Mon Feb 10 07:04:11 UTC 2025: ## Ajax Engineering IPO Opens with Moderate Demand on Day 1

**Mumbai, February 10, 2024** – Ajax Engineering, a concrete equipment manufacturer, 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, opened at a price band of ₹599 to ₹629 per share, aiming to raise up to ₹1,269 crore for existing shareholders.

Early trading data from the Bombay Stock Exchange (BSE) showed a subscription rate of around 6% by 10:48 IST and 10% by 12:06 IST. Retail investors showed slightly higher interest with subscriptions around 9% and 15% respectively, while non-institutional investors’ participation was lower at 5% and 9% respectively. The Qualified Institutional Buyers (QIB) portion remained largely unsubscribed at the time of reporting. The employee portion showed higher subscription rates at 13% and 23% at different times of the day.

The IPO, which closes on February 12, involves the sale of shares by promoters and Kedaara Capital, which plans to offload 74.37 lakh shares. Ajax Engineering itself will not receive any funds from the IPO. The company’s market capitalization is estimated at ₹7,200 crore at the upper price band.

Prior to the IPO, Ajax Engineering raised ₹379 crore from anchor investors, including prominent mutual funds like SBI Mutual Fund and Axis Mutual Fund. These investors purchased shares at the upper end of the price band (₹629).

The grey market premium (GMP) for Ajax Engineering shares is reported at ₹52, suggesting an anticipated listing price around ₹681. However, analysts caution that GMP is not a reliable indicator of future performance.

The company operates four manufacturing plants in Karnataka and boasts a vast dealer network across India. Analysts have offered mixed views on the IPO, with some citing strong financials and attractive valuation, while the tepid initial response suggests some caution from the market. Allotment is expected on February 13th, with refunds and credit to demat accounts on February 14th. Listing on the BSE and NSE is anticipated for February 17th.

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