Mon Feb 10 12:29:15 UTC 2025: ## Ajax Engineering IPO Opens to Moderate First-Day Subscription

**MUMBAI, February 10, 2025** – Ajax Engineering, a leading manufacturer of concrete equipment, saw a modest 19% subscription rate on the first day of its initial public offering (IPO). The IPO, which consists entirely of an offer-for-sale (OFS) of 2.01 crore shares, is valued at up to ₹1,269 crore at the upper end of its ₹599-₹629 price band. Proceeds from the sale will go to existing shareholders, including Kedaara Capital, which is selling 74.37 lakh shares.

The company, which boasts four manufacturing plants in Karnataka and a large dealer network across India and internationally, has already raised ₹379 crore from anchor investors including several prominent mutual funds. While the retail investor portion was subscribed at 27% by late afternoon, the non-institutional investor segment reached 24% subscription, and Qualified Institutional Buyers (QIBs) participation remained relatively low. The employee portion saw a 52% subscription rate.

Ajax Engineering, known for its innovative products like self-propelled boom pumps and slip form concrete pavers (the first Indian company to export these), is targeting significant growth in its export markets across South and Southeast Asia, the Middle East, and Africa. The company cites a positive industry outlook fueled by India’s infrastructure development boom, projecting significant market growth in the coming years.

Analysts offer mixed opinions on the IPO. While some highlight the company’s strong financials (revenue doubled in the past three years, with a 51% CAGR), dominant market share, and attractive valuation relative to peers, others express concern about the 100% OFS nature of the issue and the relatively low initial subscription rate. The grey market premium currently stands at ₹52, suggesting a potential listing price of ₹681.

The IPO closes on February 12th, with allotment expected on February 13th and listing on February 17th. Investors are advised to conduct thorough due diligence before making any investment decisions.

Read More