SBI Funds Invests Rs 212 Crore in Ajax Engineering Ahead of IPO

SBI Funds Management Ltd invested Rs 212 crore in concrete equipment manufacturer Ajax Engineering. The investment was made via SBI Magnum Children's Benefit Fund and SBI Infrastructure Fund. This comes ahead of Ajax's IPO, with the company preparing to raise Rs 1,269 crore from the public offering.

SBI Funds Management Ltd announced an investment of Rs 212 crore in Ajax Engineering, a leading player in the concrete equipment sector, just ahead of the company's upcoming IPO. The funds, deployed through SBI Magnum Children's Benefit Fund and SBI Infrastructure Fund, are part of a strategic share purchase agreement.

Ajax Engineering confirmed the sale in a public disclosure, detailing the share transfer agreement involving the Jacob Hansen Family Trust. Over 27 lakh shares were allocated to the two SBI funds, valuing the substantial transaction at Rs 170 crore. Separated into 19.07 lakh shares to SBI Magnum Children's Benefit Fund and 7.95 lakh to the SBI Infrastructure Fund, this move positions SBI Funds Management to own a 2.94 per cent stake in Ajax post-IPO.

The Bengaluru-based company's IPO, set to open in mid-February, aims to raise Rs 1,269 crore through total share sales from its promoters and other investors. Positioned as a complete offer-for-sale, the IPO price is set between Rs 599 and Rs 629 per share, potentially valuating Ajax at Rs 7,200 crore. Ajax Engineering, which operates four manufacturing facilities in Karnataka, also plans further expansion with another plant slated by 2025.

(With inputs from agencies.)