KuberGrow Team Ajax Engineering Limited, a prominent manufacturer of concrete equipment, commenced trading on the Indian stock exchanges today, February 17, 2025. The company’s shares were listed at ₹576 on the National Stock Exchange (NSE), reflecting an 8.4% discount to the issue price of ₹629. On the Bombay Stock Exchange (BSE), the shares debuted at ₹593, a 5.7% decrease from the IPO price.
IPO Overview and Subscription Details
The initial public offering (IPO) of Ajax Engineering was open for subscription from February 10 to February 12, 2025, with a price band set between ₹599 and ₹629 per share. The offering comprised an entirely offer-for-sale (OFS) of 2.01 crore shares, aggregating to ₹1,269 crore at the upper price band. Notably, the company did not issue any new shares, and thus, did not receive any proceeds from the IPO; the funds were directed to the selling shareholders.
The IPO witnessed a subscription rate of 6.45 times, indicating robust demand from investors. The Qualified Institutional Buyers (QIBs) segment was oversubscribed by 14.41 times, Non-Institutional Investors (NIIs) by 6.47 times, and Retail Individual Investors (RIIs) by 1.93 times.
Market Performance and Investor Sentiment
Despite the strong subscription figures, Ajax Engineering’s shares faced a subdued listing, which analysts attribute to prevailing market volatility and cautious investor sentiment. The grey market premium (GMP) had also indicated a potential for a flat or discounted listing prior to the debut.
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, commented on the listing: “Given the market turbulence, Ajax Engineering’s listing was well below street estimations of a flat listing. However, it has managed to sail through successfully, attracting investors from all categories.”
Company Profile and Market Position
Incorporated in July 1992, Ajax Engineering Limited specializes in manufacturing a diverse range of concrete equipment, including Self-Loading Concrete Mixers (SLCMs), batching plants, transit mixers, boom pumps, slip-form pavers, and 3D concrete printers. The company holds an approximate 77% market share in the SLCM segment as of September 30, 2024. With four manufacturing facilities in Karnataka, Ajax Engineering has developed 141 equipment variants and sold over 29,800 units in India over the past decade.
Outlook
While the initial listing was below expectations, the long-term prospects for Ajax Engineering remain positive, supported by its market leadership and the anticipated growth in India’s infrastructure sector. Investors are advised to monitor the company’s performance and broader market conditions to assess future investment opportunities.
