The much-anticipated Ajax Engineering IPO is now open for bidding! With the company aiming to raise a whopping Rs 1,269.35 crore, investors are keen to know whether this is a golden opportunity or one to approach with caution. Let’s dive deep into the details and help you decide if you should subscribe to this IPO.
IPO Details: Everything You Need to Know
The Ajax Engineering IPO opened for bidding on Monday, February 10, 2025, and will close on February 12, 2025. The entire issue is an offer for sale (OFS) of 2.02 crore shares, meaning existing stakeholders are offloading their shares rather than the company raising fresh capital.
Before the IPO was available to the public, Ajax Engineering secured Rs 379.32 crore from anchor investors. This is often a strong sign of institutional confidence in a company’s growth potential.
Price Band and Lot Size
Price Band: Rs 599 - Rs 629 per share
Minimum Lot Size for Retail Investors: 23 shares (Rs 14,467 investment)
Small Non-Institutional Investors (sNII): Minimum 14 lots (Rs 2,02,538)
Big Non-Institutional Investors (bNII): Minimum 70 lots (Rs 10,12,690)
The IPO is being managed by leading financial institutions, including ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets. Link Intime India Private Ltd is the registrar for the issue.
Should You Subscribe to the Ajax Engineering IPO?
Now, the big question—should you invest in the Ajax Engineering IPO? Let's break it down based on expert opinions.
Brokerage Firms' Recommendations
Several leading brokerage firms have analyzed the IPO and provided their insights:
Reliance Securities has given a thumbs-up, citing Ajax Engineering’s strong expansion in non-SLCM (Self-Loading Concrete Mixers) equipment, increasing exports, and acquisition strategies. The firm also noted that Ajax Engineering is well-positioned to maintain its leadership in the growing SLCM market while expanding its footprint in the concrete equipment segment. With a diversified customer base and strong financials, Reliance Securities recommends subscribing to the IPO.
KRChoksey Research, BP Equities, and Ventura Securities have also expressed a positive outlook, advising investors to subscribe to the IPO.
Latest Grey Market Premium (GMP) and Expected Listing Gains
For those unfamiliar with GMP, it’s the premium at which an IPO share is trading in the unofficial market before its listing. It gives investors an idea of potential listing gains.
As of February 10, 2025, the latest GMP for Ajax Engineering IPO is Rs 52. This means that based on the upper price band of Rs 629, the estimated listing price is Rs 681, suggesting a possible gain of 8.27% on listing.
Key Dates for Ajax Engineering IPO
Bidding Closes: February 12, 2025
IPO Allotment Finalization: February 13, 2025
Refunds & Demat Transfer: February 14-16, 2025
Expected Listing on BSE & NSE: February 17, 2025
Pros and Cons of Investing in Ajax Engineering IPO
Pros:
✔️ Strong leadership in the SLCM and concrete equipment market ✔️ Expanding exports and acquisition strategies ✔️ Diversified customer base and solid financials ✔️ Positive recommendations from multiple brokerage firms ✔️ Strong anchor investor backing
Cons:
❌ The IPO is a pure offer for sale (OFS), meaning no new capital is being raised for business expansion ❌ Market fluctuations and sector-specific risks may impact listing gains
Final Verdict: Is Ajax Engineering IPO Worth It?
Given the strong fundamentals, leadership in the market, and positive brokerage recommendations, Ajax Engineering appears to be a solid investment for both short-term listing gains and long-term growth. However, as with any investment, it's crucial to assess your risk appetite before making a decision.
If you’re a retail investor looking for a stable and promising company in the infrastructure sector, this IPO could be a great addition to your portfolio. Just ensure you’re comfortable with the risks involved!
Read More: Todays stock market news and analysis
Conclusion
The Ajax Engineering IPO has generated significant interest among investors, and for good reason. With a well-established market presence, strong financial backing, and positive expert reviews, it has all the makings of a promising investment. However, since the offering is purely an OFS, investors should weigh their options and financial goals before subscribing.
Would you take the plunge and invest in Ajax Engineering? Share your thoughts!
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