Ajax Engineering Limited is devising an initial public offering (IPO) to provide withdrawal to existing shareholders. The IPO is sold entirely on a share of 2.02 crore and is aggregated to Rs 1,269.35. The company is a leading manufacturer of concrete equipment and serves the infrastructure and construction sector. You need to invest Ajax Engineering IPO? What are the strengths of the company, positive factors, and what risk factors should investors consider before investing in such an IPO? Complete review and analysis.
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About Ajax Engineering Limited
Founded in July 1992, Ajax Engineering Limited is a well-known player in manufacturing a wide range of concrete equipment. The company has sold over 29,800 units in India over the past decade and has 51 dealers in 23 states. It also has an international presence with dealers and distributors in South and Southeast Asia, the Middle East and Africa. The company operates four manufacturing facilities in Karnataka, ensuring a robust production and distribution network.
Competitiveness
- Market leader in the Self-Loaded Concrete Mixer (SLCM) segment with a market share of over 75%.
- A powerful product portfolio including batching plants, transit mixers, boom pumps, concrete pumps, slip foam pavers and more.
- The brand has established its reputation through its wide service network across India.
- Technological advances in assembly and manufacturing processes.
- Powerful in-house research and development (R&D) capabilities.
- A diversified customer base with long-term relationships in the construction equipment sector.
- An experienced management team with a deep understanding of industry trends.
Publish Ajax Engineering IPO information and details
- IPO Opening Date: February 10, 2025
- IPO close date: February 12, 2025
- List date (tentative): February 17, 2025
- Issuance type: 100% Sale Offer
- Price band: Rs 599 – Rs 629 per share
- Lot size: 23 shares
- Retail Minimum Investment: Rs 14,467
- Retail Maximum Investment: Rs 1,88,071
- Registrar: Link INTIME INDIA PRIVATE LIMITED
- Listing: BSE and NSE
Company finances
| Finance (Rs crores) | September 2024 | March 2024 | March 2023 | March 2022 |
|---|---|---|---|---|
| assets | 1,348.76 | 1,236.14 | 966.73 | 735.31 |
| Profit | 794.16 | 1,780.07 | 1,172.57 | 771.85 |
| After-Tax Profit (PAT) | 101.02 | 225.15 | 135.90 | 66.21 |
| Net assets | 995.84 | 917.96 | 713.80 | 578.27 |
| Preparation and excess | 984.40 | 906.52 | 702.36 | 575.41 |
| Complete borrowing | 0.00 | 6.23 | 10.14 | 7.16 |
IPO objects
The company does not receive revenue as this Ajay Engineering IPO size 1,269 crore is a full sales offer. Sales shareholders, including promoters and institutional investors, offload their shares to public investors.
P/E ratio and peer comparison
- Pre-IPO EPS: 19.68
- EPS after IPO: 17.66
- IPO PRE-IPO P/E ratio: 31.96x
- P/E ratio after IPO: 35.62x
Prices for the industry average P/E price of 45X with listed peers in the construction equipment sector, such as BEML Limited trading at P/E 54X (highest) and Escorts Kubota Ltd trading at P/E 35.7X are fair It seems to be visible. Although the P/E ratio has been slightly higher after the IPO, the company’s market advantage and financial growth provide justification for its valuation.
Why invest in Ajax Engineering IPOs?
- Strong leadership position in the SLCM market.
- Consistent revenue growth and profitability.
- With an increase in dealer networks, we will expand our global footprint.
- A well-delivered product portfolio to meet your infrastructure needs.
- A proactive industry outlook as government focuses on infrastructure development.
- Low debt levels indicate financial stability.
- Experienced management with a track record of execution.
Risk factors
- The company will not benefit financially from this issue as an IPO is an offer of sales.
- A slowdown in the construction or infrastructure sector could affect demand.
- Increased raw material costs can put pressure on margins.
- Competition with domestic and international players.
- Reliance on government policies and regulations in the construction sector.
- Investors need to review Ajax Engineering IPO RHP About the complete risk factors.
How do I buy an Ajax Engineering IPO?
Investors use ASBA (applications supported by blocked amounts) to trade accounts via online banking or UPI-based applications on platforms such as Zerodha, Upstox, Groww, and other brokerage companies. You can apply for an IPO through
Grey Market Premium (GMP)
Currently, this IPO’s Gray Market Premium (GMP) is available on limited websites such as Chittorgarh, where GMP shows Rs 52 per share. Based on limited information, we cannot say the expected list price for an Ajax Engineering IPO.
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Ajax Engineering IPO – Good or bad?
The Ajax Engineering IPO presents strong investment opportunities with market leadership, robust financial and promising growth prospects. A higher P/E ratio may seem like a concern, but the company’s exclusive presence in the SLCM market is an attractive bet. However, investors should consider risks such as industry circularity and margin pressure before investing.
Overall, this IPO appears to be well positioned for long-term profits, and medium-term investors can consider subscribing to this.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should consult with a financial expert before making a decision.
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