Ajax Engineering Limited, a leading manufacturer of concrete equipment, is set to launch its IPO on February 10, 2025. With a price band of ₹599-₹629 per share and a total issue size of ₹1,269.35 crores, the IPO is generating interest among investors. But is it worth your money? Let’s break it down.
About Ajax Engineering Limited
Founded in 1992, Bengaluru-based Ajax Engineering Limited is a market leader in the self-loading concrete mixer (SLCM) segment, holding 75% market share in India. The company designs and manufactures a wide range of concrete equipment, including batching plants, transit mixers, concrete pumps, boom pumps, slipform pavers, and 3D concrete printers. Over the years, Ajax has sold more than 29,800 units in India and built a strong global presence in South and Southeast Asia, the Middle East, and Africa.
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Why is Ajax Engineering going public?
Unlike some IPOs that raise fresh capital, Ajax Engineering’s IPO is an offer-for-sale (OFS). This means that the company itself will not receive any funds from the IPO. Instead, existing shareholders, including Kedaara Capital and the company’s promoters, are selling their stakes. Kedaara Capital, which holds 6.5% equity (74.37 lakh shares), will be completely exiting the company through this offering.
Current status of Ajax Engineering
Ajax Engineering has four manufacturing facilities in Karnataka, with an additional facility under construction in Adinarayanahosahalli, expected to be operational by August 2025. The company has a widespread distribution network, with 51 dealerships and 114 touchpoints across 23 states in India.
With a strong order book and steady expansion, the company reported a profit after tax (PAT) of ₹225.15 crore in FY24, demonstrating significant growth compared to previous years.
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Financial performance of Ajax Engineering Limited
| Financial Year | Revenue (₹ Crore) | PAT (₹ Crore) | Net Worth (₹ Crore) |
| FY22 | 771.85 | 66.21 | 578.27 |
| FY23 | 1,172.57 | 135.9 | 713.8 |
| FY24 | 1,780.07 | 225.15 | 917.96 |
Ajax Engineering IPO details
| IPO Date | February 10, 2025 – February 12, 2025 |
| Price Band | ₹599 – ₹629 per share |
| Issue Size | ₹1,269.35 Cr |
| Lot Size | 23 shares |
| Total Shares Offered | 2,01,80,446 shares |
| Type of Issue | Book Built Issue IPO |
| Listing Exchange | BSE, NSE |
| Employee Discount | ₹59 per share |
| Listing Date | February 17, 2025 (tentative) |
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Should you invest in the Ajax Engineering IPO?
Advantages
Market leadership: With 75% market share in India’s SLCM segment, Ajax Engineering has a dominant position.
Consistent growth: Revenue grew from ₹771.85 crore in FY22 to ₹1,780.07 crore in FY24, showing strong financial performance.
Asset-light model: With a low debt-equity ratio of 0.01, the company has strong financial health.
Expanding presence: Ajax is growing beyond India, with 25 dealers in South and Southeast Asia, the Middle East, and Africa.
Attractive financials: The company has an ROE of 24.53% and ROCE of 32.82%, making it fundamentally strong.
Disadvantages
No fresh capital infusion: Since the IPO is entirely an OFS, the company won’t receive funds for expansion or debt reduction.
High valuation: With a P/E ratio of 31.96, the stock is priced at a premium.
Dependency on infrastructure growth: Ajax’s success depends on sustained demand for concrete equipment, which is linked to government spending on infrastructure.
Bottomline
Ajax Engineering’s IPO presents an opportunity to invest in a market leader with strong financials. However, since the IPO is purely an OFS, investors should consider if the valuation justifies the potential returns. If you’re betting on India’s infrastructure growth and trust Ajax’s leadership, this IPO might be worth considering—but only at the right price.
