Ajax Engineering's IPO Journey: Subscriptions Soar Amidst Strong Investor Interest

Ajax Engineering Ltd's IPO saw a 49% subscription on its second bidding day, raising over Rs 379 crore from anchor investors. While the offering, valued at Rs 1,269 crore, is fully an offer-for-sale, attracting significant interest from diverse investor categories, it won't provide proceeds to the company.

The initial public offering (IPO) of Ajax Engineering Ltd managed to capture substantial interest from investors, reaching 49% subscription by the second day of bidding on Tuesday. According to NSE data, the IPO received bids for 68,88,960 shares out of the 1,41,49,997 on offer. The non-institutional investors' quota was subscribed 61%, while retail individual investors achieved a 52% subscription rate and qualified institutional buyers accounted for 33%.

Kedaara Capital-backed Ajax Engineering reportedly secured over Rs 379 crore from anchor investors as it pursued its Rs 1,269-crore initial share sale, set to end on Wednesday. The price band has been fixed at Rs 599-629 per share. This all-encompassing offer-for-sale (OFS) by the promoters and an investor shareholder includes Kedaara Capital offloading 74.37 lakh shares.

Despite the high investor engagement, Ajax Engineering will not receive any proceeds from the IPO, as the public issue is entirely an OFS. The Bengaluru-based company excels in manufacturing concrete equipment and operates four facilities dedicated to various product lines. An additional facility under construction in Adinarayana Hosahalli, Karnataka, is anticipated to commence operations by August 2025. The book-running lead managers for the issue are ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets.

(With inputs from agencies.)