Ajax Engineering IPO subscribed 49% on day 2, GMP tanks

New Delhi: Ajax Engineering's initial public offer (IPO) received a 49 per cent subscription on the second day of bidding on February 11.

Ajax Engineering IPO subscription on day 2

The offer received bids for 68.88 lakh shares as against 1.41 crore shares on offer.

The initial public offer (IPO) of Ajax Engineering received 68,88,960 bids for shares as against 1,41,49,997 shares on offer, according to stock exchange data at 17:00 IST on Tuesday.

The portion for Retail Individual Investors (RIIs) fetched 52 percent subscription while the category for non-institutional investors got subscribed 61 percent. The quota for Qualified Institutional Buyers (QIBs) received 33 percent subscription.

The issue opened for bidding on 10 February 2025 and it will close on 12 February 2025. The price band of the IPO was fixed between Rs 599 to 629 per share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

Ajax Engineering IPO objectives

The company's initial public offering (IPO) is a complete offer-for-sale (OFS) of 2.01 crore shares, valued at Rs 1,269 crore at the top end of the price range, by its promoters and an investor shareholder.

The company will not receive any proceeds from the offer. Each of the selling shareholders will be entitled to their respective proportion of the proceeds from the offer for sale after deducting their portion of the offer-related expenses and applicable taxes.

Ahead of the IPO, Kedaara Capital-backed Ajax Engineering on Friday said it has mobilised over Rs 379 crore from anchor investors. The board allotted 60.30 lakh shares at Rs 629 each to 23 anchor investors.

The firm reported a consolidated net profit of Rs 101.02 crore and sales of Rs 769.99 crore for the six months ended on 30 September 2024.

Ajax Engineering IPO GMP update

Ajax Engineering’s IPO Grey Market Premium (GMP) stands at Rs 8 today, according to investorgain.com.

Based on the upper end of the IPO price band and the current grey market premium, the expected listing price for Ajax Engineering shares is Rs 637, which is 1.27% higher than the IPO price of Rs 629.

The grey market is an unofficial place to trade shares ahead of listing. Market participants keep a watch on GMP to track listing gains.

Ajax Engineering IPO listing date

Ajax Engineering shares are slated to be listed on NSE, BSE on February 17, while the allotment is likely to take place on February 13.

About Ajax Engineering company

Ajax Engineering is a leading concrete equipment manufacturer with a comprehensive range of related equipment, services, and solutions across the concrete application value chain.

The company operates four assembling and manufacturing facilities in Karnataka, each specialising in distinct product lines. Besides, an assembling and manufacturing facility at Adinarayanahosahalli, Karnataka is under construction and expected to become operational in August 2025.

ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management and SBI Capital Markets are the book-running lead managers to the issue.