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IPO Details
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IPO Size
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IPO Timeline
Issue Highlights
Initial public offer of up to 22,881,718 equity shares of face value of Re. 1 each (equity shares) of Ajax Engineering Limited (company or issuer) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (offer price) aggregating up to Rs. [] crores (the offer), through an offer for sale by the selling shareholders (defined below), consisting of up to 2,860,170 equity shares aggregating up to Rs. [] crores by krishnaswamy vijay, up to 2,860,170 equity shares aggregating up to Rs. [] crores by kalyani vijay, up to 2,288,136 equity shares aggregating up to Rs. [] crores by jacob jiten john, up to 6,006,357 equity shares aggregating up to Rs. [] crores by jacob hansen family trust (collectively referred to as promoter selling shareholders), up to 7,436,800 equity shares aggregating up to Rs. [] crores by kedaara capital fund ii llp (kedaara capital, the investor selling shareholder) and up to 1,430,085 equity shares aggregating up to Rs. [] crores by susie john (promoter group selling shareholder) (the promoter selling shareholders, along with the investor selling shareholder and promoter group selling shareholder, collectively referred to as the selling shareholders) (offer for sale, and together, the offer). The offer includes a reservation of up to [] equity shares of face value of Re. 1 each (constituting up to []% of the post-offer paid-up equity share capital of the company) aggregating up to Rs. [] crores for subscription by eligible employees (as defined hereinafter) (the employee reservation portion). The offer less the employee reservation portion is hereinafter referred to as the net offer. The company may, in consultation with the book running lead managers, offer a discount of up to Rs. [] of the offer price to eligible employees bidding in the employee reservation portion (employee discount). The offer and the net offer will constitute []% of the post-offer paid-up equity share capital of the company. The face value of equity shares is Re. 1 each. The offer price is [*] times the face value of the equity shares. The price band and the minimum bid lot shall be decided by the company.
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
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
About Ajax Engineering Limited
Ajax Engineering Limited is a well-know Indian manufacturers of concrete equipment offering a diverse range. 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.
Ajax Engineering Ltd Business Model
So, the revenue stream for Ajax Engineering Limited is mentioned as follows:
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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.
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Non-SLCM Product Sales: Ajax Engineering Limited - manufacturers of 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.
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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.
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Sale of Services: Ajax Engineering Limited generates revenue from services delivered by servicing concrete equipment (maintenance and repairs), training services etc.
Entirely focused on generating revenue within India, the company operates from a network of 51 dealerships across 23 states. Third-party dealerships act as the main points of sale and service for Ajax's products, comprising 93.94% of revenue in 2024. Although the company may export its products, this only makes up a smaller part of total revenue, which is at 3.29% in 2024.
Ajax Engineering Ltd Growth Trajectory
Ajax Engineering Limited has reported significant vertical growth of 51.28% and 65.67% in its revenue from operations and profit after tax for fiscal year 2023 and 2024 respectively. Strong sales in SLCMs propelled by infrastructure spending and the sector's move toward mechanization was behind this financial performance.
Ajax Engineering IPO Key Points
Potential Benefits for Investors
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Introduction to a Market Leader: Ajax Engineering is among the top 3 SLCM( Self Loading Concrete Mixer) manufacturers globally and holds dominant India market share. Invest in the IPO and get some allocation to this growth story sector leader.
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Good List of Benefits: Strong Growth Potential: Sector is poised for good growth in entire construction & infrastructure sector over the next 2–3 years This optimistic view reflects in the demand of construction equipment including SLCMs which may augur well for Ajax Engineering and its investors.
Key Financials
Financial Highlights for Ajax Engineering Limited:
| Metric | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
Revenue from Operations | ₹17,414.03 million | ₹11,511.28 million | ₹7,632.89 million |
Total Equity | ₹9,179.59 million | ₹7,138.00 million | ₹5,782.74 million |
Total Liability | ₹3,181.83 million | ₹2,529.32 million | ₹1,570.39 million |
Return on Average Net Worth | 27.60% | 18.95% | 13.02% |
All Financial Information about Ajax Engineering Ltd
Comprehensive financial data, including revenue, profit/loss statements, EBITDA, and other critical metrics.
Particulars (in Rs. million)
Particulars (in Rs. million)
Promoters of Ajax Engineering
| Promoter Name | Designation |
|---|---|
Krishnaswamy Vijay | Whole-time Director and Executive Chairman |
Jacob Jiten John | Whole-time Director |
Kalyani Vijay | Promoter |
Madhuri Vijay | Promoter |
Prashanth Vijay | Promoter |
Rachel Rekha Hansen | Promoter |
Savitha Christeena Alexander | Promoter |
Sean Alexander | Promoter |
Peer Comparison:
| Company | Face Value (₹ per share) | Total Income FY24 (₹ in millions) | Basic EPS FY24 (₹) | Diluted EPS FY24 (₹) | NAV March 31, 2024 (₹ per share) | P/E FY24 | P/B FY24 | RoNW FY24 (%) |
|---|---|---|---|---|---|---|---|---|
Ajax Engineering Ltd. | 1.00 | 17,800.74 | 19.68 | 19.58 | 80.24 | - | - | 19.39% |
Action Construction Equipment Limited | 2.00 | 29,908.97 | 27.56 | 27.56 | 103.42 | 45.38 | 12.09 | 26.65% |
BEML Limited | 10.00 | 40,965.62 | 67.66 | 67.66 | 640.55 | 58.07 | 6.13 | 10.56% |
Escorts Kubota Limited | 10 | 92,482.10 | 96.8 | 96.64 | 780.83 | 39.49 | 4.84 | 11.44% |
Ajax Engineering IPO Strengths
Leadership in a large and fast-growing SLCM Market
Ajax Engineering is the leading player in India with over 70% market share in the SLCM market consistently. The company this leadership position with the fast growing SLCM market, primarily driven by infrastructure development and construction activity in India.
High Degree of In-House Design, Development and Engineering
The company has its own highly skilled team in place for designing, developing and engineering new concrete equipment. With this in-house expertise, Ajax Engineering is also able to maintain a very tight control over the product quality and quickly able to introduce any products which are nd required by the Indian Industry.
Wide Distribution and Service Network
Ajax Engineering has built a vast distribution and service network of 80+ dealers in India. Such a network provides the company with extensive market coverage, efficient product distribution and effective after-sale service increasing the levels of customer satisfaction and also creating a pivotal competitive advantage to the company.
Ajax Engineering IPO Risk Factors
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Vulnerability to Abatement in SLCM Sellers: A major part of Ajax Engineering's sales arises from the sale of SLCM, which exposes it to vulnerability associated with fluctuations in demand for concrete equipment sold in India. This dependency can hurt the financials of the company if SLCM market goes through a slump.
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Seasonality and Cyclicality: Ajax Engineering's revenues are seasonal and cyclical, affected by demand for infrastructure spending as well as overall economic conditions. So this variability does not help you in predicting revenues and giving more consistent financial results.
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Geographic Contiguity Of Operations: Ajax Engineering has all the manufacturing facilities in Karnataka so the company is exposed to concentration risk such as natural disasters, disruptions due to infrastructure constraints or any policy change in that state. 6 A disaster or other serious event materially affecting Karnataka could materially disrupt its production and harm the company's business
Key Strategies of Ajax Engineering Ltd
- The company will continue to strengthen the stronghold position of the company in the Indian market and to internationalize it.
- Ajax Engineering will increase its portfolio for serving various customers’ needs/ latest industry trends
- Focus on R&D: The company will continue to invest in research and development of new technologically superior, fuel-efficient products.
