Ajax engineering IPO:
Ajax Engineering, which makes self-loading concrete mixer, has raised Rs 379.31 crore from 23 institutional investors before its public issue. The company’s IPO will open on 10 February and will close on 12 February. The company said in the exchange filing that anchor investors have been finalized for 60,30,449 equity shares at a price of Rs 629 per share.
SBI Mutual Fund, Amundi India, Axis Mutual Fund, IIFL Esset Management, Ashoka Whiteok ICAV, Franklin Templeton Investment Funds and Fundpartner Solutions (SuISSE) invested in the company. In addition, Pi Opportunities AIF, HSBC Infrastructure Fund, Carrigory Portfolio, Destinations International Equity Fund, Toku Europe, Edelweiss Trustship, BCAD Fund and ITI Mutual Fund also participated in the anchor book.
Ajax Engineering said, “Out of a total of 60.3 lakh shares allocked to anchor investors, 19.35 lakh shares were allocated to 5 domestic mutual funds, which have applied through a total of 8 schemes.”
What price will be bid in IPO
The price band for bidding in the IPO of Ajax Engineering has been kept at Rs 599-629 per share. The lot size is 23 shares. After the closing of the issue, the allotment will be final on February 13 and the listing of Ajax Engineering in the stock market will be on 17 February. Apart from self-loading concrete mixer, the company also produces stationery pumps, boom pumps, pavers, dumpers, batching plants, transit mixers.
The size of the IPO is Rs 1,269.35 crore. The offer of 2.02 crore equity shares from the current shareholders will be for sale (offs). New shares will not be released. Therefore, after the IPO expenses, the full income of the IPO will go to the shareholders who sell the share.
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Promoters of the company are Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Madhuri Vijay, Prashant Vijay, Rachel Rekha Henson, Savita Christina Alexander, Scene Alexander, Green Heaven Trust, Ohana Trust, Jacob Henson Family Trust and The John’s Laques Trust. Ajax Engineering promoters Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Henson Family Trust and Suzy John have introduced 1.27 crore equity shares for sale in OFS. At the same time, the only investor Kedara Capital Fund II LLP will get out of Ajax Engineering by selling 74.36 lakh shares or 6.5 percent.
Book running lead manager ICICI Securities, Citigroup Global Markets India, JM Financial, Nuwama Wealth Management and SBI Capital Markets are handling public issue. Registrar Link is Inteime India. 50 percent of the IPO is reserved for qualified institutional buyers, 35 percent for retail investors and 15 percent for non -institutional investors.
What indication from gray market
In the gray market, Ajax Engineering stock is trading at a premium of Rs 629 from Rs 629 to Rs 40 or 6.36%. On this basis, the stock can be listed at a price of Rs 669. The gray market is an unauthorized market where shares of a company trades it till its listing.
What should be invested
KR Choksi has recommended “subscribe” to its IPO in its research report on Ajax Engineering. KR Choksi says the company’s valuation is appropriate than its competitions and its financial performance is strong. Revenue 51% CAGR and net profits of Ajax Engineering from FY 2022 to FY 2024 have increased from 84% CAGR. The company offers an attractive investment opportunity with its market share, growth transctory and favorable industry outlook.
The research report by KR Choksi said that in the last ten years till September 30, 2024, the company developed 141 equipment variants in India and sold more than 29,800 units. It has 4 manufacturing plants in Karnataka. Ajax Engineering is the first Indian company to develop in-house slipper paver (2019) and commercialize 3D concrete printing machine (2023). The company has played an important role in India’s concrete industry. In April-September 2024, Ajax Engineering had about 77% market share in the self-loading concrete mixer segment.
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Ajax Engineering’s profit in FY 2023-24 increased by 65.7 percent to Rs 225.1 crore. Revenue increased by 51.3 percent to Rs 1,741.4 crore. During April-September 2024, the profit increased by 21.8 percent to Rs 101 crore and the revenue increased by 12.4 percent to Rs 770 crore.
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