AJAX ENGINEERING LIMITED IPO is fully book build issue and total IPO size is ₹1,269.35 crores. The entire share offering is an offer for sale of 20180446 shares.
The subscription period for the AJAX ENGINEERING LIMITED IPO starts on February 10, and ends on February 12.
The allotment process is expected to be finalized by February 13. The AJAX ENGINEERING LIMITED IPO is scheduled to list on BSE and NSE, with a tentative listing date of February 17, 2025.
The price band for the AJAX ENGINEERING LIMITED IPO is ₹599 to ₹629 Per Share
Registrar for this IPO is MUFG Intime India Private Limited (formerly Link Intime India Private Limited) and lead managers for AJAX ENGINEERING LIMITED IPO are ICICI Securities Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, Nuvama Wealth Management Limited, SBI Capital Markets Limited.
IPO Schedule
| IPO Open Date | Monday, 10 Feb, 2025 |
|---|---|
| IPO Close Date | Wednesday, 12 Feb, 2025 |
| IPO Allotment Date | Thursday, 13 Feb, 2025 |
| Refund Initiation | Friday, 14 Feb, 2025 |
| Share credit in Demat | Friday, 14 Feb, 2025 |
| Listing Date | Monday, 17 Feb, 2025 |
Key Details
| Price Band | ₹599 to ₹629 Per Share |
|---|---|
| Lot Size | 23 Shares |
| Face Value | ₹1 Per Equity Share |
| Total Issue Size | ₹1,269.35 Crores |
| Fresh Issue | - |
| OFS Issue | ₹1,269.35 Crores |
| Employee Discount | ₹59 Per Share |
| Issue Type | offer for sale |
| Listing At | BSE and NSE |
Share Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB | 50% |
| Retail | 35% |
| NII/HNI | 15% |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 23 | 14,467 |
| Retail (Max) | 13 | 299 | 188,071 |
| S-HNI (Min) | 14 | 322 | 202,538 |
| S-HNI (Max) | 69 | 1587 | 998,223 |
About Ajax Engineering Limited Company
Ajax Engineering is a leading concrete equipment manufacturer in India, offering a comprehensive range of equipment, services, and solutions across the concrete application value chain. As of September 30, 2024, the company boasts over 141 concrete equipment variants and has sold over 29,800 units in India over the last decade.
A key strength of Ajax Engineering is its leadership in the Self-Loading Concrete Mixer (SLCM) segment, holding a substantial market share of approximately 77% in terms of units sold during FY24. The company's SLCMs have become increasingly vital for faster and reliable construction methods. During FY24, 12% of India's total concrete production was achieved through Ajax Engineering's SLCMs.
Beyond SLCMs, Ajax Engineering provides a diverse portfolio of non-SLCM equipment, including batching plants, transit mixers, boom pumps, and slip-form pavers. The company is actively expanding its market presence in this sector, with non-SLCM sales demonstrating robust growth.
Ajax Engineering's success is underpinned by several factors. First, the company adopts an asset-light model, which is crucial for navigating the cyclical nature of infrastructure projects. This model allows for scalable operations and efficient resource allocation. As of H1FY25, Ajax Engineering achieved an EBITDA margin of 15.49% and a PAT margin of 12.72%, exceeding that of its peers. The company also delivered a 17.14% return on invested capital (ROIC) in H1FY25 and 25.00% in H1FY24. Further, Ajax Engineering has the highest Return on Fixed Assets among leading concrete equipment manufacturing peers with 94.64% in H1FY 2025 and 93.68% in H1FY 2024.
Second, Ajax Engineering maintains the largest dealer network among concrete equipment manufacturers in India, ensuring extensive market reach and responsiveness to customer needs across diverse regions. This extensive network supports timely sales, service, and support, fostering strong customer relationships.
Looking ahead, Ajax Engineering is positioned to capitalize on emerging opportunities, including exports to developing economies and expansion into the broader construction equipment sector. India's concrete equipment exports are projected to increase at a CAGR of ~30% by FY29, reaching approximately ₹60-80 crore (USD 72-96 million) in FY24. The global concrete equipment market is valued at approximately ₹154,300 crore (USD 18.5 billion) in FY24 and is projected to grow to ₹207,700 crore (USD 25 billion) by FY29.
The broader construction equipment industry presents a complementary opportunity, with a market value of ₹58,300 crore (USD 7,024 million) in FY24, projected to reach ₹132,200 crore (USD 15,928 million) by FY29. By leveraging its existing brand reputation, customer base, and technological capabilities, Ajax Engineering aims to drive growth in both the concreting and construction equipment markets.
The company has a strong in-house design, engineering, and development team with 79 full-time employees. This emphasis on innovation further strengthens the company's competitive edge and its ability to meet evolving customer needs.
Ajax Engineering Limited Financial Details
| Period Ended | 30 Sep 2024 | 30 Sep 2023 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|---|
| Assets | 1348.76 | 1070.68 | 1236.14 | 966.73 | 735.31 |
| Revenue | 769.99 | 684.86 | 1741.40 | 1151.13 | 763.29 |
| Profit After Tax | 101.02 | 82.94 | 225.15 | 135.90 | 66.21 |
| Net Worth | 995.84 | 799.59 | 917.96 | 713.80 | 578.27 |
| Reserves and Surplus | 984.40 | 788.15 | 906.52 | 702.36 | 575.41 |
| Total Borrowing | 0.00 | 0.00 | 6.23 | 10.14 | 7.16 |
₹ In Crore
Key Performance Indicator
| Basic EPS (in ₹) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt-Equity Ratio | Return on Equity (ROE) | Return on Capital Employed (ROCE) |
|---|---|---|---|---|---|
| 19.68 | 19.39 | 8.024 | NA | NA | NA |
Offer Objectives
The offer includes an Employee Stock Option Plan 2024 (ESOP 2024) designed to drive performance, retain employees, and create wealth. It has two schemes: Scheme I for all eligible employees and Scheme II for the CEO and management.
A maximum of 5,720,340 Equity Shares can be granted under ESOP 2024. As of February 4, 2025, 1,367,209 options have been granted but not vested or exercised. Scheme I granted 205,077 options to 35 employees at an exercise price of ₹1. Scheme II granted 1,162,132 options to 3 employees with an exercise price of ₹262.
The offer also involves an Offer for Sale (OFS) of up to 20,180,446 equity shares by the Selling Shareholders to achieve listing benefits and provide a public market. The Company will not receive any proceeds from the Offer. Key Selling Shareholders include Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Jacob Hansen Family Trust, Susie John and Kedaara Capital Fund II LLP.
Offer expenses are estimated at ₹[●] million. These expenses include listing fees, underwriting fees, and fees payable to BRLMs, legal counsel, and the Registrar to the Offer. The Selling Shareholders will bear these expenses. Commissions are payable to SCSBs and Syndicate Members. Processing fees for applications also apply.
Company Details
Address:
253/1, 11th Main Road 3rd Phase, Peenya Industrial Area, Bengaluru 560 058 Karnataka, India
Phone: +91 82 9633 6111
Email: [email protected]
Website: http://www.ajax-engg.com
IPO Registrar Details
MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
Phone: +91 81 0811 4949
Email: [email protected]
Website: http://www.linkintime.co.in
Offer Prospectus & Documents
Lead Managers
- ICICI Securities Limited
- Citigroup Global Markets India Private Limited
- JM Financial Limited
- Nuvama Wealth Management Limited
- SBI Capital Markets Limited
