Ajax Engineering IPO fully subscribed on last day with QIBs coming to the rescue; check GMP, subscription status, review
- Ajax Engineering IPO has been fully subscribed by qualified institutional buyers on the final day, overcoming initial challenges. The Bengaluru-based company's share sale, valued at ₹1,269 crore, saw a total subscription of 6.37 times by 16:36 IST today.
Ajax Engineering IPO: The public offering of concrete equipment manufacturer Ajax Engineering has been completely subscribed on the final day of bidding, today, as qualified institutional buyers (QIBs) swooped in to save the day. After facing challenges during the first two days, where the employee segment attracted significant interest, the issue has ultimately been fully booked on the third day.
The Bengaluru-based company's initial share sale, valued at ₹1,269 crore, began on Monday, February 10, and will wrap up today, Wednesday, February 12. The company has established a price band of ₹599-629 per share.
As of the second day of bidding on Tuesday, February 11, the subscription status for the Ajax Engineering IPO was at 49%, while on the first day of bidding, it was recorded at 28%.
Talking about the overall IPO scenario, which has been struggling to draw subscriptions lately, Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities explained that IPO demand & supply trend is always dependent on secondary market momentum and ongoing markets selloff in the last 3-4 month has weighed more on primary market investors’ confidence.
The near term trend would remain subdued due to the ongoing pessimistic outlook. Until unless we see strong flow in the secondary market, the primary market will continue to see dullness in the upcoming IPO offers. Investors of both primary as well as secondary markets are worried and holding cash for better opportunity.
Ajax Engineering IPO subscription status
The initial public offer of Ajax Engineering IPO has been subscribed 6.44 times on the third day of subscription today, at 17:06 IST, as per BSE data.
The initial share sale received bid for 9,11,40,467 shares against 1,41,49,997 shares on offer, according to BSE.
The portion for retail investors received 1.92 times subscription while the quota for non-institutional investors got subscribed 6.46 times. The qualified institutional buyers (QIBs) part is booked 14.41 times. The employee portion has been subscribed 2.62 times.
Ajax Engineering IPO Review
Geojit Securities
Ajax Engineering's upper price band of ₹629 puts its P/E ratio at 32x for FY24, which seems fairly valued when compared to its peers. The company's strong market position, promising growth outlook, extensive dealer network, asset-light structure, zero debt, and favourable industry conditions contribute to its investment appeal. Based on these factors, the brokerage recommends subscribing to this issue for the long term.
Stoxbox
"The issue is priced at a P/E ratio of 32.1x at the upper price band based on FY24 earnings, which is comparatively lower than its industry peers. Given the company’s strong financial performance, favorable industry growth drivers, and attractive valuation, we recommend a "SUBSCRIBE" rating for this issue," the brokerage said.
Ajax Engineering IPO details
Ajax Engineering IPO consists entirely of an offer-for-sale involving 2.01 crore equity shares by current shareholders, with no fresh issuance included. As a result, all proceeds from the issue (excluding expenses related to the offer) will be directed to the selling shareholders.
Promoters Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, and Susie John are selling 1.27 crore equity shares in the offer-for-sale, while Kedaara Capital Fund II LLP, the sole investor, is completely exiting Ajax Engineering by divesting its entire stake of 74.36 lakh shares, which is equivalent to 6.5 percent of the paid-up equity.
The book running lead managers for the Ajax Engineering IPO include ICICI Securities Ltd, Citigroup Global Markets India Private Ltd, Jm Financial Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd, while Link Intime India Private Ltd serves as the registrar for the offering.
Ajax Engineering IPO GMP today
Ajax Engineering IPO GMP today or Ajax IPO GMP is +2. This indicates Ajax Engineering share price was trading at a premium of ₹2 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ajax Engineering share price was indicated at ₹631 apiece, which is 0.32% higher than the IPO price of ₹629 .
Grey market activity over the past nine sessions indicates that the current GMP ( ₹2) is trending lower. According to experts on investorgain.com, the lowest GMP is 0.00, and the maximum is ₹58.00.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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