Ajax Engineering Share Price Highlights: Stock ends at ₹593.40 apiece on NSE, nearly 6% discount to IPO price

Ajax Engineering share price ended listing day at ₹593.40 on NSE, a 5.66% discount to the IPO price of ₹629, and at ₹595.60 on BSE, a 5.31% discount.

As of September 30, 2024, the company has sold concrete equipment and spare parts, and has built relationships with over 19,000 customers, up from more than 15,700 customers as of March 31, 2024, over 12,100 customers as of March 31, 2023, and more than 11,100 customers as of March 31, 2022.

Their substantial yet focused customer base allows them to establish a robust and reliable business model, while also offering considerable opportunities for further sales growth. In the Financial Years 2024, 2023, and 2022, no individual end-customer accounted for more than 5.00% of their revenue from operations.

• Market leader in a large and fast-growing SLCM market
• Leading concrete equipment company with over 141 concrete equipment variations, and offering services and solutions across the concrete application value chain
• Engineering-focused concrete equipment company with strong in-house design and development capabilities
• Technology-led assembly and manufacturing processes and robust supplier network

• Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
• Carry out the Offer for Sale of up to 20,180,446 equity shares.

The stock was trading at ₹591.05 per share on NSE, marking a 2.61% increase at 13:50 IST, and at ₹591.65 per share on BSE, showing a 0.23% decline.

The portfolio includes self-loading concrete mixers (SLCMs) and batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, and self-propelled boom pumps for concrete placement. Additionally, it features slip-form pavers for concrete paving and 3D concrete printers for concrete deposition.

The company boasts 51 dealerships across 23 states in India, providing 114 touchpoints, which include 51 headquarters and 63 branches, 34 of which also function as service centers.

“Ajax Engineering's IPO made underwhelming a debut on February 17, 2025, listing at a discount due to declining grey market premiums (GMP) and weak investor demand. The GMP fell sharply from ₹52 to ₹10 before the listing, reflecting market volatility and subdued sentiment. Tepid investor interest and fluctuating premiums signaled a lackluster reception, contributing to the discounted opening, ” said Satish Chandra Aluri, Research Analyst at Lemonn Markets Desk.

The company has recognised Surin Automotive Private Limited as one of its Group Companies, as per the RHP.

A lock-in duration of 90 days will be imposed on 50% of the equity shares given to the anchor investors, starting from the allotment date, whereas the other 50% of the equity shares allotted to the anchor investors will have a lock-in period of 30 days commencing from the date of allotment.

Ajax Engineering Limited operates four facilities in Karnataka, located in Obadenahalli, Gowribidanur, and Bashettihalli, each specializing in various products, with a particular emphasis on the Obadenahalli facility.

• 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.

• Dominant market leader with a diversified portfolio, indicating a strong growth potential.
• Extensive dealer network driving customer satisfaction and sales growth.

The stock was trading at ₹581.40 per share on NSE, marking a 0.94% increase at 11:19 IST, and at ₹582.40 per share on BSE, showing a nearly 2% decline.

Ajax Engineering IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹59 per equity share is being offered to eligible employees bidding in the employee reservation portion.

The company based in Bengaluru set a price band of ₹599-629 per share for its initial share sale, which is valued at ₹1,269 crore. The IPO consists entirely of an offer-for-sale (OFS) of 2.01 crore shares, amounting to ₹1,269 crore at the highest price point, from its promoters and an investor shareholder. As the public offering is entirely an OFS, Ajax Engineering will not obtain any funds from the IPO.

Given market turbulence, Ajax Engineering listing was well below street estimations of flat listing. It had well managed to sail out successfully from investors across all categories.

Despite weaker openings, we continue to remain optimistic, given the company’s virtual monopoly in SLCM and increasing infrastructure development in India with rising demand for automated concrete solutions, we believe Ajax is well-positioned for catering to India’s booming construction and infrastructure sector. Hence, looking at all the positive long term attributes we recommend investors to “HOLD” for Ajax Engineering Ltd IPO for a long term basis.

Considering the market trend, those who wish to accumulate the dip should wait and watch for better discounted prices in this market scenario.

The stock was trading at ₹575 per share on NSE, marking a 0.17% decrease at 10:17 IST, and at ₹576.35 per share on BSE, showing a nearly 2.81% decline.

Ajax Engineering share price made a weak debut on the bourses today. On NSE, Ajax Engineering share price opened at ₹576 per share, 8.4% lower than the issue price of ₹629. On BSE, Ajax Engineering share price today opened at ₹593 apiece, down 5.72% than the issue price.

Ajax Engineering, a concrete equipment manufacturer backed by Kedaara Capital, successfully raised over ₹379 crore from a group of anchor investors just ahead of its upcoming initial public offering (IPO). Some prominent participants in this allocation include SBI Mutual Fund, Axis Mutual Fund, HSBC Mutual Fund, Edelweiss Mutual Fund, ITI Mutual Fund, Amundi Funds New Silk Road, and Franklin Templeton Investment Funds, as detailed in a circular on the BSE's website.

The Ajax Engineering IPO was completely subscribed on the final day of bidding on Wednesday, concluding the three-day offering with a subscription rate of 6.45 times. The segment allocated for Qualified Institutional Buyers (QIBs) achieved a subscription rate of 14.41 times, while the portion designated for non-institutional investors was subscribed 6.47 times. The category for Retail Individual Investors (RIIs) saw a subscription rate of 1.93 times.

“Given the company’s virtual monopoly in SLCM and increasing infrastructure development in India with rising demand for automated concrete solutions, we believe Ajax is well-positioned for catering to India’s booming construction and infrastructure sector. Hence, looking at all attributes we recommend investors to “HOLD” for Ajax Engineering Ltd IPO for a long term basis,” said Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities Ltd

Ajax Engineering IPO GMP today or Ajax IPO GMP is -3. This indicates Ajax Engineering share price was trading at a discount of ₹3 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current discount in the grey market, the estimated listing price of Ajax Engineering share price was indicated at ₹626 apiece, which is 0.48% lower than the IPO price of ₹629 .

According to the activities observed in the grey market over the past 14 sessions, the current IPO GMP indicates a trend towards a discount, and a discounted listing is anticipated. The minimum GMP recorded is ₹-3.00, while the maximum GMP stands at ₹58, as noted by experts from investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.