February 5, 2025
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Ajax Engineering IPO Review
Ajax Engineering is a leading manufacturer of concrete equipment, offering a comprehensive range of solutions, services, and products across the entire concrete application value chain. As of March 31, 2024, the company has developed over 110 variants of concrete equipment, catering to diverse needs in the industry. Over the past decade, Ajax Engineering has sold more than 27,800 units of concrete equipment in India.
The company is recognized as one of the top three manufacturers of Self-Loading Concrete Mixers (SLCMs) globally, holding significant market shares in India. In terms of the number of SLCMs sold, Ajax Engineering accounted for approximately 75%, 77%, and 86% of the market share during the financial years 2024, 2023, and 2022, respectively.
The growth of infrastructure development is expected to drive the demand for mechanized concrete equipment in India, propelling the industry from INR 61 billion (USD 731 million) in FY 2024 to INR 178 billion (USD 2.148 billion) by FY 2029. This surge in demand is particularly notable in the concrete equipment market, with significant growth in the SLCM sector driven by various factors.
As of March 31, 2024, Ajax Engineering’s extensive dealer network spans 51 dealerships across 23 states in India. The company is supported by 114 customer touchpoints, including 51 dealer headquarters and 63 branches, of which 34 also serve as service centers. This network represents the largest number of dealers and service touchpoints among its leading peers in the Indian concrete equipment manufacturing industry. Furthermore, Ajax Engineering has expanded its international presence with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa.
The company is raising Rs. 1,269.35 crores through its IPO, with Rs. 442.69 crores allocated to the retail portion. An additional Rs. 189.73 crores is reserved for HNI (high net-worth individual) investors. Given the absence of other major IPOs, there is an anticipated potential for significant oversubscription in the HNI category.
The shares are being offered at a reasonable valuation compared to its peers, offering potential for both listing gains and long-term returns.
Hence, we assign a “SUBSCRIBE” rating
IPO opens on 10 February 2025, Closes on 12 February and listing on 17 February 2025
Review by Paresh Gordhandas, CA and Research Analyst
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