The company’s IPO attracted significant attention as it aimed to tap into the public market for funding. However, despite the interest surrounding the offering, the grey market price (GMP) for the issue has been indicating that the stock may list with only a marginal premium, suggesting a more subdued market response upon its listing. The listing performance of the IPO will be closely watched by investors and market analysts alike.
Ajax Engineering’s initial public offering (IPO), valued at Rs 1,279.25 crore, was a significant event in the market as it exclusively consisted of an offer-for-sale (OFS) component. The company set the price band for the equity shares at Rs 599 to Rs 629 per share, aiming to raise funds through the sale of shares by existing shareholders, rather than issuing new ones. This move highlighted the company’s intention to provide an exit option to its shareholders, while the firm itself stands to gain from enhanced brand visibility and liquidity in the public market post-listing.
The IPO was launched for subscription on February 10, 2025, and closed on February 12, 2025. The subscription results demonstrated strong investor interest, with the issue being subscribed 6.06 times overall. This indicates a favorable reception to the offering by different investor categories. In particular, the retail investor category was subscribed 1.94 times, reflecting solid demand from individual investors. Meanwhile, the high-net-worth individual (HNI) category saw an oversubscription, underscoring the appeal of the issue among wealthier investors. Qualified institutional buyers (QIBs), which include large institutional investors like mutual funds and insurance companies, exhibited significant interest, with their portion oversubscribed 13.04 times, showing strong backing from institutional investors.
The process began with the opening of the subscription window on February 10 and closed on February 12. Following this, the share allotment was scheduled for February 13. On February 17, the shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), marking the company’s official entry into the public markets. The listing will be closely watched by investors and market analysts, as it will offer insights into the market’s reception of the stock and its future prospects.
ICICI Securities, Citigroup Global Markets India, JM Financials, Nuvama Wealth Management, and SBI Capital Markets acted as the book running lead managers to the issue, overseeing the process and ensuring its smooth execution. Link Intime India was appointed as the registrar for the offer, responsible for handling the allotment process and ensuring the distribution of shares to successful applicants.
Regarding the proceeds of the IPO, it is important to note that Ajax Engineering will not directly benefit from the funds raised, as the offer is entirely an offer-for-sale (OFS). The funds generated from the IPO will be entirely received by the promoter selling shareholder, after deducting offer-related expenses and taxes. This means that Ajax Engineering will not directly receive any capital from the IPO but stands to benefit from being listed on the public exchanges. The listing is expected to provide the company with enhanced brand visibility, greater recognition in the market, and liquidity options for its shareholders.
Turning to the financial performance of Ajax Engineering, the company has demonstrated impressive growth in recent years. For the financial year 2024 (FY 24), Ajax Engineering registered a revenue of Rs 1,780 crore, a notable increase from the Rs 1,172 crore recorded in the previous financial year (FY 23). This substantial growth in revenue highlights the company’s strong business performance and its ability to scale its operations effectively. Alongside this revenue growth, Ajax Engineering also posted a significant rise in profit after tax (PAT), which increased to Rs 225.15 crore in FY 24, compared to Rs 135.9 crore in FY 23. This surge in PAT reflects not only higher revenues but also efficient cost management and operational improvements.
In addition to these figures, the company’s financial performance during the first two quarters of FY 2024-25 also showcased its continued growth trajectory. Ajax Engineering reported a revenue of Rs 794 crore and a PAT of Rs 101 crore during this period. These results are in line with the company’s overall strong performance and highlight its ability to maintain momentum even as it enters a new fiscal year.
One of the most impressive aspects of Ajax Engineering’s financial performance is its consistent growth over the past few years. From FY 2022 to FY 2024, the company achieved a compound annual growth rate (CAGR) of 51% in revenue, which reflects the company’s strong market position and growing demand for its products and services. During the same period, its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at a CAGR of 74.5%, further demonstrating the company’s robust operational performance and efficient cost management. Moreover, its PAT grew at an even stronger CAGR of 84.4% during this time, showcasing the company’s ability to translate revenue growth into significant profit expansion.
This financial performance underscores Ajax Engineering’s strong growth trajectory, driven by its ability to scale operations, manage costs effectively, and deliver solid returns to its shareholders. As the company prepares for its public listing, it is clear that it has established a strong financial foundation that will be crucial in its ongoing journey as a publicly traded entity. Investors and analysts will likely focus on how the company continues to build on its successes, expand its market presence, and navigate the challenges of the public market moving forward.