Ajax Engineering IPO

Ajax Engineering Ltd

₹13,777 /23 sharesMinimum Investment

Ajax Engineering IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE₹629.00₹576.00-₹53.00 (8.43%)

Ajax Engineering IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
10 Feb ‘25 - 12 Feb ‘25₹13,77723₹599 - ₹629
Issue SizeIPO Doc
1269.35Cr
RHP PDF

Subscription rate

As of 12 Feb'25, 05:00 PM
Qualified Institutional Buyers11.58x
Non-Institutional Investor4.60x
Retail Individual Investor0.95x
Employees2.35x
Total4.76x

About Ajax Engineering

Ajax Engineering is a manufacturer of concrete equipment and offers products, services, and solutions across the concrete application process. The company’s product portfolio includes self-loading concrete mixers (SLCMs) and batching plants for concrete production, transit mixers for transportation, boom pumps, concrete pumps, and self-propelled boom pumps for placement. The company also provides slip-form pavers for paving and 3D concrete printers. Ajax Engineering's equipment is used in different projects, including transportation infrastructure such as roads, railway lines, tunnels, elevated tracks, flyovers, and bridges. These products also support irrigation projects like reservoirs, canals, check dams, and aqueducts, as well as infrastructure developments involving landscaping, drainage, and the construction of airports, power plants, factories, and oil and gas terminals.;
Founded in
1992
Managing director
Mr. Shubhabrata Saha
Parent organisation
Ajax Engineering Ltd
Ajax Engineering Ltd IPO
https://www.youtube.com/watch?v=KKSfnJvXjVU

Strengths & Financials of Ajax Engineering

Strengths
Risks
The company states that it supports customers throughout the lifespan of its equipment by providing spare parts and enabling after-sales service through its dealer network.
The company also states that the equipment assembly and boom arm manufacturing are carried out using horizontal boring machines at the company’s manufacturing facilities, which follow a lean production model. Key practices include the Andon system, just-in-time production, Kaizen, Poka-Yoke, and online traceability.
The company is involved in research and development of pre-mixes optimized for 3D printing, ensuring precise material properties for effective concrete extrusion and setting. Additionally, through TASC, it claims to provide specialized training programs for operating, maintaining, and repairing concrete construction equipment. These programs are certified by the Infrastructure Equipment Skill Council and the National Council of Vocational Education and Training.
Over the past decade, more than 29,800 concrete equipment units have been sold to over 18,900 customers across India. SLCMs are used in a variety of construction projects.
As of September 30, 2024, the company offers over 141 concrete equipment variants, serving different requirements within the concrete application value chain.
The company has seen an increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 763.29 crore in FY22 to Rs 1,151.13 crore in FY23 to Rs 1,741.40 crore in FY24. PAT increased from Rs 66.21 crore in FY22 to Rs 135.90 crore in FY23 to Rs 225.15 crore in FY24.
A major portion of the company’s revenue comes from the sale of self-loading concrete mixers (SLCMs). These contributed Rs 627.41 crore (81.48%) for the six months ending September 30, 2024, and Rs 1,482.50 crore (85.13%), Rs 956.17 crore (83.06%), and Rs 591.12 crore (77.44%) in FY24, FY23, and FY22, respectively to the revenue from operations. A decline in SLCM sales or reduced demand for concrete equipment could negatively impact the company’s business and financial condition.
All assembling and manufacturing facilities are located in Karnataka. As of September 30, 2024, the company has four operational facilities, with an additional facility under construction in Karnataka. This exposes the company to regional risks. Therefore, any adverse developments in this region could affect operations and overall business performance.
The Obadenahalli facility is responsible for assembling nearly all SLCMs, accounting for 99.06%, 98.83%, 98.41%, and 96.98% of total production for the six months ending September 30, 2024, and in FY24, FY23, and FY22, respectively. Any interruptions or shutdowns at this facility could have an adverse impact on business operations and financial performance.
The company relies on its dealer network for product sales, distribution, and after-sales service. The top 10 dealers contributed 51.77%, 50.13%, 50.51%, 48.89%, and 44.10% of revenue from operations for the six months ending September 30, 2024, and September 30, 2023, as well as in FY24, FY23, and FY22, respectively. Any disruption in the dealer network could negatively affect the company’s finances and operations.
The company, its directors and promoters are currently involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

Ajax Engineering Financials

*All values are in Rs. Cr
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Application Details of Ajax Engineering IPO

Apply asPrice bandApply upto
Regular599 - 629₹2 Lakh
Employee540 - 570₹2 Lakh
High Networth Individual599 - 629₹2 - 5 Lakh
For Ajax Engineering IPO, eligible investors can apply as Regular & Employee.