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

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 worth of ₹629. In the meantime, on BSE, it listed at ₹593, down 5.7 p.c from IPO worth.

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 worth was mounted at ₹629 per fairness share.

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

Concerning the IPO

Ajax Engineering IPO was completely an supply on the market of two.02 crore shares with no recent fairness part. Retail traders may apply with a minimal lot measurement 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 worth.

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

The Firm is not going to obtain any proceeds of the Provide. Every of the Promoting Shareholders might 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 International Markets India Non-public Restricted, JM Monetary Restricted, Nuvama Wealth Administration Restricted, SBI Capital Markets Restricted are the e-book operating lead managers of the Ajax Engineering IPO, whereas Hyperlink Intime India Non-public 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 crew includes 79 full-time staff, representing roughly 15.96 p.c of its complete workforce.

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

Assessment

Brokerages have given a Subscribe ranking to the Ajax Engineering IPO, citing sturdy monetary efficiency, market management, and progress 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 robust monetary efficiency. The corporate has delivered a Income/PAT CAGR of 51 p.c/84 p.c from FY22 to FY24, highlighting its spectacular progress trajectory.

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

Reliance Securities: Subscribe

Reliance Securities has additionally really useful 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 enlargement efforts have strengthened its management place.

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