Ajax Engineering Ltd IPO

About Ajax Engineering Limited IPO

Ajax Engineering Limited IPO is an IPO of ₹1269 crores. It consists of an offer for sale of 20,180,446 equity shares. The IPO opens on 10th Feb, 2025 and ends on 12th Feb, 2025. The shares will be allotted on 13th Feb, 2025, the shares will be allotted on 14th Feb, 2025 and the refunds will be initiated on 14th Feb, 2025.

Objective of the IPO:

1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges; and
   
2. Carry out the offer for sale of up to 20,180,446 equity shares of face value of ₹1 each aggregating to ₹1269.35 crores by the Selling Shareholders.
   

Industry Outlook:

Increase in the mechanized production of concrete is leading to an increase in the demand for concreting equipment in India. Currently ~25% of the concrete produced is via mechanized concreting equipment, which is likely to increase in the coming years to reach ~41% by FY 2029. Given the multi-fold benefits of mechanized concreting equipment over manual methods, the market is projected to grow at a CAGR of ~22% by volume, and ~24% by value till FY2029, representing an opportunity of ~INR 191 billion (US$ 2.3 billion).

About Ajax Engineering:

Ajax Engineering Limited is a well-know Indian well-known manufacturer of concrete equipment offering a diverse range of products. Founded in 1992 as ‘Ajax Fiori Engineering (India) Private Limited’ the company runs a total of four assembling and manufacturing facilities in Karnataka and is among the most prominent names when it comes to concrete equipment in India. Ajax Engineering Limited pursues a strategy of innovation and customer service, which is consistent with its history of collaboration with international companies.

Risks of Ajax Engineering Limited IPO

• Fluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on their business, results of operations, financial condition and cash flows.

• All their assembling and manufacturing facilities are located in the state of Karnataka, which may expose them to regional risks that could adversely affect their business, results of operations, financial condition, and cash flows.

• They currently assemble substantially all SLCMs at their Obadenahalli Facility and aggregating to 99.06%, 98.83%, 98.41% and 96.98% of all SLCMs manufacturing by them during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022 respectively. Any disruptions or stoppages at this facility or other facilities could adversely impact their operations, financial condition, and results of operations.

Anchor investors:

The company may permit participation by anchor investors, in consultation with the Book Running Lead Managers (BRLMs).

• Bidding/Offering period for anchor investor is one working day before the public issue open which is on 7th Feb, 2025.

Book running lead managers:

The IPO is being managed by five top financial institutions.

• ICICI Securities Limited
• Citigroup Global Markets India Private Limited
• JM Financial Limited
• Nuvama Wealth Management Limited
• SBI Capital Markets Limited

The registrar for the IPO is MUFG Intime India Private Limited (formerly Link Intime India Private Limited).

Business Model:

So, the revenue stream for Ajax Engineering Limited is mentioned as follows:

• Self-Loading Concrete Mixers (SLCMs) Sales: According to the sources, this is largest revenue segment for Ajax Engineering Limited. During FY2024, SLCM sales accounted for 85.13% of total revenues. SLCMs are specific construction machinery employed for in-situ concrete mixing activity, predominantly used in the area with lower accessibility to ready-mix concrete.

• Non-SLCM Product Sales: Ajax Engineering Limited – manufactures multiple concrete equipment beyond SLCMs such as batching plants, transit mixers, concrete pumps and pavers. These products are tailored to specific processes in concrete production and application.

• Spare Parts Revenue: The firm also generates revenue by selling spare parts for its concrete equipment. This establishes a continuous cash flow for its after sales service takes complementing this.

• Sale of Services: Ajax Engineering Limited generates revenue from services delivered by servicing concrete equipment (maintenance and repairs), training services etc.

Company Growth Trajectory:

The company’s revenue from operations rose from ₹7632.89 crores in FY22 to ₹17414.03 crores in FY24, a rise of 128% from FY22. The PAT also rose from ₹66.208 crore in FY22 to ₹225.149 crore in FY24, thus increasing by 240% over the same period. The company has thus cemented itself as one of the fast growing and established companies in the current market.

A brief background of Ajax Engineering, its business model, growth trajectory, and market position.

1. Ajax Engineering Limited IPO Key Points Key highlights such as features, objectives of the IPO, subscription details, and potential benefits for investors.

**2. Key Financials>> Financial Highlights for Ajax Engineering Limited

How to Apply for Ajax Engineering IPO?

A step-by-step guide on how investors can apply for the Ajax Engineering IPO through Kotak Securities' platform.

How to Check Allotment Status of AJAX ENGINEERING IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down, which is AJAX ENGINEERING in this case
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Link Intime Private Ltd:

• Visit the website of Link Intime Private Ltd
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for AJAX ENGINEERING IPO?

To apply for AJAX ENGINEERING IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.