Kedaara Capital-backed Ajax Engineering files IPO papers

Ajax Engineering IPO

Kedaara Capital-backed concrete equipment manufacturer Ajax Engineering has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The Bengaluru-headquartered company's proposed IPO is entirely an offer- for-sale (OFS) of 2.28 crore equity shares by promoters and an investor shareholder, according to the draft red herring prospectus (DRHP) filed on September 30.

As part of the OFS, Kedaara Capital will offload 74.37 lakh shares. Since the public issue is completely an OFS, Ajax Engineering will not receive any proceeds from the IPO.

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 specializing in distinct product lines.

Besides, an assembling and manufacturing facility at Adinarayanahosahalli, Karnataka is under construction and expected to become operational in March 2025.

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Its dealer network comprises 51 dealerships across 23 states in India and has expanded its global reach with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa as of March 2024.

Ajax Engineering reported FY24 revenue from operations at Rs 1,741 crore with a profit after tax (PAT) of Rs 225 crore.

According to a Redseer report, infrastructure development is projected to propel the demand for mechanized concrete equipment in India and grow the industry from Rs 6,100 crore in FY2024 to Rs 17,800 crore in FY2029.

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The concrete equipment market in India, and in particular, the market for self-loading concrete mixers, is experiencing significant growth owing to several factors, including an increase in cement consumption, a rise in public and private capital expenditure towards infrastructure, irrigation, housing and renewable power projects.

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