Ajax Engineering Limited, a prominent Indian manufacturer of concrete equipment, is launching its Ajax Engineering Ltd IPO with the following details:
Azad Engineering Limited was founded by Rakesh Chopdar in 2008. He currently serves as the Chairman and Chief Executive Officer of the company.
- IPO Opening Date: February 10, 2025
- IPO Closing Date: February 12, 2025
- Allotment Date: February 13, 2025
- Listing Date: February 17, 2025
- Price Band: ₹599 to ₹629 per equity share
- Offer for Sale: 2.02 crore shares
- Face Value: ₹1 per share
- Lot Size: 23 shares per lot
- Total Issue Size: 20,180,446 equity shares, aggregating up to ₹1,269.35 crores
- Listing Exchanges: BSE and NSE
About Ajax Engineering Ltd
Ajax Engineering Limited, established in 1992, is a prominent Indian manufacturer specializing in concrete equipment. The company is renowned for its engineering expertise and comprehensive after-sales support network, positioning it as a world-class leader in providing concrete business solutions.
Product Portfolio:
Ajax offers a diverse range of products, including:
- Self-Loading Concrete Mixers (SLCMs)
- Concrete Batching Plants
- Transit Mixers
- Stationary Pumps
- Boom Pumps
- Self-Propelled Boom Pumps
- Slip-Form Pavers
These offerings provide end-to-end solutions encompassing the production, transport, placement, and pavement of concrete.
Manufacturing Facilities:
Headquartered in Bangalore, Ajax operates state-of-the-art manufacturing facilities in Doddaballapur and Gowribidanur, Karnataka. These facilities are equipped with advanced technology to ensure high-quality production standards.
Market Leadership:
Ajax is recognized as the global leader in Self-Loading Concrete Mixers, with over 25,000 deliveries worldwide. The company’s commitment to innovation and customer-centric solutions has solidified its position in the concreting industry.
Service and Support:
Ajax’s extensive support network spans across India, ensuring timely service for its customers. The company offers round-the-clock customer care and delivers original, genuine spare parts with a guarantee, aiming to maximize machine availability and enhance customer satisfaction.
Ajax Engineering Ltd IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 23 | ₹14,467 |
| Retail (Maximum) | 13 | 299 | ₹1,88,071 |
| S-HNI (Minimum) | 14 | 322 | ₹2,02,538 |
| S-HNI (Maximum) | 69 | 1,527 | ₹9,98,223 |
| B-HNI (Minimum) | 70 | 1,610 | ₹10,12,690 |
Category Reservation Detail Table
Here is the category-wise reservation details for the Ajax Engineering Ltd IPO:
| Investor Category | Shares Reserved | Percentage of Issue |
| Qualified Institutional Buyers (QIBs) | 50% of the issue | 50% |
| Non-Institutional Investors (NIIs) (HNI Category) | 15% of the issue | 15% |
| Retail Individual Investors (RIIs) | 35% of the issue | 35% |
| Employees (if applicable) | TBD | TBD |
- Retail investors are allowed to apply up to a maximum of
- ₹2,00,000.HNI (NII) investors can apply for amounts above ₹2,00,000.
- QIBs include institutional investors such as mutual funds, banks, and insurance companies.
Ajax Engineering Limited Financial Information
Ajax Engineering Limited has demonstrated significant financial growth in recent years. Below is a summary of key financial metrics:
| Financial Metric | 2022 | 2023 | 2024 |
| Operating Revenue | Over ₹500 crore | Over ₹500 crore | Over ₹500 crore |
| EBITDA Growth | N/A | 88.71% increase over previous year | Data not available |
| Net Worth Growth | N/A | 23.44% increase over previous year | Data not available |
These financial indicators reflect Ajax Engineering’s robust performance and upward trajectory in the concrete equipment manufacturing sector.
