Ajax Engineering IPO: Submits DRHP to SEBI for Approval

Ajax Engineering Private Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, preparing for its upcoming public issue. The company will offer a 100% book-built issue, consisting entirely of an offer for sale (OFS) by the promoters. The total offer for sale comprises up to 22,881,781 equity shares.

Details such as the total issue size in rupees and the exact number of equities shares to be issued by the company have not yet been disclosed. The face value of each share is Rs 2.

This IPO will follow the book-building process, with less than 75% of the offer reserved for Qualified Institutional Buyers (QIBs), not more than 15% for Non-Institutional Investors (NIIs), and up to 10% for retail investors. Ajax Engineering IPO open date and close dates have not been announced yet, and the price band will be revealed soon by the company.

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About Ajax Engineering Limited

Ajax Engineering Limited, established in 1992 and headquartered in Bangalore, India, specializes in manufacturing self-loading concrete mixers and other construction equipment. The company has evolved into a global leader in its field, offering a comprehensive range of products, including concrete batching plants, boom pumps, and slip-form pavers. With state-of-the-art manufacturing facilities in Doddaballapur and Gowribidanur, Ajax is committed to innovation and customer-centric solutions. The firm reported operating revenues exceeding INR 500 crore for the financial year ending March 31, 2023, with a significant increase in EBITDA and net worth. Ajax Engineering is ISO 9001:2015 and ISO 14001:2015 certified, ensuring adherence to international quality standards in its operations and products.

Ajax Engineering IPO Objectives

Ajax Engineering is offering entirely an offer for sale, which means the existing shareholders are offering their shares as an in-public issue; there will be no fresh issue by the company. The funds received from the public issue will be directly credited to the respective selling shareholders bank account.

Financials of Ajax Engineering Limited

For the period ending March 31, 2024, the company's financial performance showed significant improvements across several metrics. Assets increased by 27.9%, rising from Rs 966.73 crore in March 2023 to Rs 1,236.14 crore in March 2024. Revenue surged by 51.2%, from Rs 1,151.13 crore to Rs 1,741.40 crore. Profit After Tax also saw a robust growth of 65.7%, jumping from Rs 135.90 crore to Rs 225.15 crore. Moreover, the company managed to reduce its total borrowing by 38.6%, from Rs 10.14 crore to Rs 6.23 crore, reflecting improved financial health and operational efficiency.

Lead managers and Registrar of Ajax Engineering IPO

The IPO is managed by ICICI Securities Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, Nuvama Wealth Management Limited and SBI Capital Markets Limited, which is the book-running lead manager of this public issue. The company has appointed Link Intime India Private Limited as the registrar for this public issue.

Promoters of Ajax Engineering

Krishnaswamy Vijay, Jacob Jiten John, Kalyani Vijay, Madhuri Vijay, Prashanth Vijay, Rachel Rekha Hansen, Savitha Christeena Alexander, Sean Alexander, Green Haven Trust, Ohana Trust, Jacob Hansen Family Trust and The Johns Loaves Trust are the identifiable promoters (s) of the company. They collectively held 100% of the company's shares. However, post-IPO changes in their shareholding have not yet been disclosed.

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