Mon Feb 10 07:29:15 UTC 2025: ## Ajax Engineering IPO Opens to Tepid Demand on Day 1
**MUMBAI, February 10, 2024** – Ajax Engineering, a concrete equipment manufacturer backed by Kedaara Capital, saw a muted response on the first day of its initial public offering (IPO). The IPO, entirely an offer-for-sale (OFS) of 2.01 crore shares, aims to raise up to ₹1,269 crore at the upper end of its ₹599-₹629 price band. No funds will go to the company itself; all proceeds will go to selling shareholders, including Kedaara Capital.
By 12:06 IST, the IPO had achieved only 10% subscription, according to BSE data, with 1,359,645 shares bid against 14,149,997 shares on offer. Later in the day, this figure dropped to 6% subscription. Retail investors showed slightly more interest, with 15% (and later 9%) subscription in their quota, while non-institutional investors reached 9% (later 5%) subscription. The qualified institutional buyer (QIB) portion remained largely unsubscribed. The employee portion saw 23% (later 13%) subscription. The IPO reserves 50% for QIBs, 15% for non-institutional investors, and 35% for retail investors.
Despite the slow start, Ajax Engineering had already raised ₹379 crore from anchor investors at ₹629 per share, including prominent investors like SBI Mutual Fund and Axis Mutual Fund. The grey market premium (GMP) currently stands at ₹52, suggesting an estimated listing price of ₹681, a premium of 8.27% over the upper IPO price band.
The company, which boasts four manufacturing plants in Karnataka and a large dealer network, operates in a growing market. Analysts cite strong financials and attractive valuations as reasons to consider the IPO, despite the initial low subscription rate. The allotment is expected on February 13th, with refunds and crediting of shares to demat accounts on February 14th. Listing on the BSE and NSE is anticipated for February 17th.
First Piper 