Ajax Engineering IPO listing: Shares list at 6% discount on BSE, 8% on NSE

Ajax Engineering shares listed at Rs 593 per share on the BSE and Rs 576 per share on the NSE, against the IPO issue price of Rs 629

Ajax Engineering IPO listing: Shares of concrete equipment maker Ajax Engineering made a disappointing debut on the stock exchanges on Monday, February 17, 2025. On the BSE, Ajax Engineering shares listed at Rs 593 per share, reflecting a 5.72 per cent discount from the IPO issue price of Rs 629.

 

Similarly, on the National Stock Exchange (NSE), Ajax Engineering shares listed at a discount of 8.42 per cent, at Rs 576 per share, against the IPO issue price.

 

The listing of Ajax Engineering IPO also mirrors trends in the grey markets. Ahead of the listing, the company’s unlisted shares were trading at a discount in the grey markets. The shares were quoted at around Rs 626 each, reflecting a discount of Rs 3, or 0.48 per cent, from the issue price band of Rs 629, according to sources tracking grey market activity. 

"Given the market turbulence, Ajax Engineering's listing was well below street estimations of a flat listing. However, it has managed to sail through successfully, attracting investors from all categories," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

 

 

Despite the weaker opening, Tapse remains optimistic, citing the company’s virtual monopoly in SLCM and the increasing infrastructure development in India, which is driving the demand for automated concrete solutions. He believes Ajax is well-positioned to cater to India’s booming construction and infrastructure sector.  "Therefore, considering all the positive long-term attributes, we recommend investors to 'hold' the Ajax Engineering IPO for the long term. Given the current market trend, those who wish to accumulate during the dip should wait and watch for better discounted prices in this market scenario," said Tapse.

 

The allotment for Ajax Engineering IPO shares, which were offered within a price band of Rs 599-629 per share, with a lot size of 23 shares, was finalized on Friday, February 14, 2025. Valued at approximately Rs 1,269 crore, the Ajax Engineering IPO comprises an entirely Offer for Sale (OFS) of 2,01,80,446 equity shares with a face value of Rs 10 each, totaling around Rs 229.75 crore. The company has fixed the issue price at Rs 629.  READ: Hexaware Technologies IPO Allotment Status

 

The public issue saw decent demand from investors, with the IPO being subscribed 6.45 times by the final day of subscription. The highest demand came from Qualified Institutional Buyers (QIBs), whose bids were oversubscribed 14.41 times the reserved quota. This was followed by Non-Institutional Investors (NIIs), who bid for 6.47 times their allocated quota, and Retail Individual Investors (RIIs), who subscribed to 1.93 times.

 

Notably, Ajax Engineering, as stated in the Red Herring Prospectus (RHP), will not receive any proceeds from the offer. "Each of the Selling Shareholders will be entitled to their respective proportion of proceeds from the Offer for Sale, after deducting their portion of the offer-related expenses and the relevant taxes thereon," the company mentioned in the RHP.

 

Link Intime India serves as the registrar for the issue, while the book-running lead managers for the Ajax Engineering IPO include ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.

 

Ajax Engineering is a manufacturer of concrete equipment, offering a wide range of products and solutions, including Self-Loading Concrete Mixers (SLCMs), batching plants, transit mixers, boom pumps, slip-form pavers, and 3D concrete printers. The company holds an approximate 77 per cent market share in the SLCM segment for the six months ending September 30, 2024. It operates four manufacturing facilities in Karnataka, including the Obadenahalli plant, which spans 39,660 sq. meters and is among the largest SLCM facilities globally. Ajax is also the first Indian company to develop an in-house slip-form paver (2019) and to commercialise a 3D concrete printing machine (2023).