The shares of Ajax Engineering made a weak debut on stock markets on February 17, listing at Rs 593 apiece on BSE. This marks a discount of nearly 6 percent to its IPO price of Rs 629 per share. The shares made a further disappointing debut on NSE, listing with 8.4 percent discount to IPO price at Rs 576 apiece.
The stock debuted with a market capitalization of around Rs 6,784 crore.
After the weak listing, the shares saw significant volatility throughout the day. On NSE, the shares had dropped to an intraday low of Rs 566 apiece, marking a fall of nearly 10 percent from its IPO price. However, the stock recovered some losses to close at Rs 593.40. It is still nearly 6 percent lower than its IPO price.
Ahead of listing, the unlisted shares of the company were trading with a discount of 0.48 percent in the grey market, as per Investorgain. Notably, analysts had expected a flat listing for the stock amid the current market scenario.
Also read: Ajax Engineering shares likely to list flat next week amid weak markets
The company had set a price band of Rs 599-629 per share for the IPO which solely comprised an offer-for-sale of over 2 crore shares by the existing shareholders. As the IPO was purely an offer-for-sale, the offer proceeds will go to the selling shareholders including investor Kedaara Capital Fund II LLP which is exiting the company via public issue.
The Rs 1,269-crore initial public offering (IPO) of the concrete equipment manufacturer was subscribed 6.44 times between February 10 and February 12. The initial share sale received bids for 9.11 crore shares, as against the offer size of 1.41 crore shares.
The portion reserved for for non-institutional investors garnered 6.46 times subscription, while that kept for retail individual investors (RIIs) was subscribed 1.92 times. The category for qualified institutional buyers (QIBs) received 14.41 times subscription. Earlier, Kedaara Capital-backed Ajax Engineering mobilised over Rs 379 crore from anchor investors.
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Before the IPO opened for subscription, the concrete equipment manufacturer raised Rs 379.31 crore from 23 institutional investors via anchor book on February 7. "Out of the total allocation of 60.3 lakh shares to anchor investors, 19.35 lakh shares were allocated to 5 domestic mutual funds, which have applied through a total of 8 schemes," Ajax Engineering said.
About the company:
With four assembling and manufacturing facilities in Karnataka, the concrete equipment manufacturer which competes with listed entities like Action Construction Equipment, BEML, and Escorts Kubota, holds 77 percent market share in the self-loading concrete mixers segment.
Ajax Engineering has recorded healthy financial performance in the past years with the profit in fiscal 2024 growing sharply by 65.7 percent to Rs 225.1 crore and revenue increasing by 51.3 percent to Rs 1,741.4 crore compared to previous financial year. Profit in the six months period ended September 2024 soared b 21.8 percent to Rs 101 crore and revenue grew by 12.4 percent to Rs 770 crore compared to the corresponding period last fiscal.
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