Ajax Engineering Limited manufactures a wide range of concrete equipment and services across the value chain.
| IPO opens | February 10, 2025 |
| IPO Closes | February 12, 2025 |
| IPO Size (Rs.) | ₹1,269.35 Cr |
| Breakup | OFS only |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹599 to ₹629 per share |
| Minimum Lot | 23 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| BRLM | ICICI Securities, Citigroup Global, JM Financial, Nuvama Wealth, SBI Capital Markets |
| Registrar | MUFG Intime India Pvt Ltd |
About Ajax Engineering Limited
- Ajax Engineering Limited is a prominent concrete equipment manufacturer, offering a range of products and services across the concrete application value chain.
- The company was originally established on July 3, 1992 by three professionals who were working in L&T.
- Ajax’s product portfolio includes:
- Self-loading concrete mixers (SLCMs)3•
- Batching plants
- Transit mixers
- Boom pumps
- Concrete pumps
- Self-propelled boom pumps
- Slip-form pavers
- 3D concrete printers
Financials : Ajax Engineering IPO
| Metric/ Rs Cr. | 66FY25 | 6M2024 | 2024 | 2023 | 2022 |
| Revenue from Operations | 769.99 | 684.86 | 1,741.40 | 1,151.13 | 763.29 |
| Revenue Growth (%) | 12.43% | – | 51.28% | 50.81% | – |
| EBITDA | 119.24 | 99.52 | 275.55 | 170.74 | 90.48 |
| EBITDA Margin (%) | 15.49% | 14.53% | 15.82% | 14.83% | 11.85% |
| Net Profit | 101.02 | 82.94 | 225.15 | 135.9 | 66.21 |
| Net Profit (%) | 12.72% | 11.81% | 12.65% | 11.59% | 8.58% |
| Equity Share Capital | 11.44 | 11.44 | 11.44 | 11.44 | 2.86 |
| Reserves | 984.4 | 788.15 | 906.52 | 702.36 | 575.41 |
| Net Worth | 995.84 | 799.59 | 917.96 | 713.8 | 578.27 |
| Total Borrowings | – | – | 6.23 | 10.14 | 7.16 |
| ROE (%) | 10.14% | 10.37% | 24.53 | 19.04 | 11.45 |
| Debt to Equity | 0.002 | 0.003 | 0.01 | 0.02 | 0.01 |
| Post issue Share Capital | 11.44 | ||||
| FV | 1 | ||||
| IPO price | 629 | ||||
| EPS Fy24 | 7.25 | ||||
| PE | 86.76 | ||||
| EPS Fy25 (annualized) | 17.66 | ||||
| PE (annualized) | 35.62 | ||||
| Market cap in cr. | 7196 | ||||
| Market cap / Sales | 4.13 |
Anchors: Ajax Engineering IPO
Ajax Engineering Ltd’s IPO anchor book raised ₹379.31 crore. The company allocated 60,30,449 equity shares to anchor investors at ₹629 per equity share. Major institutional investors included SBI Mutual Fund, Amundi India, Axis Mutual Fund, IIFL Asset Management, Ashoka Whiteoak ICAV, Franklin Templeton Investment Funds, and Fundpartner Solutions. Other participants were PI Opportunities AIF, HSBC Infrastructure Fund, Carmignac Portfolio, Destinations International Equity Fund, Tocu Europe, Edelweiss Trusteeship, Bcad Fund, and ITI Mutual Fund. Domestic mutual funds received 19.35 lakh shares through eight schemes, which is approximately 32.09% of the total allocation to anchor investors
Salient Points: Ajax Engineering IPO
- Infrastructure development is projected to propel the demand for mechanized concrete equipment in India.
- As of September 30, 2024, Ajax had developed over 141 variants of concrete equipment.
- The company has sold over 29,800 concrete equipment in India in the last 10 years. Their equipment is used in diverse projects such as transportation, irrigation, and infrastructure.
- Ajax markets its products under the brand name ‘Argo’, with drum outputs from 1.0 to 4.8 cubic meters per batch. They also provide spare parts and after-sales services.
- Ajax is a leading manufacturer of SLCMs in India, with a market share of approximately 77%, 75%, 77%, and 86% in terms of units sold during 6 months ended Sept 30, 2024, and FY 2024, 2023, and 2022, respectively
- Peers:
| Companies | Revenue cr. | EBITDA Margins | PAT Margins | P/E | Mcap/sales | D/E Ratio |
| Ajax Engineering Ltd | 1,741.40 | 15.82% | 12.65% | 87 (36) | 4.13 | 0 |
| Action Construction (TTM) | 3,202 | 14.7 % | 12.2 % | 54.1 | 4.69 | 0.08 |
| BEML Ltd (TTM) | 3,883 | 11.7 % | 6.74 % | 49.8 | 3.36 | 0.09 |
- PE FY25 (annualized): 35 x ; PE Fy24 – 86 x
- Company is debt free and has Rs. 400 cr cash.
- I am not applying apply in Ajax Engineering IPO due to current uncertain market condition. Other wise it looks good and seems to have good prospects.
- GMP as per social media is in single digits.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.