Ajax Engineering Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹629
Per ShareLot Size
23 Shares
Minimum Investment
₹14,467
Issue Size
₹1,269.35 Cr
Face Value
₹1
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Ajax Engineering Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
93.5%
Promoter Holding (Post-Issue)
82.36%
Issue Type
Book Building
ISIN
INE274Y01021
About the Company
Since its inception 32 years ago, the company has developed a product portfolio that includes equipment such as self-loading concrete mixers and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps and self-propelled boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete. It also continues to assist customers throughout the life of the equipment, and with that aim, it provides spare parts of the equipment sold by the company and facilitate the provision of after sales service by its dealers. Its equipment is sold through its dealers in and outside India to a diverse range of customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction companies and government construction agencies. As of September 30, 2024, its dealer network comprised of 51 dealerships across 23 states in India, and the company is accessible to its customers through 114 touchpoints, which comprise 51 dealer headquarters and 63 branches (of which, 34 also act as service centers) managed and operated by its dealers. Its revenue from operations for the six months period ended September 30, 2024 and September 30, 2023 and the Financial Years 2024, 2023 and 2022 was Rs. 7,699.85 million, Rs. 6,848.59 million, Rs. 17,414.03 million, Rs. 11,511.28 million and Rs. 7,632.89 million, respectively. Of this, 81.48%, 81.71%, 85.13%, 83.06%, and 77.44% for the respective periods/years were generated from the sale of SLCMs.
Industry Overview
In India, concrete equipment, particularly self-loading concrete mixers ("SLCMs"), plays an essential role in supporting the growing demand for infrastructure and construction projects. Other concrete equipment manufacturers include local companies such as Aquarius Engineers Private Limited and subsidiaries of international companies such as Fiori Concrete Machines India Private Limited, KYB-Conmat Private Limited, Putzmeister India Private Limited, Schwing Stetter (India) Private Limited, among others. Infrastructure development is projected to propel the demand for mechanized concrete equipment in India and grow the industry from Rs. 61 billion (US$731 million) for Financial Year 2024 to Rs. 178 billion (US$2,148 million) for Financial Year 2029. The concrete equipment market in India, and in particular, the market for SLCMs, is experiencing significant growth on account of several factors, including an increase in cement consumption and an increase in public and private capital expenditure towards infrastructure, irrigation, housing and renewable power projects, leading to increased demand for construction materials and equipment.
Company History
Ajax Engineering Limited was incorporated as `Ajax Fiori Engineering (India) Private Limited' on July 3, 1992, at Bengaluru, Karnataka, India as a private limited company under the Companies Act, 1956 pursuant to certificate of incorporation issued by the Registrar of Companies, Karnataka at Bengaluru ("RoC"). Separately, an entity named `Ajax Engineering Private Limited' ("Pre-merger AEPL") was incorporated as private limited company under the Companies Act, 1956 pursuant to certificate of incorporation dated December 30, 1983 issued by the RoC. Pre-merger AEPL and Ajax Construtech Private Limited were later merged into the Company pursuant to the scheme of arrangement approved by the National Company Law Tribunal, Bengaluru, vide its order dated March 6, 2019 with the appointed date of April 1, 2018 ("Scheme of Arrangement"). Pursuant to the Scheme of Arrangement, the name of the Company was changed from `Ajax Fiori Engineering (India) Private Limited' to `Ajax Engineering Private Limited' and a fresh certificate of incorporation was issued on March 15, 2019 by the RoC. Subsequently, the Company was converted to a public limited company and the name of the Company changed to `Ajax Engineering Limited' pursuant to a Shareholders' resolution dated August 9, 2024 and a fresh certificate of incorporation dated September 23, 2024 was issued by the Registrar of Companies, Central Processing Centre.
Products & Services
- The Company has developed a product portfolio that includes equipment such as self-loading concrete mixers and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps & self-propelled
- boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete.
Growth Strategy
- Maintain its leadership position and grow market share of its SLCM portfolio by developing innovative products to cater to new untapped markets.
- Strengthen capabilities and increase market share of its non-SLCM portfolio.
- Improving operational efficiencies.
- Increase its presence in overseas markets through exports.
- Explore opportunities for inorganic growth.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 20,180,446 equity shares of face value of Re. 1 each ("Equity Shares") of Ajax Engineering Limited ("Company" or "Issuer") for cash at a price of Rs. 629^ per equity share (including a share premium of Rs. 628^ per equity share) ("Offer Price") aggregating to Rs. 1268.88 crores^ (the "Offer"), through an offer for sale by the selling shareholders (defined below), consisting of 1,716,102 equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Krishnaswamy Vijay, 1,716,102 equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Kalyani Vijay, 2,288,136 equity shares of face value of Re. 1 each aggregating to Rs. 143.87 crores^ by Jacob Jiten John, 5,593,221 equity shares of face value of Re. 1 each aggregating to Rs. 351.69 crores^ by Jacob Hansen Family Trust (collectively referred to as "Promoter Selling Shareholders"), 7,436,800 equity shares of face value of Re. 1 each aggregating to Rs. 467.60 crores^ by Kedaara Capital Fund ii llp ("Kedaara Capital", the "Investor Selling Shareholder") and 1,430,085 equity shares of face value of Re. 1 each aggregating to Rs. 89.92 crores^ by Susie John ("Promoter Group Selling Shareholder") (the promoter selling shareholders, along with the investor selling shareholder and promoter group selling shareholder, collectively referred to as the "Selling Shareholders") ("Offer for Sale", and together, the "Offer"). The offer included a reservation of 78,947 equity shares of face value of Re. 1 each (constituting to 0.07% of the post-offer paid-up equity share capital of the company) aggregating to Rs. 4.50 crores^ for subscription by eligible employees (as defined hereinafter) (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The company, in consultation with the book running lead managers, offered a discount of to 9.38% to the offer price equivalent of Rs. 59.00 per equity share to eligible employees bidding in the employee reservation portion ("Employee Discount"). ^A discount of Rs. 59.00 per equity share was offered to eligible employees bidding in the employees reservation portion. The offer and the net offer constitutes 17.64% and 17.57% of its post-offer paid-up equity share capital of the company respectively. The offer price is 629 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Market leader in a large and fast-growing SLCM market with an approximately 77%, 75%, 77% and 86% market share in the SLCM market in India in terms of number of SLCMs sold during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022, respectively.
- Leading concrete equipment company with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain and over 141 concrete equipment variants as of September 30, 2024.
- Engineering-focused concrete equipment company with strong in-house design, development and engineering capabilities.
- Technology-led assembly and manufacturing processes supported by robust supplier network.
- Dealer-led distribution model with 51 dealerships across 23 states in India as of September 30, 2024.
- The company derives a significant majority of its revenue from the sale of self-loading concrete mixers (85.13% of the company revenue from operations for the Financial Year 2024). Any decrease in sales of SLCMs or demand for concrete equipment in India could adversely affect its business, results of operations, financial condition and cash flows.
- The company business is seasonal in nature and any decrease in sales during certain quarters could have an adverse impact on its financial performance.
- Fluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on its business, results of operations, financial condition and cash flows.
- All its assembling and manufacturing facilities are located in the state of Karnataka, which may expose it to regional risks that could adversely affect the company business, results of operations, financial condition, and cash flows.
- Its Statutory Auditors' audit reports and annexures to auditors' reports which discloses matters specified in the Companies (Auditor's Report) Order, 2020 for the past three Financial Years have included certain modifications. If similar modifications are included in the Statutory Auditors' reports for its financial statements in the future, the trading price of the company Equity Shares could be adversely affected.