares) amounting to Rs.14,467 and 13 Lots (299 Shares) amounting to Rs.1,88,071 respectively, while for HNI investors, the minimum Lot is 14 (322 Shares) amounting to Rs.2,02,538.

IPO Reservation

Promoters and Management of Ajax Engineering Ltd. 

• 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.

IPO Lead Managers

• ICICI Securities Limited

• Citigroup Global Markets India Private Limited

• JM Financial Limited

• Nuvama Wealth Management Limited

• SBI Capital Markets Limited.
  
  

Dividend Policy

A dividend of Rs.2.17 per equity share has been paid by the company in FY24 and for the period ended on 30 Sep 2024.

 

Conclusion

The Ajax Engineering IPO is an opportunity in the engineering industry. Though revenues primarily come from self-loading concrete mixers, the company is backed by strong technology and a huge dealer network. While certain operational and seasonal risks exist, the IPO is relatively attractive when compared with other players in the industry.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

 

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