Ajax Engineering Ltd IPO

Ajax Engineering Ltd IPO

Since its inception 32 years ago, the company has developed a product portfolio that includes equipment such as self-loading concrete mixers and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps and self-propelled boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete. It also continues to assist customers throughout the life of the equipment, and with that aim, it provides spare parts of the equipment sold by the company and facilitate the provision of after sales service by its dealers. Its equipment is sold through its dealers in and outside India to a diverse range of customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction companies and government construction agencies. As of September 30, 2024, its dealer network comprised of 51 dealerships across 23 states in India, and the company is accessible to its customers through 114 touchpoints, which comprise 51 dealer headquarters and 63 branches (of which, 34 also act as service centers) managed and operated by its dealers. Its revenue from operations for the six months period ended September 30, 2024 and September 30, 2023 and the Financial Years 2024, 2023 and 2022 was Rs. 7,699.85 million, Rs. 6,848.59 million, Rs. 17,414.03 million, Rs. 11,511.28 million and Rs. 7,632.89 million, respectively. Of this, 81.48%, 81.71%, 85.13%, 83.06%, and 77.44% for the respective periods/years were generated from the sale of SLCMs.

Ajax Engineering Ltd IPO Details

Total Shares Offered

₹ 2,01,80,446

Offer to Public

2,01,80,446

Retail Max (Shares)

₹ 70,35,525

Pre Issue Promoters Holding

₹ 10,69,70,000

Exchange

BSE

Issue size

₹ 1269.35 Cr

IPO Open Date

Feb 10, 2025

Close Date

Feb 12, 2025

Lot Size

23

Min Investment

₹ 13,777

Issue Type

Book Building

Listing Date

Feb 17, 2025

Ajax Engineering Ltd IPO Dates

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Feb 10, 2025
Opening date
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Feb 12, 2025
Closing date
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Feb 13, 2025
Basis of Allotment
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Feb 14, 2025
Initiation of Refunds
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Feb 14, 2025
Credit of Shares
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Feb 17, 2025
Listing date

Details

SectorType
SectorEngineering
Sub SectorNA
Issue TypeBook Building

Subscription Status

*Values are in Lakhs

Investor Type

QIB

NII

Retail

Employee

Total

Ajax Engineering Ltd Financial Status

Income Statement

Particulars (In Rs. Crores)

Balance Sheet

Particulars (In Rs. Crores)
Particulars (in Rs. Crores)FY23FY22FY21
Revenue from operations361.81312.19191.51
EBITDA372.74322.46200.07
PAT260.10225.15135.90
Total Assets616.13414.03288.98
Share Capital11.4411.4411.44
Total Borrowings126.3434.0542.05
Operating Activities (Net Cash)271.03235.42144.46
Investing Activities (Net Cash)635.85607.77488.82
Financing Activities (Net Cash)126.3434.0542.05
Net Cashflow67.4871.259.05

About Ajax Engineering Ltd

Ajax Engineering Limited was incorporated as `Ajax Fiori Engineering (India) Private Limited' on July 3, 1992, at Bengaluru, Karnataka, India as a private limited company under the Companies Act, 1956 pursuant to certificate of incorporation issued by the Registrar of Companies, Karnataka at Bengaluru (RoC). Separately, an entity named `Ajax Engineering Private Limited' (Pre-merger AEPL) was incorporated as private limited company under the Companies Act, 1956 pursuant to certificate of incorporation dated December 30, 1983 issued by the RoC. Pre-merger AEPL and Ajax Construtech Private Limited were later merged into the Company pursuant to the scheme of arrangement approved by the National Company Law Tribunal, Bengaluru, vide its order dated March 6, 2019 with the appointed date of April 1, 2018 (Scheme of Arrangement). Pursuant to the Scheme of Arrangement, the name of the Company was changed from `Ajax Fiori Engineering (India) Private Limited' to `Ajax Engineering Private Limited' and a fresh certificate of incorporation was issued on March 15, 2019 by the RoC. Subsequently, the Company was converted to a public limited company and the name of the Company changed to `Ajax Engineering Limited' pursuant to a Shareholders' resolution dated August 9, 2024 and a fresh certificate of incorporation dated September 23, 2024 was issued by the Registrar of Companies, Central Processing Centre.

In India, concrete equipment, particularly self-loading concrete mixers (SLCMs), plays an essential role in supporting the growing demand for infrastructure and construction projects. Other concrete equipment manufacturers include local companies such as Aquarius Engineers Private Limited and subsidiaries of international companies such as Fiori Concrete Machines India Private Limited, KYB-Conmat Private Limited, Putzmeister India Private Limited, Schwing Stetter (India) Private Limited, among others. Infrastructure development is projected to propel the demand for mechanized concrete equipment in India and grow the industry from Rs. 61 billion (US$731 million) for Financial Year 2024 to Rs. 178 billion (US$2,148 million) for Financial Year 2029. The concrete equipment market in India, and in particular, the market for SLCMs, is experiencing significant growth on account of several factors, including an increase in cement consumption and an increase in public and private capital expenditure towards infrastructure, irrigation, housing and renewable power projects, leading to increased demand for construction materials and equipment.

