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Ajax Engineering IPO Day 2 GMP: Ajax Engineering IPO has been subscribed 35% on the second day of subscription today, at 12:00 IST, as per BSE data
Ajax Engineering IPO Day 2: Price, GMP, Lot Size & Everything You Need to Know
Ajax Engineering IPO Grey Market Premium: The initial public offer (IPO) of Ajax Engineering Ltd (AEL), a concrete equipment manufacturer backed by Kedaara Capital, opened for public subscription on Monday and will close on Wednesday. The IPO price range has been set between Rs 599 and Rs 629 per share.
Following the closure of the IPO on Wednesday, share allotment will be finalised on February 13 (Thursday), and the listing will take place on both the BSE and NSE on February 17.
36% Subscribed So Far
Ajax Engineering’s IPO has been subscribed 36% on the second day of the subscription period, as of 12:00 IST, according to BSE data.
The offer received bids for 51,42,616 shares, against the 1,41,49,997 shares available.
The retail investor portion has been subscribed 41%, while the non-institutional investor quota is 39% subscribed. The qualified institutional buyers (QIBs) portion is 26% subscribed. Additionally, the employee portion has seen a strong response, with 85% subscribed.
Ajax Engineering IPO Price & Lot Size: The IPO price range is Rs 599 to Rs 629 per share, with a minimum application lot size of 23 shares. The minimum investment required for retail investors is Rs 14,467. For small NII investors, the minimum lot size is 14 lots (322 shares), totaling Rs 2,02,538, while for large NII investors, the minimum lot size is 70 lots (1,610 shares), amounting to Rs 10,12,690.
Ajax Engineering IPO GMP Today
Ajax Engineering’s IPO Grey Market Premium (GMP) stands at Rs 16 today, according to investorgain.com. This suggests that the shares of Ajax Engineering are trading at a premium of Rs 16 in the grey market.
Based on the upper end of the IPO price band and the current grey market premium, the expected listing price for Ajax Engineering shares is Rs 645, which is 2.54% higher than the IPO price of Rs 629.
However, grey market activity over the past eight sessions shows that the current GMP of Rs 16 is trending lower.
Ajax Engineering IPO: Should You Apply?
Most brokerage firms have issued a ‘subscribe’ rating for the IPO.
KR Choksey – Subscribe:
KR Choksey, in its IPO note, assigned a ‘Subscribe’ rating, highlighting that AEL is reasonably priced compared to its peers and has solid financial performance, with a 51 per cent/84 per cent Revenue/PAT CAGR from FY22 to FY24. The company’s dominant market share, growth potential, and positive industry outlook make it an attractive investment.
Reliance Securities – Subscribe:
Reliance Securities analysts also recommend subscribing to the IPO, noting AEL’s first-mover advantage with the introduction of SLCMs in India. The company has strengthened its market position through high-quality products, strong after-sales service, and expanding both domestically and internationally. AEL’s strong financials and experienced management further support this recommendation.
Ajax Engineering IPO More Details:
The IPO is an entirely offer-for-sale (OFS) of 2.01 crore shares, valued at Rs 1,269 crore at the top of the price band, by its promoters and an investor shareholder. Kedaara Capital will offload 74.37 lakh shares in the OFS. Since this is a complete OFS, Ajax Engineering will not receive any funds from the IPO.
The company’s market capitalization is pegged at Rs 7,200 crore at the upper end of the price band.
Before the IPO, Ajax Engineering raised over Rs 379 crore from anchor investors, prior to the public subscription opening.
Ajax Engineering is a leading manufacturer of concrete equipment, offering a wide range of equipment, services, and solutions across the concrete application value chain. The company operates four manufacturing facilities in Karnataka and is building another facility in Adinarayanahosahalli, expected to be operational by August 2025.
For FY24, Ajax Engineering reported revenue from operations of Rs 1,741 crore and a profit after tax (PAT) of Rs 225 crore.
The book-running lead managers for the issue are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
