AJAX Engineering Files Draft IPO Papers For Mainboard Listing

AJAX Engineering Ltd., a Bengaluru-based manufacturer of concrete equipment, has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering. 

The company will not issue any fresh shares, and the IPO will consist entirely of an offer for sale of up to 2.28 crore equity shares, with a face value of Re 1 each.

The promoter selling shareholders include Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, Susie John, and Kedaara Capital Fund II LLP. The equity shares from the offering are proposed to be listed on both the BSE and the National Stock Exchange of India Ltd.

The book-running lead managers for the IPO are ICICI Securities Ltd., Citigroup Global Markets India Pvt., JM Financial Ltd., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd. Link Intime India Pvt. will act as the registrar for the IPO.

The company will not receive any proceeds from the offer for sale. The objective of the offer is to achieve the benefits of listing its equity shares on the stock exchanges and to carry out the offer for sale for the selling shareholders, it said. Proceeds from the OFS, after deducting expenses and taxes, will be distributed to the respective selling shareholders.

As of now, AJAX Engineering has 11.44 crore equity shares of face value Re 1 each outstanding, both prior to and after the offer.

AJAX Engineering is a manufacturer of concrete equipment, with over 110 variants catering to various needs in the concrete application value chain. Established 32 years ago, the company has built a comprehensive product portfolio that includes Self-Loading Concrete Mixers, batching plants, transit mixers, boom pumps, and 3D concrete printers.

The company is one of the three largest SLCM manufacturers globally, holding a dominant share in the Indian market, according to its DRHP. 

The company's products are used across a range of sectors, including transportation (roads, railways, tunnels, and bridges), irrigation (reservoirs, canals), and infrastructure (airports, power plants, oil and gas terminals). 

Since its inception, AJAX has sold over 27,800 concrete equipment units in India, and during fiscal 2024, its SLCMs were responsible for 12% of all concrete production in the country, according to a Redseer report.