The engineering company engaged in manufacturing construction equipment, including concrete mixers, batching plants, and other machinery for the construction industry is set to launch its Initial Public Offering (IPO) which consists of an entire offer to sale of 2.02 crore shares. The offer will be conducted through a book-building process and is scheduled to open on February 10, 2025, and close on February 12, 2025, and is expected to be listed on the bourses dated 17th February 2025.
Issue Size & Price Band
The total issue size of the IPO is Rs. 1,269.35 Crores which is entirely OFS and the equity shares will be offered in a lot size consisting of 23 equity shares at a price band of Rs. 599 to Rs. 629 per equity share.
Grey Market Premium
The shares of Ajax Engineering’s price in the grey market were trading in the Grey Market at Rs. 637 at a premium of Rs. 8 on February 11th, 2025 which was 1.27 percent over the issue price.
The objective of the Issue
The Company will not receive any proceeds from the offer. The selling shareholders will receive their respective share of the proceeds from the Offer for Sale, after deducting their portion of the offer-related expenses and applicable taxes.
About Ajax Engineering (Overview and Business Model)
Ajax Engineering Limited, incorporated in July 1992, is a leading manufacturer of construction equipment based in India, specializing in concrete mixers, batching plants, and other machinery used in the construction industry. Ajax Engineering offers a wide range of products, including truck-mounted and stationary concrete mixers, self-loading concrete mixers, and batching plants.
The company operates with a business model focused on designing, manufacturing, and delivering high-quality construction machinery to meet the growing demands of infrastructure development. Ajax Engineering serves both domestic and international markets, ensuring that its products are engineered to meet global standards.
Key Financials and Ratios
As of September 2024, the revenue from operations stood at Rs. 769.9, rising by 12.4 percent compared to the previous year’s Rs. 684.8. The EBITDA margin increased from 14.53 percent in Sept 23 to 15.49 percent in Sept 2024, and the PAT margin rose from 11.81 percent to 12.72 percent in the same period.
The company’s ROE stood at 10.14 percent compared to the previous year’s ROE of 10.37 percent, and ROCE declined to 13.84 percent from 13.93 percent during the same period.
Ajax Engineering vs Peers
As per RHP, the Company has mentioned its listed peers are Action Construction Equipment Limited, BEML Limited, and Escorts Kubota Limited.
The Selling Shareholders in this IPO
The promoters selling the shares are Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, Susie John, and Kedaara Capital Fund II LLP.
Written by Sridhar J
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