Ajax Engineering IPO: Comprehensive Analysis & Investment Insights
Ajax Engineering is all set to launch its Initial Public Offering (IPO) for public bidding on 10th February 2025. As a book-built issue, it consists of an Offer for Sale (OFS) of 2,01,80,446 shares, amounting to ₹1,269.35 crore. The IPO will be listed on the BSE and NSE, with the tentative listing date on 17th February 2025.
Investors and market analysts are closely monitoring the IPO due to Ajax Engineering’s strong financial performance, promising growth trajectory, and monopoly-like presence in its niche market. This article provides an in-depth analysis of Ajax Engineering IPO, covering crucial aspects such as pricing details, financial performance, market position, risks, and investment potential.
Ajax Engineering IPO Key Details
| IPO Details | Information |
|---|---|
| IPO Open Date | 10th February 2025 |
| IPO Close Date | 12th February 2025 |
| IPO Allotment Date | 13th February 2025 |
| Refund Initiation | 14th February 2025 |
| Listing Date | 17th February 2025 |
| Issue Size | 2,01,80,446 shares (₹1,269.35 crore) |
| Face Value | ₹1 per share |
| Lot Size | 23 shares |
| Price Band | ₹599 – ₹629 per share |
| Issue Type | Book Built Issue (OFS) |
| Listing At | BSE & NSE |
IPO Subscription Structure
| Investor Category | Reservation |
|---|---|
| QIB (Qualified Institutional Buyers) | <50% of total issue |
| Retail Investors | >35% of total issue |
| NII (Non-Institutional Investors) | >15% of total issue |
Grey Market Premium (GMP) and Listing Expectations
Grey Market Premium (GMP) reflects the premium at which the IPO is trading in the unofficial market before its listing. As of 7th February 2025, the GMP stands at ₹57, suggesting an estimated listing price of ₹686 per share, marking an estimated listing gain of 9.06%.
GMP Trends
| Date | GMP (₹) | Estimated Listing Price (₹) | Estimated Listing Gains (%) |
|---|---|---|---|
| 07-02-2025 | 57 | 686 | 9.06% |
| 06-02-2025 | 57 | 686 | 9.06% |
| 05-02-2025 | 58 | 687 | 9.22% |
Financial Performance of Ajax Engineering
Assessing Ajax Engineering’s financial health is critical before making an investment decision. The company has demonstrated consistent revenue and profit growth, making it an attractive option for investors.
Revenue and Profit Growth
| Financial Year | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Growth (%) |
|---|---|---|---|
| FY 2023-24 | 1,780.07 | 225.15 | 65.67% |
| FY 2022-23 | 1,172.57 | 135.90 | – |
| FY 2021-22 | 771.85 | 66.21 | – |
Ajax Engineering has posted 51.80% growth in revenue and 65.67% growth in PAT in FY2023-24, indicating a strong financial position and growth potential.
Technical Indicators
| Indicator | Value |
|---|---|
| P/E Ratio | 31.96 |
| P/B Ratio | 7.84 |
| EPS | 19.68 |
| ROE | 24.53% |
| ROCE | 32.82% |
| Market Cap | ₹7,196.19 crore |
Peer Comparison
| Company | Revenue (₹ Cr) | PE Ratio | EPS (₹) | ROE (%) |
|---|---|---|---|---|
| Ajax Engineering | 1,780.07 | 31.96 | 19.68 | 24.53% |
| Escorts Kubota | 2,090.10 | 31.56 | 103.84 | 2.91% |
| BEML Ltd. | 1,510.29 | 52.21 | 62.86 | 0.77% |
Ajax Engineering has a strong revenue base and competitive P/E ratio, making it a promising investment choice compared to industry peers.
IPO Bidding Requirements
| Investor Category | Minimum Lots | Shares | Investment Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 23 | 14,467 |
| Retail (Max) | 13 | 299 | 1,88,071 |
| S-HNI (Min) | 14 | 322 | 2,02,538 |
| B-HNI (Min) | 70 | 1,610 | 10,12,690 |
Objectives of the IPO
The IPO is purely an Offer for Sale (OFS), meaning existing shareholders will receive proceeds from the issue, and the company itself will not receive any funds. The sale aims to allow early investors to exit and create liquidity in the stock.
Should You Invest in Ajax Engineering IPO?
Pros of Investing
- Market Leader: Dominates the Self-Loading Concrete Mixers (SLCM) market in India.
- Strong Financials: Consistent revenue and profit growth.
- Robust Industry Growth: The construction and infrastructure sector is expanding rapidly.
- GMP Trends: Positive grey market premium suggests strong listing gains.
Risks & Concerns
- High Import Costs: Fluctuations in raw material prices can impact margins.
- Regional Challenges: Dependency on Indian infrastructure growth.
- OFS Structure: Since it’s an Offer for Sale, no fresh capital will go into business expansion.
How to Apply for Ajax Engineering IPO
Steps to Apply
- Research thoroughly – Check GMP trends, subscription status, and company fundamentals.
- Open a Demat Account – Use any SEBI-registered brokerage platform.
- Place a Bid – Choose lot size and apply via UPI mandate or ASBA.
- Monitor Allotment Status – Check on BSE or the registrar’s website.
Conclusion
Ajax Engineering IPO presents an attractive investment opportunity with strong financial growth, industry leadership, and robust demand for infrastructure machinery. With positive GMP trends and promising fundamentals, the IPO is expected to generate strong listing gains. However, potential investors should weigh the OFS structure and sector risks before applying.
With listing expected on 17th February 2025, investors should stay informed and make calculated investment decisions.
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