| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 599 to ₹ 629 | 23 | 10th Feb, 2025 – 12th Feb, 2025 | ₹ 1,269.35 Cr |
About Ajax Engineering Limited IPO
Ajax Engineering Ltd. is a leading concrete equipment manufacturer offering a comprehensive range of concrete equipment services and solutions across the value chain. Its product portfolio includes over 141 concrete equipment variants catering to various needs within the concrete application value chain. Over the last ten years, the company has sold over 29,800 concrete equipment units in India. The company’s concrete equipment is used in diverse applications and is deployed across transportation, irrigation, and infrastructure projects. In addition to its SLCM portfolio, the company offers a large and diverse range of non-SLCM equipment, including batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, self-propelled boom pumps for concrete placement, and slip-form pavers that cater to various aspects of the concrete production, transportation, placement, and paving processes. One of the company’s significant innovations is the SLCM equipped with load cell technology, ensuring quality assurance in concrete production. This innovation has been recognized by the Legal Metrology Department of the Government of India and is now widely used by government departments such as the Public Works Department, Irrigation Department, and Border Roads Organization. In 2019, the company introduced its patented self-propelled boom pump mounted on a 4×4 chassis, designed to combine mobility and flexibility for efficient concrete placement at varying heights and distances. Ajax Engineering operates four assembly and manufacturing facilities located at Obadenahalli, Gowribidanur, Basethahalli, and Adinarayanahosahalli in Karnataka, with each facility specializing in distinct product lines. The company sells its equipment through a network of dealers in India and internationally to a diverse range of customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction firms, and government construction agencies.
Objective of the Ajax Engineering Limited IPO
The company will not receive any proceeds from the offer.
Rationale To Ajax Engineering Limited IPO
Dominant market leader with a diversified portfolio, indicating a strong growth potential
Ajax Engineering is a leading manufacturer of SLCMs in India, holding an approximate market share of 75%. The company also offers a comprehensive range of 141 concrete equipment variants, services, and solutions across the concrete application value chain. Its product portfolio includes SLCMs, batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, self-propelled boom pumps for concrete placement, slip-form pavers for concrete paving, and 3D concrete printers for depositing concrete. Over the last ten years, Ajax Engineering has sold more than 29,800 concrete equipment units, the largest sales volume among leading concrete equipment companies in India during this period. Its SLCMs are known for commanding the highest resale value in India, attributed to factors such as first-mover advantage, high product quality and reliability, and strong after-sales service. The SLCMs sold under its ‘Agro’ brand are designed with varying drum outputs ranging from 1.0 to 4.8 cubic meters per batch, catering to a wide range of industrial uses, including mid-scale and smaller infrastructure projects. The growing focus on infrastructure development in India is expected to drive significant demand for mechanized concrete equipment, positioning Ajax Engineering well to supply a diverse range of products capable of efficiently handling small to large-scale construction projects. Additionally, the company has been leveraging its leadership position in the SLCM market to expand its non-SLCM equipment sales. This is being achieved through targeted initiatives such as deploying a dedicated team for the non-SLCM business, utilizing its extensive dealer network for non-SLCM sales, and launching educational and sales campaigns to highlight the benefits of these products to its customers.
Extensive dealer network driving customer satisfaction and sales growth
Over the past three financial years, the company has adopted a dealer-led distribution and service model. Its extensive dealer network consists of 51 dealerships across 23 states in India, providing customer access through 114 touchpoints, including 51 dealer headquarters and 63 branches, of which 34 also serve as service centers. As of September 30, 2024, this is the largest dealer network among leading concrete equipment companies in India in terms of the number of dealers and service touchpoints. The company has established longstanding relationships with its dealers, all of whom are exclusive to the concrete equipment market. Its equipment is sold to a diverse range of end customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction firms, and government construction agencies. All branches and service centers are managed and operated by its dealers, ensuring the availability of spare parts and enhancing customer satisfaction. To support its dealers, the company provides a range of operational assistance, including training programs, financing support, and sales incentives. Through its ‘Ajax Dealer Excellence Model,’ the company conducts initiatives to ensure dealer staff are well-equipped to assist customers and rewards dealers based on performance benchmarks and incentive parameters. The company has also maintained strong relationships with its customers, reflecting its ability to meet the diverse needs of various sectors within the construction industry. Its broad yet targeted customer base enables it to develop an efficient and stable business model, presenting significant potential for further sales growth.