Since its inception 32 years ago, the company has developed a product portfolio that includes equipment such as self-loading concrete mixers and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps and self-propelled boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete. It also continues to assist customers throughout the life of the equipment, and with that aim, it provides spare parts of the equipment sold by the company and facilitate the provision of after sales service by its dealers. Its equipment is sold through its dealers in and outside India to a diverse range of customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction companies and government construction agencies. As of September 30, 2024, its dealer network comprised of 51 dealerships across 23 states in India, and the company is accessible to its customers through 114 touchpoints, which comprise 51 dealer headquarters and 63 branches (of which, 34 also act as service centers) managed and operated by its dealers. Its revenue from operations for the six months period ended September 30, 2024 and September 30, 2023 and the Financial Years 2024, 2023 and 2022 was Rs. 7,699.85 million, Rs. 6,848.59 million, Rs. 17,414.03 million, Rs. 11,511.28 million and Rs. 7,632.89 million, respectively. Of this, 81.48%, 81.71%, 85.13%, 83.06%, and 77.44% for the respective periods/years were generated from the sale of SLCMs.

Peer Comparison:

  • Action Construction Equipment Ltd
  • BEML Ltd
  • Escorts Kubota Ltd

Ajax Engineering Ltd Key Points

Strengths

Market leader in a large and fast-growing SLCM market with an approximately 77%, 75%, 77% and 86% market share in the SLCM market in India in terms of number of SLCMs sold during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022, respectively.

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 as of September 30, 2024.

Engineering-focused concrete equipment company with strong in-house design, development and engineering capabilities.

Technology-led assembly and manufacturing processes supported by robust supplier network.

Dealer-led distribution model with 51 dealerships across 23 states in India as of September 30, 2024.

Risk

The company derives a significant majority of its revenue from the sale of self-loading concrete mixers (85.13% of the company revenue from operations for the Financial Year 2024). Any decrease in sales of SLCMs or demand for concrete equipment in India could adversely affect its business, results of operations, financial condition and cash flows.

The company business is seasonal in nature and any decrease in sales during certain quarters could have an adverse impact on its financial performance.

Fluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on its business, results of operations, financial condition and cash flows.

Strategy

Maintain its leadership position and grow market share of its SLCM portfolio by developing innovative products to cater to new untapped markets.

Strengthen capabilities and increase market share of its non-SLCM portfolio.

Improving operational efficiencies.

Increase its presence in overseas markets through exports.

Explore opportunities for inorganic growth.

How To Apply for Ajax Engineering Ltd IPO Online?

Step 1:

Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.

Step 2:

From the list of open IPOs, select the IPO you want to invest.

Step 3:

Go through the IPO details like lot size, price band, about the company, etc.

Step 4:

Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.

Step 5:

Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.

FAQs on IPO (Initial Public Offering)

What is the issue size of the Ajax Engineering Ltd IPO?

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Ajax Engineering Ltd's IPO offers shares for up to 0 It begins on Feb 10, 2025 and ends on Feb 12, 2025.

What is the price of the Ajax Engineering Ltd IPO?

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The price of Ajax Engineering Ltd IPO ranges between ₹599 to ₹629 per share.

What are the open and close dates for the Ajax Engineering Ltd IPO?

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The Ajax Engineering Ltd IPO opens on Feb 10, 2025 and closes on Feb 12, 2025.

When will the Ajax Engineering Ltd IPO be allotted?

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The allotment for the Ajax Engineering Ltd IPO will be finalised on Feb 13, 2025. The shares will be listed on BSE and NSE on Feb 17, 2025.

What is the minimum lot size required for Ajax Engineering Ltd IPO?

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The minimum lot size for Ajax Engineering Ltd IPO is 23 shares, priced between ₹599 to ₹629 per share.

What is the GMP of Ajax Engineering Ltd IPO?

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The GMP (Grey Market Premium) of Ajax Engineering Ltd IPO fluctuates based on market demand and sentiment.

How do you check the allotment status of Ajax Engineering Ltd IPO?

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To check the allotment status of Ajax Engineering Ltd IPO, visit the registrar's website, select the IPO, enter your PAN Card number, Application Number, or DP Client ID, and click 'search.'

Where is the Ajax Engineering Ltd IPO getting listed?

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The Ajax Engineering Ltd IPO is getting listed on the BSE and NSE. Bidding opens on Feb 10, 2025, and closes on Feb 12, 2025. The allotment is finalised on Feb 13, 2025.

How do you apply for the Ajax Engineering Ltd IPO?

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To apply for the Ajax Engineering Ltd IPO, download the BlinkX app, complete KYC, select the IPO, enter bid details, and submit. Verify UPI payment for shares allotment.

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