Ajax Engineering IPO: Kedaara Capital-backed firm raises over ₹379 crore from anchor investors ahead of public issue

Concrete equipment manufacturer Ajax Engineering, backed by Kedaara Capital, mobilised more than ₹379 crore from anchor investors days before its initial share-sale opening for public subscription.

The anchor investors who have been allocated the shares are SBI Mutual Fund (MF), Axis MF, HSBC MF, Edelweiss MF, ITI MF, Amundi Funds New Silk Road and Franklin Templeton Investment Funds, according to a circular uploaded on BSE's website.

The company has allocated 60.3 lakh shares to 23 funds at ₹629 per share, which is the upper end of the IPO price band. Hence, it aggregates the transaction size to ₹379.3 crore.

The initial share sale of ₹1,269 crore for the Bengaluru-based company will open for public subscription from February 10 to 12. The price band has been set from ₹599 to ₹629 per share.

Ajax Engineering's initial public offering (IPO) is a complete offer-for-sale (OFS) of 2.01 crore shares, valued at ₹1,269 crore at the top of the price range, by its promoters and an investor shareholder.

Kedaara Capital will offload 74.37 lakh shares as a part of its OFS.

Ajax Engineering will not receive any proceeds from the IPO as the public issue is completely an OFS.

At the upper end of the price band, the company's market capitalisation has been valued at ₹7,200 crore.

Ajax Engineering is a concrete equipment manufacturer that offers related equipment, services, and solutions. The company currently has four assembling and manufacturing facilities in Karnataka, each specialising in a different product range. In addition to these units, an assembling and manufacturing facility at Adinarayanahosahalli, Karnataka, is under construction and is expected to become operational in August 2025.

In FY24, the company reported revenue from operations at ₹1,741 crore with a profit after tax (PAT) of ₹225 crore.

The book running lead managers to the issue are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management and SBI Capital Markets.