Key Performance Indicator
| KPI | Values |
| ROE | 24.53% |
| ROCE | 32.82% |
| Debt/Equity | 0.01 |
| RoNW | 19.39% |
| PAT Margin | 12.65 |
| Price to Book Value | 7.84 |
Ajax Engineering Ltd Returns
| Details | Information |
| Assets | ₹1,236.14 crore |
| Revenue | ₹1,780.07 crore |
| Profit After Tax (PAT) | ₹225.15 crore |
| Net Worth | ₹917.96 crore |
| Reserves and Surplus | ₹906.52 crore |
| Total Borrowing | ₹6.23 crore |
| Market Position | Over 70% market share in self-loading concrete mixer segment |
| Manufacturing Facilities | 4 manufacturing facilities in Karnataka |
| Distribution Network | 51 dealerships across 23 states, 114 touchpoints |
| Minimum Investment | ₹14,467 (in lots of 23 shares) |
Ajax Engineering Ltd Growth
Here’s a breakdown of Ajax Engineering Ltd’s growth, presented in a table:
| Growth Aspect | Details |
| Market Share | Consistently over 70% in the self-loading concrete mixer segment in India |
| Revenue Growth (FY 2024) | ₹1,780.07 crore |
| Profit After Tax (PAT) Growth | ₹225.15 crore |
| Net Worth | ₹917.96 crore |
| Assets Growth (FY 2024) | ₹1,236.14 crore |
| Number of Manufacturing Facilities | 4 major facilities across Karnataka |
| Dealership Network | 51 dealerships across 23 states in India |
| Touchpoints (Service & Sales) | 114 touchpoints, including 51 headquarters and 63 branches (34 service centers) |
| IPO Plans | Planning for an IPO, expected to raise ₹1,269.35 crore to support expansion |
| Expansion Strategy | Expanding production capacities and enhancing market reach across India |
Strengths of Ajax Engineering Ltd IPO
Market Leadership: Ajax Engineering holds a dominant position in the Indian market with over 70% market share in the self-loading concrete mixer segment.
Strong Financial Performance: With a revenue of ₹1,780.07 crore and a PAT of ₹225.15 crore (FY 2024), Ajax Engineering shows strong financial growth.
Expanding Distribution Network: The company operates a robust distribution network with 51 dealerships and 114 touchpoints across India, ensuring widespread market reach.
Established Manufacturing Base: Ajax has four manufacturing facilities in Karnataka, allowing efficient production and better control over product quality
IPO Fund Utilization: The IPO will raise ₹1,269.35 crore, which can be used for expansion plans, further strengthening the company’s market position.
Strong Track Record: Ajax Engineering has been operating successfully since 1992, giving it a solid reputation in the concrete equipment manufacturing sector.
Risks of Ajax Engineering Ltd IPO
Dependency on the Construction Sector: The company’s growth is closely tied to the performance of the construction and infrastructure sectors, which can be cyclical and affected by economic conditions.
Intense Competition: Ajax Engineering faces stiff competition from both local and international players in the concrete equipment market, which could impact its market share and profitability.
Rising Raw Material Costs: The cost of key raw materials for manufacturing (e.g., steel and cement) may fluctuate, potentially squeezing margins.
Regulatory Risks: Changes in government policies, such as environmental regulations or labor laws, could impact operations.
Execution Risk: While the company has plans for expansion, the execution of such plans could face delays or challenges, affecting overall growth.
Limited International Presence: Ajax’s primary market is in India, and its international expansion is limited, which could constrain growth opportunities in global markets.
Ajax Engineering Ltd IPO Objectives
| Objective | Details |
| Expansion of Manufacturing Capacity | A portion of the funds will be used to enhance production facilities to meet increasing demand for Ajax’s products. |
| Repayment of Borrowings | The company plans to use the proceeds to reduce its debt, improving its financial stability and lowering interest expenses. |
| Working Capital Requirements | Funds will be allocated to strengthen working capital, ensuring smoother day-to-day operations, raw material procurement, and inventory management. |
| Strengthening Sales and Distribution Network | Investment in expanding the sales and distribution network to penetrate more regions within India, strengthening its market reach. |
| General Corporate Purposes | The IPO proceeds may also be used for other corporate purposes, such as marketing, research, and further development of its product range. |
Ajax Engineering IPO Lead Manager
The lead managers for the Ajax Engineering Ltd IPO are key players who help manage and execute the IPO process. The lead managers are:
| Lead Manager | Details |
| ICICI Securities Ltd. | A prominent investment bank with expertise in IPO management and underwriting. |
| Kotak Mahindra Capital Company Ltd. | One of the leading investment banks in India, known for managing high-profile IPOs. |
| IIFL Securities Ltd. | A well-established financial services firm with a strong presence in equity markets. |
These lead managers will handle tasks such as pricing, marketing, and coordinating with regulators to ensure the smooth launch of the IPO.
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