Weak Debut: Ajax Engineering Shares List at ₹576 on NSE, 8.43% Discount to IPO Price

Weak Debut: Ajax Engineering Shares List at ₹576 on NSE, 8.43% Discount to IPO Price

Ajax Engineering shares had a subdued debut on Monday, February 17, listing at ₹576 on the NSE, reflecting an 8.43% discount to the IPO price of ₹629. On the BSE, the shares opened at ₹593, down 5.7% from the IPO price.

The company’s initial public offering (IPO), valued at ₹1,269.35 crore, was open for subscription between February 10 and February 12. Despite the weak listing, the IPO saw strong demand, with bids 6.06 times the number of shares on offer. The retail segment was subscribed 1.94 times, non-institutional investors (NII) 6.46 times, and qualified institutional buyers (QIB) 13.04 times.

IPO Details
Ajax Engineering’s IPO was a complete offer for sale (OFS) of 2.02 crore shares, with no fresh equity issued. Retail investors could apply for a minimum lot of 23 shares, requiring an investment of ₹13,777. The offer also reserved up to 78,947 shares for employees at a ₹59 discount. On February 7, the IPO raised ₹379.32 crore from anchor investors.

The company will not receive any proceeds from the sale, as the funds will go to the selling shareholders after covering offer-related expenses and taxes.

Company Overview
Founded in July 1992, Ajax Engineering specializes in manufacturing a variety of concrete equipment. With 141 concrete equipment variants developed, the company has sold over 29,800 units in India in the past decade. Ajax operates four manufacturing facilities in Karnataka, including a key facility in Obadenahalli.

Brokerage Opinions
Brokerages had recommended subscribing to the Ajax Engineering IPO, citing the company's strong financial performance and market leadership. KR Choksey highlighted Ajax’s impressive growth trajectory, with a Revenue/PAT CAGR of 51%/84% from FY22 to FY24. Reliance Securities emphasized the company’s first-mover advantage with its Self-Loading Concrete Mixers (SLCMs) in India and its strong market position.

Both firms pointed to the company’s potential for future growth and expansion, including its international market presence and focus on capital efficiency.

Disclaimer: The views and recommendations mentioned above are from individual analysts or brokerage firms, not Mint. Investors should consult certified experts before making investment decisions.

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