Ajax Engineering IPO is a book-built issue valued at ₹1,269.35 crore. It is a 100% offer for sale issue of 2.02 crore shares. The IPO opened for subscription on February 10, 2025, and is closing soon on February 12, 2025. The allotment is expected to be finalised on February 13, 2025, with a tentative listing date of February 17, 2025, on BSE and NSE.
The IPO price is set at a price band of ₹599 - ₹629 per share. Retail investors need a minimum investment of ₹14,467 for one lot of 23 shares, while HNI investors must invest in at least 70 lots, amounting to ₹10,12,690.
ICICI Securities Limited, Citigroup Global Markets India Private Limited, Jm Financial Limited, Nuvama Wealth Management Limited and SBI Capital Markets Limited are the book-running lead managers for this issue, while MUFG Intime India Private Limited (formerly Link Intime India Private Limited) serves as the registrar.
For detailed financial and operational information, investors can refer to the Ajax Engineering IPO RHP. This IPO presents an opportunity to invest in a growing enterprise listed on BSE and NSE.
Industry Outlook
- The Indian construction equipment industry is experiencing steady growth, driven by government infrastructure projects, urbanisation, and private sector investments. Increased budget allocations for roads, railways, and smart cities are expected to fuel demand for advanced machinery.
- The concrete equipment market, particularly self-loading concrete mixers, batching plants, and transit mixers, is witnessing higher adoption due to cost efficiency, automation, and productivity improvements. Companies investing in technological advancements and sustainable solutions are likely to benefit from this trend.
Ajax Engineering IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Funds will be allocated to expand and upgrade manufacturing facilities, improving efficiency and increasing production capacity.
- A portion of the proceeds will be utilised to repay outstanding debt, reduce financial liabilities, and strengthen the company’s balance sheet.
- Investment will be made in research and development to enhance product innovation and maintain a competitive edge in the market.
- Funds will be used to meet working capital requirements, ensuring smooth day-to-day operations and better cash flow management.
- The company plans to invest in automation and advanced technology to improve productivity and reduce operational costs.
About Ajax Engineering Limited
Ajax Engineering Limited was originally incorporated as Ajax Fiori Engineering (India) Private Limited on July 3, 1992, and later merged with Ajax Construtech Private Limited, leading to its renaming as Ajax Engineering Private Limited in 2019. It was converted into a public limited company on September 23, 2024.
The company is headquartered in Bengaluru, Karnataka, and is a leading manufacturer of concrete construction equipment, catering to infrastructure projects across India.
Ajax Engineering specialises in self-loading concrete mixers, batching plants, transit mixers, and slip-form pavers, serving industries such as real estate, road construction, and irrigation.
With a strong focus on innovation and automation, the company has established advanced manufacturing facilities and follows stringent quality control measures to ensure product reliability and efficiency.
Operating on a B2B model, the company supplies equipment to contractors, infrastructure developers, and government projects, ensuring timely delivery and competitive pricing.
Ajax Engineering has leveraged government initiatives supporting infrastructure development, which has contributed to its growth and expansion.
How To Check the Allotment Status of the Ajax Engineering IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Ajax Engineering IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Ajax Engineering IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Ajax Engineering IPO
Registered office: 253/1, 11th Main Road, 3rd Phase, Peenya Industrial Area, Bengaluru - 560058, Karnataka, India
Phone: +91 82 9633 6111
E-mail: complianceofficer@ajax-engg.com
Ajax Engineering IPO Category Reservation
|
Application Category |
Maximum Bidding Limits |
Bidding at Cut-off Price Allowed |
|
Only RII |
Up to ₹2 lakh |
Yes |
|
Only NII |
₹2 lakh to ₹10 lakh |
No |
|
Only bNII |
₹10 lakh to NII Reservation Portion |
No |
|
Only employee |
Up to ₹5 lakh |
Yes |
|
Employee + RII/NII |
|
Yes for shareholder/R |
Ajax Engineering IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
23 |
₹14,467 |
|
Retail (Max) |
13 |
299 |
₹1,88,071 |
|
S-HNI (Min) |
14 |
322 |
₹2,02,538 |
|
S-HNI (Max) |
69 |
1,587 |
₹9,98,223 |
|
B-HNI (Min) |
70 |
1,610 |
₹10,12,690 |
Ajax Engineering IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB |
Not more than 50% of the Net Offer |
|
Retail |
Not less than 35% of the Net Offer |
|
NII (HNI) |
Not more than 15% of the Net Offer |
Ajax Engineering IPO Promoter Holding
The Promoters of the company are 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 and The Johns Loaves Trust.
