Weak Debut! Ajax Engineering shares listing at ₹576 on NSE, a reduction of 8.43% from IPO value

Ajax Engineering IPO itemizing: Ajax Engineering shares make a weak debut on Monday, February 17, itemizing at ₹576 on NSE, a reduction of 8.43 p.c versus its IPO value of ₹629. In the meantime, on BSE, it listed at ₹593, down 5.7 p.c from IPO value.

Ajax Engineering s preliminary public providing (IPO), valued at ₹1,269.35 crore, was open for subscription from February 10 to February 12. The IPO value was mounted at ₹629 per fairness share.

Following the three days of bidding, Ajax Engineering IPO closed with sturdy demand, garnering 6.06 instances bids. The IPO obtained bids for 8.57 crore shares towards 1.41 crore shares on supply. The retail investor section was booked 1.94 instances, whereas the non-institutional buyers (NII) class was subscribed 6.46 instances. Furthermore, the Certified Institutional Consumers quota was bid 13.04 instances within the 3 days of bidding.

Concerning the IPO

Ajax Engineering IPO was solely an supply on the market of two.02 crore shares with no contemporary fairness part. Retail buyers may apply with a minimal lot dimension of 23 shares, requiring a minimal funding of ₹13,777.

The problem features a reservation of as much as 78947 shares for workers provided at a reduction of ₹59.00 to the problem value.

The IPO raised ₹379.32 crore from anchor buyers on February 7, 2025.

The Firm won’t obtain any proceeds of the Provide. Every of the Promoting Shareholders will likely be entitled to the respective proportion of proceeds of the Provide for Sale after deducting its portion of the Provide-related bills and the related taxes thereon.

ICICI Securities Restricted, Citigroup World Markets India Personal Restricted, JM Monetary Restricted, Nuvama Wealth Administration Restricted, SBI Capital Markets Restricted are the e-book working lead managers of the Ajax Engineering IPO, whereas Hyperlink Intime India Personal Ltd is the registrar for the problem.

Concerning the Firm

Integrated in July 1992, Ajax Engineering Restricted makes a speciality of manufacturing a various vary of concrete tools and providers throughout the worth chain. As of September 30, 2024, the corporate has developed 141 concrete tools variants and offered over 29,800 models in India over the previous decade. Its design, engineering, and growth staff includes 79 full-time workers, representing roughly 15.96 p.c of its whole workforce.

The corporate operates 4 manufacturing amenities in Karnataka, situated in Obadenahalli, Gowribidanur, and Bashettihalli, with every specializing in numerous product classes, notably the Obadenahalli facility.

Evaluate

Brokerages have given a Subscribe ranking to the Ajax Engineering IPO, citing sturdy monetary efficiency, market management, and development potential.

KR Choksey: Subscribe

Brokerage agency KR Choksey has assigned a Subscribe ranking to the Ajax Engineering IPO, citing its cheap valuation in comparison with trade friends and powerful monetary efficiency. The corporate has delivered a Income/PAT CAGR of 51 p.c/84 p.c from FY22 to FY24, highlighting its spectacular development trajectory.

“With its dominant market share, sustained development, and a positive trade outlook, Ajax Engineering presents a compelling funding alternative. Therefore, we assign a ‘Subscribe’ ranking,” KR Choksey acknowledged in its analysis report.

Reliance Securities: Subscribe

Reliance Securities has additionally really helpful subscribing to the IPO, emphasizing Ajax Engineering’s first-mover benefit in introducing Self-Loading Concrete Mixers (SLCMs) in India. Analysts famous that the corporate’s high-quality merchandise, sturdy after-sales service, and market growth efforts have strengthened its management place.

“AEL has enhanced its capabilities, expanded its market share in non-SLCM merchandise, and is rising its presence in abroad markets via exports whereas additionally exploring inorganic development alternatives. With a deal with capital effectivity, sturdy return ratios, and an skilled administration staff, the corporate is well-positioned for future development,” Reliance Securities acknowledged.