Ajax Engineering Limited is coming up with an IPO to sell 2.02 crore shares worth INR 1,269.35 crores. The company aims to achieve the benefits of listing equity shares. 

Ajax Engineering IPO – Important Dates 

Read more about Ajax Engineering Limited IPO GMP

Ajax Engineering Limited IPO – Company Profile 

Ajax Engineering Limited is a leading concrete equipment manufacturer with 141+ variants, selling 29,800+ units in India over 10 years. Their 32-year portfolio includes SLCMs, batching plants, transit mixers, pumps, slip-form pavers, and 3D concrete printers. 

They have India’s largest concrete equipment dealer network with 51 dealerships, 114 touchpoints, and 25 global distributors. Their exclusive, long-term dealers and dedicated 85-member service team ensure strong customer support and after-sales service. 

They maintain strong relationships with 546 suppliers, ensuring reliable, localised sourcing with imports under 10%. Proximity to their facilities enables efficient procurement, co-development, and quality control, while process upgrades help suppliers meet evolving technology and emission norms. 

Ajax Engineering Ltd IPO Fundamental Analysis 

Ajax Engineering Limited’s financial analysis reveals a mixed performance. Revenue has shown strong growth, reflecting expansion. Equity and liabilities increased, profitability improved, and EPS rose, but RoNW declined. Liquidity strengthened, though inventory turnover slowed, indicating potential inefficiencies. 

• Revenue Trend: The revenue increased from ₹11,511.28 millions in March 2023 to ₹17,414.03 millions in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 7,699.85 million. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) increased from ₹1,359.04 million in March 2023 to ₹2,251.49 million in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹1,010.22 million. 
• Earnings per Share (EPS): The diluted EPS increased from ₹11.88 in March 2023 to ₹19.58 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ended September 2024 is ₹8.79.
• Return on Net Worth (RoNW): The RoNW has reduced from 14.20% to 8.15%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

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Ajax Engineering IPO Financial Analysis 

Ajax Engineering Limited IPO Peer Comparison 

Ajax Engineering Limited, Action Construction Equipment Limited, BEML Limited, and Escorts Kubota Limited are key players in the industry. Their market positions vary, with differences in valuation, profitability, efficiency, and financial performance across segments. 

Ajax Engineering Ltd IPO Objective 

The main objective of Ajax Engineering Limited is to achieve the benefits of listing equity shares. 

Ajax Engineering IPO Risks And Challenges 

Ajax Engineering Limited’s risk includes cyclical demand driven by government spending, material price fluctuations, and regional risks from its Karnataka facilities, which could impact production, costs, margins, and financial performance due to natural disasters and regulatory changes. 

• The concrete equipment industry is cyclical, driven by government infrastructure spending and economic conditions. Seasonal demand fluctuations and economic downturns can impact sales, profitability, and financial performance, making consistent revenue challenging for the company. 

• The company relies on domestic and international suppliers for materials, with imports constituting under 10% of costs. Fluctuations in material prices, supply shortages, and quality issues may affect production costs, margins, and financial performance. 

• The company’s manufacturing facilities in Karnataka expose it to regional risks like natural disasters, workforce disruptions, and regulatory changes. Such events could impact operations and compliance costs and require investments in new technologies, affecting financial performance. 

Ajax Engineering Ltd IPO – Industry & Market Potential 

Cement, a core construction element, contributed ~11% to the sector. India’s cement consumption grew from ~325 million tonnes in FY 2019 to ~405 million tonnes in FY 2024, with a projected CAGR of ~8% through FY 2029. 

The ready-mix concrete (RMC) market in India, with an 11% share in total concrete consumption, is projected to grow at a 19% CAGR, reaching 17% by FY 2029, with significant contributions from Metro and Tier 1+ cities. 

The global concrete equipment market, valued at INR 1,543 Tn (USD 18.5 billion) in FY2024, is projected to grow at a 6% CAGR, reaching INR 2,077 Tn (USD 25 billion) by FY2029, driven by urbanisation and infrastructure growth. 

Ajax Engineering Limited IPO – Type of Offer 

Ajax Engineering Limited proposes an offer to sell 2.02 crore existing shares worth INR 1,269.35 crores, aiming to achieve the benefits of listing the equity shares. 

1. Offer for sale: Ajax Engineering Limited is offering to sell 2.02 crore existing shares worth INR 1,269.35 crores. The following are the details of the existing shareholders, who are also the promoters selling the shares:

Ajax Engineering IPO Offer Size 

The offer size of Ajax Engineering Limited is INR 1,269.35 crores, consisting of an offer to sell 2.02 crore shares. The company aims to achieve the benefits of listing the equity shares. 

Ajax Engineering Limited IPO Allotment Structure 

Ajax Engineering Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for Ajax Engineering IPO?

To apply for the Ajax Engineering Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Ajax Engineering Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Ajax Engineering Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Ajax Engineering IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Ajax Engineering Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Ajax Engineering Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.  

Apart from Alice Blue, there are other ways to check the allotment status of the Ajax Engineering Limited IPO:

● Registrar’s Website: Visit the website of MUFG Intime India Private Limited, the registrar of the Ajax Engineering Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Ajax Engineering Ltd IPO Offer Registrar

The registrar for the Ajax Engineering Limited IPO is MUFG Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

MUFG Intime India Private Limited 

C-101, 1st Floor, 247 Park

Lal Bahadur Shastri Marg, 

Vikhroli (West), Mumbai 400 083

Maharashtra, India

Tel: +91 81 0811 4949

E-mail: ajaxengineering.ipo@linkintime.co.in

Website: www.linkintime.co.in 

Ajax Engineering IPO – FAQs