Valuation of Ajax Engineering Limited IPO
Ajax Engineering Ltd. is a leading concrete equipment manufacturer with a diverse product portfolio that includes SLCMs, batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, self-propelled boom pumps for concrete placement, slip-form pavers for concrete paving, and 3D concrete printers for depositing concrete. The company holds an approximate 75% market share in SLCMs in India and has sold the largest number of manufacturing equipment, which also commands the highest resale value among its peers. The concrete equipment market in India, particularly for SLCMs, is experiencing significant growth driven by several factors, including increasing cement consumption and rising public and private capital expenditure in infrastructure, irrigation, housing, and renewable power projects, leading to higher demand for construction materials and equipment. Ajax Engineering has established a robust dealer-led distribution and service model, comprising 51 dealers across 23 states, and serves a diverse base of end customers across specialized sectors such as transportation infrastructure, irrigation, and large-scale infrastructure projects. On the financial front, the company has delivered strong performance, with revenue growing at a CAGR of 51% from FY22 to FY24. During the same period, its EBITDA and PAT grew at an impressive CAGR of 74.5% and 84.4%, respectively. The issue is priced at a P/E ratio of 32.1x at the upper price band based on FY24 earnings, which is comparatively lower than its industry peers. Given the company’s strong financial performance, favorable industry growth drivers, and attractive valuation, we recommend a “SUBSCRIBE” rating for this issue.
What is the Ajax Engineering Limited IPO?
Ajax Engineering IPO is a book built issue of Rs 1,269.35 crores. The issue is entirely an offer for sale of 2.02 crore shares. Login to your account now.
How to apply for the Ajax Engineering Limited IPO through StoxBox?
To apply for the Ajax Engineering Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Ajax Engineering Limited IPO open?
Ajax Engineering Limited IPO is opening on 10th February 2025. Apply Now
What is the lot size of the Ajax Engineering Limited IPO?
The Lot Size of Ajax Engineering Limited IPO is 23 equity shares. Login to your account now.
When is the Ajax Engineering Limited IPO allotment date?
The allotment Date for Ajax Engineering Limited IPO is 13th February 2025. Login to your account now.
When is the Ajax Engineering Limited IPO listing date?
The listing Date for Ajax Engineering Limited IPO is 17th February 2025. Login to your account now
What is the minimum investment required for the Ajax Engineering Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,070. Login to your account now
What is the maximum investment allowed for the Ajax Engineering Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 188,071. Login to your account now
What are the risks associated with investing in the Ajax Engineering Limited IPO?
- The concrete equipment industry is cyclical in nature, and any decrease in sales during certain quarters, fluctuations in material prices, or disruptions in the timely availability of materials could adversely affect the company’s business, results of operations, financial condition, and cash flows.
- The company’s business has grown rapidly, but it may not be able to sustain its historical growth rates in the future. Any inability to effectively manage growth or execute its growth strategy in a timely manner or within budget estimates could adversely affect its business, results of operations, financial condition, and cash flows.
- The company currently assembles all of its SCLMs substantially at the Obadenahalli facility, accounting for approximately 96%-99% of its total SCLM production. Any disruptions or stoppages at this facility or other facilities could adversely impact its operations, financial condition, and results of operations.
When will the Ajax Engineering Limited IPO shares be credited to my Demat account?
The Ajax Engineering Limited IPO be credited to the account on allotment date which is 14th February 2025. Login to your account now
Where can I find the Ajax Engineering Limited IPO prospectus?
The prospectus of Ajax Engineering Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Ajax Engineering Limited IPO?
| IPO Open Date | Monday, February 10, 2025 |
| IPO Close Date | Wednesday, February 12, 2025 |
| Basis of Allotment | Thursday, February 13, 202 |
| Initiation of Refunds | Friday, February 14, 2025 |
| Credit of Shares to Demat | Friday, February 14, 2025 |
| Listing Date | Monday, February 17, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 12, 2025 |
