Ajax Engineering IPO Details
Ajax Engineering IPO is set to open on February 10, 2025, and will close on February 12, 2025. This will be a Book Built Issue, with the company aiming to raise approximately ₹1,269.35 crores. The offering includes a fresh issue of ₹[.] crores and an offer for sale (OFS) of up to 2,01,80,446 equity shares, each with a face value of ₹1.
The IPO price band is set between ₹599 and ₹629 per share, with 35% reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs). The allotment date is scheduled for February 13, 2025, and the IPO is expected to be listed on the BSE and NSE on February 17, 2025.
Financially, Ajax Engineering has shown strong growth, with revenue rising from ₹1,172.57 crores in 2023 to ₹1,780.07 crores in 2024. The company’s net profit also increased significantly, from ₹135.53 crores in 2023 to ₹225.28 crores in 2024. Given its robust financials, the IPO appears to be a promising long-term investment opportunity.
IPO Overview
| IPO Details | Information |
|---|---|
| IPO Open Date | February 10, 2025 |
| IPO Close Date | February 12, 2025 |
| Face Value | ₹1 per Equity Share |
| IPO Price Band | ₹599 to ₹629 per Share |
| Issue Size | Approx ₹1,269.35 Crores |
| Offer for Sale (OFS) | Approx 2,01,80,446 Equity Shares |
| Issue Type | Book Built Issue |
| IPO Listing | BSE & NSE |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Employee Discount | ₹59.00 per share |
Market Lot Details
The minimum application lot for Ajax Engineering IPO is 23 shares, requiring an investment of ₹14,467. The maximum investment for retail investors is 13 lots (299 shares), amounting to ₹1,88,071.
| Category | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 23 | ₹14,467 |
| Retail Maximum | 13 | 299 | ₹1,88,071 |
| S-HNI Minimum | 14 | 322 | ₹2,02,538 |
| B-HNI Minimum | 70 | 1,610 | ₹10,12,690 |
Bidding Limits
- Retail Investors (RII): Can bid up to ₹2 lakhs at the cut-off price.
- Small HNIs (sNII): Bids between ₹2 lakhs to ₹10 lakhs (No cut-off price).
- Big HNIs (bNII): Bids above ₹10 lakhs (No cut-off price).
- Employees: Can bid up to ₹5 lakhs, with a discount if applying under ₹2 lakhs.
IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | February 10, 2025 |
| IPO Close Date | February 12, 2025 |
| Basis of Allotment | February 13, 2025 |
| Refunds Initiated | February 14, 2025 |
| Credit to Demat Accounts | February 14, 2025 |
| IPO Listing Date | February 17, 2025 |
Company Background
Ajax Engineering, headquartered in Bengaluru, was established as ‘Ajax Fiori Engineering (India) Private Limited’ on July 3, 1992. The company specializes in concrete equipment manufacturing and has sold over 27,800 units across India, Nepal, and Bhutan. A new manufacturing facility in Adinarayanahosahalli is expected to be completed in 2025.
Financial Performance
Ajax Engineering has demonstrated strong revenue growth:
| Year | Revenue (₹ Cr) | Expenses (₹ Cr) | Profit After Tax (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|---|
| 2022 | 771.85 | 681.43 | 66.38 | 735.31 |
| 2023 | 1,172.57 | 989.62 | 135.53 | 966.73 |
| 2024 | 1,780.07 | 1,478.16 | 225.28 | 1,236.14 |
The company’s revenue increased from ₹1,172.57 crores in 2023 to ₹1,780.07 crores in 2024, while net profit surged from ₹135.53 crores to ₹225.28 crores.
Valuation Metrics
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 24.53% |
| Return on Capital Employed (ROCE) | 32.82% |
| EBITDA Margin | 15.82% |
| PAT Margin | 12.65% |
| Debt to Equity Ratio | 0.01 |
| Earnings Per Share (EPS) | ₹19.68 (Basic) |
| Return on Net Worth (RoNW) | 19.39% |
| Net Asset Value (NAV) | ₹80.24 |
Peer Comparison
| Company | EPS | P/E Ratio | RoNW % | NAV | Revenue (₹ Cr) |
|---|---|---|---|---|---|
| Action Construction Equipment Ltd. | 27.56 | 45.38 | 26.65% | 103.42 | 2,990.90 |
| BEML Ltd. | 67.66 | 58.07 | 10.56% | 640.55 | 4,096.56 |
| Escorts Kubota Ltd. | 96.80 | 39.49 | 11.44% | 780.83 | 9,248.21 |
Promoters
Ajax Engineering is backed by multiple promoters, including:
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.
Purpose of the IPO
The IPO is an Offer for Sale (OFS), meaning the company itself will not receive any proceeds. The funds will go to the selling shareholders after deducting offer-related expenses.
Should You Invest?
Ajax Engineering has reported steady revenue and profit growth, with strong margins and low debt. Investors looking for long-term value in the construction and infrastructure sector may find this IPO attractive. However, since the IPO is entirely an OFS, new investors should analyze whether the price band offers value relative to its peers.
Final Thoughts
- Positives: Strong financials, robust margins, and an expanding market presence.
- Risks: No fresh issue, so funds won’t contribute to business expansion.
For investors willing to take a long-term view, Ajax Engineering IPO could be a strong contender in the infrastructure equipment sector.
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