Ajax Engineering IPO Day 1: GMP, Price, Review, Minimum Investment & More – Should You Apply?
Ajax Engineering IPO: The much-anticipated Ajax Engineering IPO has opened for subscription today, February 10, 2025, and will remain open until February 12, 2025. Investors are keenly watching this offering as the company aims to raise a whopping ₹1,269.35 crore through the public issue.
With a price band of ₹599 to ₹629 per share, Ajax Engineering has already generated ₹379.32 crore from anchor investors. The stock is expected to list on both BSE and NSE, with a likely listing date of February 17, 2025.
Let’s dive into all the key details, including grey market premium (GMP), IPO subscription status, company financials, and expert reviews to help you decide whether to apply or not.
Ajax Engineering IPO Subscription Status (Day 1)
As of 11:12 AM on Day 1, the IPO received a lukewarm response from investors:
- Overall Subscription: 0.07x
- Retail Investor Subscription: 0.11x
- Non-Institutional Investor (NII) Subscription: 0.07x
This early trend suggests that retail investors are showing moderate interest, but institutional investors may step in later.
Key Details of Ajax Engineering IPO
| Details | Information |
|---|---|
| GMP (Grey Market Premium) | ₹56 per share |
| Price Band | ₹599 – ₹629 per share |
| Issue Size | ₹1,269.35 crore |
| Lot Size | 23 shares per lot |
| Minimum Investment | ₹14,467 (for 1 lot) |
| IPO Opening Date | February 10, 2025 |
| IPO Closing Date | February 12, 2025 |
| Allotment Date | February 13, 2025 |
| Listing Date | February 17, 2025 |
| Lead Managers | ICICI Securities, Citigroup Global Markets, JM Financial, Nuvama Wealth Management, SBI Capital Markets |
| Registrar | Link Intime India Private Limited |
Ajax Engineering: Business Overview & Financials
Ajax Engineering is a market leader in Self-Loading Concrete Mixers (SLCMs) and manufactures a wide range of construction machinery. The company holds a 77% market share in the SLCM segment and has a robust dealership network in both domestic and international markets.
Financial Performance (FY22 – FY24)
- Revenue Growth: Increased from ₹763 crore in FY22 to ₹1,741 crore in FY24.
- Profit After Tax (PAT): Grew 132% from ₹6 crore in FY22 to ₹225 crore in FY24.
- September 2025 Quarter PAT: ₹101 crore, indicating continued strong growth.
Ajax Engineering Financial Ratios
| Financial Metric | Value |
|---|---|
| Market Cap | ₹7,196 Cr |
| Stock P/E Ratio | 31.9x |
| Industry P/E Ratio | 38.1x |
| Return on Capital Employed (ROCE) | 36.9% |
| Return on Equity (ROE) | 27.7% |
| Debt-to-Equity Ratio | 0.00 (Debt-Free) |
| Debt | ₹1.89 Cr |
| Dividend Yield | – |
| Piotroski Score | 7.00 |
Ajax Engineering’s financials indicate robust profitability, strong returns, and a debt-free balance sheet, making it an attractive investment option.
Should You Apply for the Ajax Engineering IPO?
Expert Opinions
Several market experts have shared their views on whether investors should subscribe to this IPO:
📌 Palak Devadiga, Research Analyst at StoxBox:
“At a P/E ratio of 32.1x at the upper price band, Ajax Engineering is competitively priced compared to its industry peers. With strong financial performance, growing market demand, and attractive valuations, we recommend a SUBSCRIBE rating for this issue.”
📌 Gaurav Goel, Founder & Director at Fynocrat Technologies:
“Ajax Engineering’s market leadership, 77% SLCM share, and strong financial growth make it a compelling long-term investment. With revenues rising from ₹763 Cr in FY22 to ₹1,741 Cr in FY24 and a 132% PAT increase, the company has strong fundamentals. Investors with a long-term horizon may consider subscribing for potential gains.”
Pros & Cons of Investing in Ajax Engineering IPO
✅ Reasons to Apply
- Strong Market Position: Market leader in SLCM with a 77% share.
- Consistent Revenue Growth: ₹763 Cr in FY22 → ₹1,741 Cr in FY24.
- High Profitability: 132% PAT growth in 2 years.
- Debt-Free Company: A rare advantage in the capital-intensive construction sector.
- Competitive Valuation: P/E ratio (31.9x) is lower than the industry average (38.1x).
❌ Reasons to Avoid
- IPO Subscription is Low on Day 1: Institutional demand remains uncertain.
- Market Volatility: The construction equipment sector is cyclical.
- High Competition: Faces competition from larger global players.
Final Verdict: Apply or Skip?
Based on financial performance, market leadership, and expert opinions, Ajax Engineering IPO looks like a strong investment for long-term investors.
- For long-term investors: ✅ Recommended to Apply
- For short-term listing gains: ❓ May depend on final subscription numbers
- For risk-averse investors: ⚠️ Consider waiting for the listing performance
Conclusion
The Ajax Engineering IPO is off to a moderate start in terms of subscription, but its strong fundamentals, debt-free status, and dominant market share make it a promising bet.
Investors should keep an eye on Day 2 and Day 3 subscription figures before making their final decision. If the demand picks up, this IPO could offer solid returns in the long run.
Are you applying for the Ajax Engineering IPO? Let us know in the comments below!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.