by Ajax Engineering, a prominent player in the concrete equipment manufacturing industry, has announced its Initial Public Offering (IPO), opening for subscription from February 10 to 12, 2025. This IPO presents an opportunity for investors to participate in the growth trajectory of a company that has established itself as a leader in its sector.
About Ajax Engineering 🏗️ Established in 1992 and headquartered in Bangalore, India, Ajax Engineering has become a global leader in self-loading concrete mixers. The company offers a comprehensive range of concreting equipment, including batching plants, transit mixers, boom pumps, and slip-form pavers. Over the past decade, Ajax has sold over 27,800 concrete equipment units in India and developed 110 different types of equipment across the value chain.
Management Team 👥 Ajax Engineering’s success is driven by a seasoned management team with extensive experience in the construction and engineering sector. Their strategic vision and commitment to innovation have been pivotal in driving the company’s growth and maintaining its competitive edge.
*Financial Highlights 💹
In the fiscal year ending March 31, 2024, Ajax Engineering report:
- *Revenue: ₹1,741 crore
- **Profit After Tax (PAT)*: ₹225 crore
The company’s market capitalization is estimated at ₹7,200 crore at the upper end of the price band.
IPO Details 📈
- *Issue Type: Offer for Sale (OFS) of 2.01 crore equity shares by existing shareholders.
- *Price Band: ₹599 to ₹629 per share.
- *Lot Size: 23 shares per lot.
- *Minimum Investment: ₹14,467 for one lot.
- *Issue Size: ₹1,269 crore.
- *Bidding Period: February 10 to 12, 2025.
- *Listing Date: Expected on February 17, 2025.
The IPO is entirely an OFS, meaning all proceeds will go to the selling shareholders, with no fresh equity being issued by the company.
Application Process 📝
Investors can apply for the Ajax Engineering IPO through the following steps:
- Demat Account: Ensure you have an active Demat account. If you do not have DMAT, You can open Free DMAT A/c by Clicking here.
- Broker Platform: Log in to your trading platform or visit your broker’s website.
- Select IPO: Navigate to the IPO section and select ‘Ajax Engineering IPO’.
- Place Bid: Enter the number of lots you wish to apply for and your bid price within the specified range.
- UPI Mandate: If applying online, approve the UPI mandate request to block the funds in your bank account.
- Confirmation: Submit your application and ensure you receive a confirmation message.
FAQs for Investors ❓
- What is the Grey Market Premium (GMP) for Ajax Engineering IPO?
- As of the opening day, the GMP is approximately ₹52, indicating a potential listing price of ₹681 per share.
- What are the key strengths of Ajax Engineering?
- Ajax is a market leader in self-loading concrete mixers, offers a diverse product portfolio, and has an extensive dealer network across India.
- Are there any risks associated with this IPO?
- The concrete equipment industry is cyclical, and fluctuations in demand or raw material prices could impact the company’s performance.
- How will the IPO proceeds be utilized?
- Since the IPO is an OFS, all proceeds will go to the selling shareholders, and the company will not receive any funds from the issue.
- When will the allotment be finalized?
- The basis of allotment is expected to be finalized on February 13, 2025.
Disclaimer ⚠️
Investing in IPOs involves inherent risks, including market volatility and the potential for loss. This article is for informational purposes only and should not be construed as financial advice. Prospective investors are advised to consult with certified financial advisors and thoroughly review the official prospectus before making investment decisions.
Additional Information ℹ️
Ajax Engineering has a robust dealer-led distribution and service model, comprising 51 dealerships across 23 states in India, providing customer access through 114 touchpoints. The company is also focused on growing its export business, with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa.
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