Ajax Engineering Limited IPO 2025: Should You Subscribe?

Ajax Engineering Limited, a leading player in the concrete equipment industry, is launching its ₹1,269.35 crore Initial Public Offering (IPO) from 10th February to 12th February 2025. With a strong market presence and an extensive distribution network, Ajax Engineering offers a unique investment opportunity for those looking to benefit from India’s growing infrastructure and construction sector.

Here are the 10 key things you should know before investing in the Ajax Engineering Limited IPO:

What makes Ajax Engineering Limited a good opportunity?

Ajax Engineering Limited is a market leader in self-loading concrete mixers (SLCMs) and provides a comprehensive range of concrete equipment, services, and solutions across the concrete application value chain.

Product Portfolio: The company has developed 141 concrete equipment variants and sold over 29,800 units in India in the last decade.

Strong Dealer Network: 51 dealerships across 23 states in India, with 114 touchpoints including sales and service centres.

Global Presence: Established 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa.

Financial Strength: Revenue of ₹1,780.07 crore in FY24, growing consistently over the years.

With increasing infrastructure development in India, Ajax Engineering is well-positioned to benefit from the rising demand for construction equipment.

What are the IPO dates, price band, and issue size?

Here are the key details of the IPO:

IPO dates: February 10th – February 12th, 2025

Listing date: February 17th, 2025

Price band: ₹599 – ₹629 per share

Total issue size: ₹1,269.35 Cr

Face value: ₹1 per share

Listing Exchange: BSE, NSE

Lot Size: 23 Shares

Promoters: Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Madhuri Vijay, Prashanth Vijay, Rachel Rekha Hansen, Savitha Christeena Alexander, Sean Alexander, Green Haven Trust, Ohana Trust, Jacob Hansen Family Trust, and The Johns Loaves Trust.

What is the minimum investment for the IPO?

The minimum investment required to apply for the Ajax Engineering Limited IPO is ₹13,777, based on the lot size of 23 shares at the lower price band of ₹599 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,467 based on the lot size of 23 shares at ₹629 per share.

What does the company do?

Founded in 1992, Ajax Engineering Limited is a leading manufacturer of concrete equipment, providing solutions across the construction industry.

Products: self-loading concrete mixers, batching plants, pumps, and transit mixers.

Manufacturing Facilities: Four plants in Karnataka (Obadenahalli, Gowribidanur, and Bashettihalli).

Clientele: Served over 15,700 customers, including major infrastructure and real estate developers.

Technology & Innovation: The company has 79 full-time engineers dedicated to research and product development.

With strong expertise and a wide distribution network, Ajax Engineering is a key player in India’s infrastructure growth.

What is the objective of the IPO?

The primary objective of the Ajax Engineering Limited IPO is to facilitate an Offer for Sale (OFS), meaning the proceeds will go to existing shareholders selling their shares.

Additionally, listing the equity shares on the stock exchanges will enhance the company’s visibility and provide liquidity for investors.

How much is reserved for retail and other investors?

The IPO allocation is as follows:

Qualified Institutional Buyers (QIBs): Up to 50%

Non-Institutional Investors (NIIs): At least 15%

Retail Investors: At least 35%

What are the key strengths and risks?

Strengths:

✅ Market leader in the fast-growing self-loading concrete mixer (SLCM) segment.
✅ Comprehensive product range with strong in-house design and engineering capabilities.
✅ Technology-driven manufacturing and a robust supplier network.
✅ Large dealer network ensuring widespread reach and after-sales service.
✅ Diversified customer base with long-standing relationships in the construction industry.

Risks:

⚠️ Seasonal nature of business—Lower demand during certain quarters may impact revenue.
⚠️ Raw material price fluctuations—Any increase in material costs can affect margins.
⚠️ Regional concentration risk—All manufacturing facilities are located in Karnataka, exposing the company to regional disruptions.
⚠️ Dependence on a single facility—The Obadenahalli plant assembles most self-loading concrete mixers, and any disruption there can significantly impact operations.

What is the financial performance of Ajax Engineering Limited?

The company has shown strong financial growth over the years (INR Cr):

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	₹1,236.14	₹966.73	₹735.31
Revenue	₹1,780.07	₹1,172.57	₹771.85
Profit After Tax	₹225.15	₹135.90	₹66.21

The company has demonstrated consistent revenue growth and improving profitability, reflecting strong demand for its products.

What is the allotment and listing timeline?

Basis of allotment: February 13, 2025

Refund initiation: February 14, 2025

Shares credited to demat accounts: February 14, 2025

Listing date: February 17, 2025

Should you invest in Ajax Engineering Limited IPO?

Ajax Engineering Limited presents a strong investment opportunity with its market leadership, diversified product portfolio, and robust financial growth.

However, investors should consider the risks associated with the cyclical nature of the construction industry and the regional concentration of manufacturing facilities.

Evaluate your risk appetite and investment goals before participating in this IPO.

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