Ajax Engineering Limited, one of India’s leading concrete equipment manufacturers, recently launched its highly anticipated Initial Public Offering (IPO). With strong demand from institutional and retail investors, the IPO has generated significant buzz in the stock market. But the big question remains: Should you invest in Ajax Engineering IPO or wait?
In this article, we provide a detailed analysis of the company’s fundamentals, IPO subscription status, GMP (Grey Market Premium), risks, and future growth potential to help you make an informed decision.
1. Ajax Engineering IPO Details
- IPO Open Date: February 10, 2025
- IPO Close Date: February 12, 2025
- Issue Type: 100% Offer-for-Sale (OFS)
- Price Band: ₹599 – ₹629 per share
- Lot Size: 23 shares
- Total Issue Size: ₹1,269.35 crore
- Listing Date: February 17, 2025
- Exchanges: BSE & NSE
The IPO was entirely an offer-for-sale (OFS), meaning no fresh funds were raised for business expansion. Instead, existing shareholders sold their stake.
2. Ajax Engineering IPO Subscription & Allotment Status
The IPO received a strong response, with an overall subscription of 6.45 times:
- Qualified Institutional Buyers (QIBs): 14.41x
- Non-Institutional Investors (NIIs): 6.47x
- Retail Investors (RIIs): 1.93x
This indicates high demand from institutional investors, suggesting confidence in the company’s future. Retail participation was relatively lower, which could mean cautious sentiment among small investors.
Allotment Date: February 13, 2025
Listing Date: February 17, 2025
3. Ajax Engineering IPO GMP (Grey Market Premium)
As of today, Ajax Engineering IPO GMP is ₹75 per share, indicating a potential listing price of ₹704 (₹629 + ₹75).
However, GMP is unofficial and volatile, so investors should not rely solely on it for decision-making.
4. Ajax Engineering Financials & Growth Potential
Company Overview
Ajax Engineering is a market leader in self-loading concrete mixers and has a strong presence in India’s infrastructure and construction sector. With over 30 years of experience, it has built a wide customer base across government and private projects.
Key Financials (FY 2023-24)
| Metric | Value |
|---|---|
| Revenue | ₹3,500 crore |
| Net Profit | ₹420 crore |
| EBITDA Margin | 16.5% |
| Debt-to-Equity | 0.35x |
Growth Drivers
- Strong demand for construction equipment amid infrastructure push
- Market leadership in self-loading mixers and batching plants
- Healthy order book and revenue visibility
- Low debt levels, ensuring financial stability
5. Risks & Challenges
Before investing, consider these key risks:
✅ OFS Structure – Since the IPO is 100% OFS, no new funds will be used for expansion.
✅ Market Competition – Competes with global players like Schwing Stetter and Putzmeister.
✅ Economic Slowdown – Any slowdown in construction activity could impact growth.
✅ Valuation Concerns – At the upper price band of ₹629, the P/E ratio is 35x, which may be high compared to peers.
6. Expert Opinion: Should You Invest or Wait?
🔹 Short-Term Investors: Given the strong GMP and oversubscription, listing gains are expected. However, post-listing performance will depend on market sentiment.
🔹 Long-Term Investors: If you believe in the growth of the construction sector, Ajax Engineering can be a good long-term bet. But since it’s already fairly valued, waiting for a better entry point post-listing could be a wiser choice.
7. Final Verdict
Invest if:
✅ You are looking for listing gains
✅ You believe in India’s infrastructure growth story
✅ You prefer companies with strong financials and low debt
Wait if:
❌ You are looking for a high-growth, undervalued stock
❌ You are concerned about post-listing volatility
❌ You prefer companies that raise fresh capital for expansion
Conclusion
Ajax Engineering IPO has attracted strong investor interest, but whether you should invest or wait depends on your risk appetite. If you’re a short-term trader, listing gains look promising. But for long-term investors, waiting for a better entry point after listing could be a smarter move.
📢 What’s your take on Ajax Engineering IPO? Are you investing or waiting? Share your thoughts in the comments!
FAQs
💡 Q1: What is the listing date of Ajax Engineering IPO?
📌 Ajax Engineering shares are scheduled to be listed on February 17, 2025, on BSE & NSE.
💡 Q2: How can I check my Ajax Engineering IPO allotment status?
📌 You can check it on BSE, NSE, or the registrar’s website (Link Intime India Pvt Ltd).
💡 Q3: Will Ajax Engineering IPO give listing gains?
📌 Based on GMP trends, listing gains look likely, but market conditions will play a key role.
💡 Q4: Is Ajax Engineering a good long-term investment?
📌 It has strong fundamentals, but valuation is slightly high. Investors should wait for a better price post-listing.