|
Share Holding Pre-Issue |
93.50% |
|
Share Holding Post Issue |
- |
Key Performance Indicators for Ajax Engineering IPO
As of March 31, 2024, the market capitalisation of Ajax Engineering's IPO is ₹230.92 crore. Here are the KPIs of Ajax Engineering:
|
KPI |
Value |
|
RoE (%) |
24.53 |
|
RoCE (%) |
32.82 |
|
EBITDA (₹ million) |
2,755.46 |
|
PAT (₹ Lakh) |
2,251.49 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
19.68 |
17.66 |
|
P/E (x) |
31.96 |
35.62 |
Note: The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2024, that is available in RHP.
The post-issue EPS is calculated based on the post-issue shareholding and annualised FY earnings of September 30, 2024, that are available in RHP.
Ajax Engineering IPO Prospectus
Ajax Engineering IPO Registrar and Lead Managers
Ajax Engineering IPO Lead Managers
- ICICI Securities Limited, Citigroup Global Markets India Private Limited, Jm Financial Limited, Nuvama Wealth Management Limited and SBI Capital Markets Limited
Registrar for Ajax Engineering IPO
MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
- Contact Number: +91 81 0811 4949
- Email Address:ajaxengineering.ipo@linkintime.co.in
Ajax EngineeringIPO Registrar
Financial Performance of Ajax Engineering Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from operations (in ₹ million) | 17,414.03 | 11,511.28 |
| PAT (in ₹ million) | 2,251.49 | 1,359.04 |
| EBITDA (in ₹ million) | 2,755.46 | 1,707.41 |
| ROE (%) | 24.53 | 19.04 |
| ROCE (%) | 32.82 | 25.31 |
| FCFF/EBITDA (%) | 67.38 | 98.41 |
| ROA (%) | 18.21 | 14.06 |
Know before investing
Strengths
8Ajax Engineering has a strong market presence in the construction equipment industry, backed by decades of operational experience.
The company offers a diverse range of concrete equipment, including self-loading concrete mixers, batching plants, transit mixers, and slip-form pavers, catering to infrastructure and real estate projects.
Advanced manufacturing facilities equipped with automation and quality control systems ensure high efficiency and consistent product standards.
A well-established B2B model enables partnerships with contractors, government projects, and infrastructure developers, ensuring a steady revenue stream.
India’s growing infrastructure sector, driven by government initiatives like Smart Cities, Bharatmala, and PM Awas Yojana, presents significant expansion opportunities.
Increasing urbanisation and investment in real estate and road construction are expected to drive higher demand for concrete equipment.
The company plans to expand its production capacity and invest in R&D to introduce technologically advanced and energy-efficient solutions.
With the IPO proceeds, Ajax Engineering aims to strengthen its financial position, reduce debt, and fund future growth, enhancing its market competitiveness.
Risks
8The company operates in a highly competitive construction equipment industry, facing competition from both domestic and international players, which could impact market share and profitability.
Dependence on government infrastructure projects means that any slowdown in public sector investments or policy changes could negatively affect demand for its products.
Fluctuations in raw material prices, especially steel and other essential components may increase production costs and reduce profit margins.
Supply chain disruptions, including delays in procurement of parts and logistics challenges, could impact production schedules and delivery timelines.
Economic downturns or a decline in infrastructure spending could lead to reduced order volumes and revenue fluctuations.
Regulatory and environmental compliance requirements in the manufacturing sector may lead to additional costs and operational challenges.
Any failure in maintaining product quality, safety standards, or after-sales service could impact the company’s reputation and customer retention.
The company’s success depends on the effective utilisation of IPO proceeds, and any inefficiencies in execution could affect growth plans and investor confidence.
Ajax Engineering Limited Peer Details Comparison
| Company Name | EBITDA Margin (%) | PAT Margin (%) | Return on Equity (%) | Return on Capital Employed (%) |
|---|---|---|---|---|
| Ajax Engineering Limited | 15.82 | 12.65 | 24.53 | 32.82 |
| Escorts Kubota Limited | 12.25 | 9.66 | 11.47 | 15.02 |
| BEML Limited | 10.91 | 6.88 | 10.56 | 15.36 |
| Action Construction Equipment Limited | 13.84 | 10.97 | 26.69 | 37.03 |
