Ajax Engineering Ltd IPO

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.