Ajax Engineering IPO: Ajax Engineering, a concrete tools producer backed by Kedaara Capital, will launch its preliminary public providing (IPO) for public subscription from February 10 to 12. Moreover, the bidding course of for anchor traders will happen for at some point on February 7, as introduced by the corporate.
The Bengaluru-based agency has set a value band of ₹599 to ₹629 per share for its IPO, which is valued at ₹1,269 crore. The IPO consists totally of an offer-for-sale (OFS) of two.01 crore shares by its promoters and an investor stakeholder, amounting to ₹1,269 crore on the highest value level.
As a part of the OFS, Kedaara Capital plans to promote 74.37 lakh shares. Since this public providing is totally an OFS, Ajax Engineering won’t obtain any funds from the IPO.
On the higher finish of the value vary, the corporate’s market capitalisation is estimated to be ₹7,200 crore. The ebook working lead managers for the problem embrace ICICI Securities, Citigroup International Markets India, JM Monetary, Nuvama Wealth Administration, and SBI Capital Markets.
Listed below are 10 key issues from the Purple Herring Prospectus (RHP) that traders would possibly need to know earlier than subscribing to the problem.
Ajax Engineering IPO Promoters
The corporate’s promoters embrace Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Madhuri Vijay, Prashanth Vijay, Rachel Rekha Hansen, Savitha Christeena Alexander, Sean Alexander, Inexperienced Haven Belief, Ohana Belief, Jacob Hansen Household Belief, and The Johns Loaves Belief. The promoters collectively personal 100,537,600 fairness shares, which account for 87.88% of the corporate’s complete issued, subscribed, and paid-up fairness share capital.
Ajax Engineering IPO Friends
The corporate’s listed friends are Motion Building Gear Ltd (with a P/E of 46.13), BEML (with a P/E of 54.24), and Escorts Kubota Ltd (with a P/E of 35.73).
Ajax Engineering enterprise
The organisation stands out as a prime producer of concrete tools, providing an in depth array of merchandise, companies, and options all through the concrete software worth chain, in keeping with the Redseer Report. By September 30, 2024, the corporate has created greater than 141 completely different variants of concrete tools that tackle the wants of the concrete software worth chain, and previously decade, they’ve bought upwards of 29,800 concrete tools models in India.
Ajax Engineering Business
The Indian marketplace for concreting tools is notably fragmented and casual, reflecting the varied sorts of tools and the completely different scales of initiatives carried out throughout the nation. Concreting tools consists of each handbook and mechanised means for producing and distributing concrete, which is crucial for the development business. As of FY 2024, roughly 25% of the concrete utilised in India is processed via mechanised concreting tools (excluding handbook mixers), a rise from round 16% in FY 2019.
Ajax Engineering Services
As of September 30, 2024, Ajax Engineering Restricted operates 4 places in Karnataka, located in Obadenahalli, Gowribidanur, and Bashettihalli, with every website specializing in distinct merchandise, notably the ability in Obadenahalli.
Ajax Engineering Clients
As of September 30, 2024, the corporate has bought concrete tools and spare components, and has constructed relationships with over 19,000 prospects, up from greater than 15,700 prospects as of March 31, 2024, over 12,100 prospects as of March 31, 2023, and greater than 11,100 prospects as of March 31, 2022.
Their substantial but centered buyer base permits them to determine a sturdy and dependable enterprise mannequin, whereas additionally providing appreciable alternatives for additional gross sales development. Within the Monetary Years 2024, 2023, and 2022, no particular person end-customer accounted for greater than 5.00% of their income from operations.
Ajax Engineering Group Firm
The corporate has recognised Surin Automotive Personal Restricted as one in all its Group Corporations, as per the RHP.
Ajax Engineering IPO Key Dangers
A number of the key dangers are as follows;
- All the firm’s meeting and manufacturing operations are located in Karnataka, which might expose them to regional dangers which may negatively impression their enterprise, operational outcomes, monetary standing, and money flows.
- The corporate has skilled speedy development, they usually could battle to take care of their historic development charges transferring ahead. Any failure to successfully handle their development or to execute their development technique promptly, or inside budgetary constraints, might adversely have an effect on their enterprise, operational outcomes, monetary standing, and money flows.
Ajax Engineering Financials
Ajax Engineering introduced its income from operations for FY24 at ₹1,741 crore, with a revenue after tax (PAT) amounting to ₹225 crore.
Lock-in of fairness shares allotted to anchor traders
A lock-in interval of 90 days will apply to 50% of the fairness shares allotted to the anchor traders ranging from the date of allotment, whereas the remaining 50% of the fairness shares allotted to the anchor traders may have a lock-in interval of 30 days starting from the date of allotment.
Disclaimer: The views and suggestions above are these of particular person analysts, specialists and broking firms, not of Mint. We advise traders to test with licensed specialists earlier than making any funding resolution.
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