Ajax Engineering IPO Review, Analysis, Good or Bad

As an investor, deciding whether the IPO is Good or Bad to invest in can often be challenging. If you are confused and worried about whether to Apply or Not for Ajax Engineering IPO. Then worry not here we are describing 10 important key points & in-depth detailed Ajax Engineering IPO review and Analysis which will help you to make the decision.

Strengths and Weaknesses of Ajax Engineering IPO

Strengths: 

• The company has established itself as one of the three largest manufacturers of SLCMs in the world.
• Ajax Engineering is one of the leading concrete equipment companies renowned for providing a wide range of concrete equipment, services, and solutions.
• The business is supported by a professional and experienced management team.
• The company earns revenue with the help of dealers in both India and other countries. The main customers of the company are individual contractors, small and mid-sized construction companies, rental businesses, large construction firms, and government construction agencies. 

Weaknesses:

• 85% of the company’s income is generated from the selling of self-loading concrete mixers. Any decrease in the sale of self-loading concrete mixers can significantly affect the company’s financial growth, condition, and cash flow. 
• The company generates revenue mostly during certain seasons, if sales go down in a certain season, it could adversely affect the business. 
• They have a trusted partner who helps them distribute and sell their products. Any disturbance in the dealer network can significantly affect the business’s financial growth and financial condition.
• Ajax Engineering is renowned for developing new concrete equipment in the provided time. If they fail to keep that reputation of providing products on time or the products they develop don’t reach the expectations of their customers, then it could negatively impact the company’s financial growth and condition. 

Ajax Engineering IPO Details

1. Ajax Engineering IPO Open and closing date?

The opening date of an Ajax Engineering IPO is on February 10, 2025, and the closing date of the IPO is on February 12, 2025. 

2. What is the size of the Ajax Engineering IPO? 

The company planned to raise funds around ₹1,269.35 crores via IPO. This IPO comprises only an Offer-for-sale (OFS) component of up to 2,01,80,446 equity shares with a face value of ₹1 each.

3. What are the subscription details for the Ajax Engineering IPO?

An Ajax Engineering IPO price range is set at ₹599 to ₹629 per share. In this IPO a total of 23 shares were available in 1 lot size for the minimum Retail category and for the maximum retail category, 299 shares in 13 lot sizes were available, for the S-HNI Minimum category 322 shares were available in the 14 lot sizes. While for the B-HNI Minimum category 1,610 shares were available in 70 lot sizes. 

To invest in this IPO, each investor category has specific investment amounts:

• Retail Investors: Minimum investment of ₹14,467 and maximum investment of ₹1,88,071.
• Small HNI (S-HNI): Minimum investment of ₹2,02,538.
• Big HNI (S-HNI): A minimum investment of ₹10,12,690 is required.

4. What is the listing date of Ajax Engineering IPO?

Ajax Engineering is a Mainboard IPO whose shares will be listed on February 17, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).

5. What are the objectives of the Ajax Engineering IPO Issue?

This IPO only comprises of Offer-for-sale component, which means the Company will not receive any proceeds of the Offer. Each selling shareholder will get their share of the money from the sale after paying part of the expenses and taxes.

6. About Ajax Engineering

Incorporated on July 3, 1992, Ajax Engineering is one of the leading concrete manufacturers of concrete equipment. They provide a comprehensive range of services and solutions throughout the concrete application value chain. As of over 10 years, the company has developed 110+ concrete equipment variants and sold 27,800 units in India as of March 31, 2024. For over 32 years of expertise and hard work, they have established a wide range of products that include self-loading concrete mixers, batching plants, transit mixers, boom pumps, concrete pumps, slip-form pavers, and 3D concrete printers. Ajax Engineering is one of the three largest manufacturers of self-loading concrete mixers selling 75% of the SLCM market share during fiscal year 2024. They aim to support their customers throughout the life of equipment and after-sales service by their dealers.

7. Ajax Engineering IPO Financials

The company reported revenue of ₹1,780.07 crores in 2024 against ₹1,172.57 crore in 2023. The company reported a profit of ₹225.28 crores in 2024 against a profit of ₹135.53 crores in 2023.

8. Ajax Engineering IPO Promoters

The promoters of the company are 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.

9. Who are Ajax Engineering IPO lead managers and registrar?

ICICI Securities Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the lead managers of Ajax Engineering while Link Intime India Private Limited is the registrar of the company.

10. Should you Apply or not for Ajax Engineering IPO?

Ajax Engineering is one of the leading manufacturer’s company of self-loading concrete mixers (SLCM) out of the three other largest companies in India making them one of the strongest companies to provide a diverse range of products and services. They have sold over 25,000 SLCMs and sold over 27,800 concrete equipment to over 18,900 customers in India over the past 10 years. They have established itself as the second largest concrete equipment seller in India as of 2024 all due to its strong manufacturing facility and good supplier network.

If you’re wondering whether to invest in or apply for this IPO, Consider the Ajax Engineering’s strong growth trajectory and exceptional services when it comes to its products such as advantage of first-mover, offering high-quality and reliability of products, and strong after-sales services. The company aims to provide design, develop, and engineer high-quality concrete equipment for their customers. Ajax Engineering has established itself as having a widespread reliable network of dealers across India, including Nepal and Bhutan. They have also established manufacturing plants in the Adinarayanahosahalli facility, which will help to provide various concrete equipment that will be finished by 2025. In FY2024, Ajax Engineering generated revenue of ₹17,414.03 million from operations while generating ₹26.25 million in CSR expenditure in fiscal year 2024.

Ajax Engineering stands out as an attractive investment opportunity with a solid financial and well-defined growth strategy in self-loading concrete mixtures products and services making Ajax Engineering an attractive choice for investors to invest in. However, at the end of the day it is your choice to first check if this IPO is good or bad or whether you should apply or not by checking the company’s financial growth and potential to avoid any loss of the money. For more information and queries please connect with our IPOWatch team, we are always ready to help and solve your queries.