Ajax Engineering IPO Day 2: Issue booked 49%; should you subscribe?

Ajax Engineering's initial public offering (IPO) received 49 per cent bids on Tuesday, February 11, 2025, the second day of the bidding process. Investors applied for 68,91,237 shares against 1,41,49,997 shares on offer.

Category-wise, the retail individual investors (RII) portion saw 52 per cent subscription, while non-institutional investors (NIIs), also known as HNIs, placed bids for 18,49,039 shares or 61 per cent. Meanwhile, qualified institutional buyers (QIBs) have subscribed for 13,17,762 shares or 33 per cent. The portion reserved for employees was subscribed 1.19 times or 93,840 shares.

Ajax Engineering IPO: Day 1 subscription 

On the first-day share sale process, the issue garnered a 28 per cent subscription. Bids were placed for 39,45,489 shares against the available 1,41,49,997 shares. RIIs segment saw a 29 per cent subscription, HNIs subscribed 28 per cent, and QIBs accounted for 26 per cent of their allotted quota.

The Rs 1,269.35 crore IPO is an offer for sale (OFS) of 2.02 crore shares and will be concluded on Wednesday, February 12, with its allotment expected to be finalised on February 13. Investors will receive shares in their demat accounts the same day, and the stock is scheduled to list on exchanges on February 17.

Ajax Engineering IPO: Should you subscribe? 

Several domestic brokerages' analysts have recommended subscribing to the issue

Hem Securities' analysts have a 'subscribe' rating due to the company's financials and leadership in the market. Ajax Engineering is the market leader in a large and fast-growing SLCM market with an approximately 77 per cent, and 75 per cent market share in the SLCM market in India in terms of the number of SLCMs sold during the six months ended September 30, 2024, and financial Years 2024, respectively, according to the brokerage.

"Company is a leading concrete equipment company with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain and over 141 concrete equipment variants," it said.

Another brokerage KRChoksey has also assigned a 'subscribe' rating because of factors like dominant market share, growth trajectory, and favorable industry outlook. Based on FY22 to FY24 earnings, the company is at a reasonable price compared to its industry competitors, according to the brokerage analysts.

Rajan Shinde of Mehta Equities has advised to subscribing the IPO with a long-term horizon. He believes that the company's valuations are reasonably priced compared to the other peers.

Ajax Engineering IPO: Price band, lot size, & other details

The IPO is priced in the range of Rs 599-629 per share, with a minimum lot size of 23 shares. Retail investors need to invest a minimum of Rs 14,467. Small NIIs require a minimum of 14 lots (322 shares) at Rs 2,02,538, while large NIIs must apply for at least 70 lots (1,610 shares) amounting to Rs 10,12,690.

Registrar and BRLMs

The official registrar of the IPO is MUFG Intime India Pvt Ltd, formerly known as Link Intime India Pvt Ltd. The book running lead managers of the IPO are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.

About Ajax Engineering

With a diverse product lineup that includes batching plants, boom pumps, transit mixers, and 3D concrete printers, Ajax Engineering stands out as a key player in the sector. Its focus on innovation from load cell-enabled SLCMs to patented self-propelled boom pumps and slip-form pavers—gives it a technological edge.

The company also benefits from cost-efficient manufacturing and a well-established dealer network spanning 51 dealerships across 23 states in India and 25 global partnerships.