AJAX Engineering Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to offer up to 2.28 crore equity shares, each with a face value of Re 1. The IPO will consist solely of an offer for sale (OFS) by existing shareholders, with no fresh shares being issued.
The selling shareholders include individuals and entities such as Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, Susie John, and Kedaara Capital Fund II LLP. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
ICICI Securities Ltd., Citigroup Global Markets India Pvt., JM Financial Ltd., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd. are serving as the book-running lead managers for the IPO. Link Intime India Pvt. has been appointed as the registrar for the offer.
According to the prospectus, AJAX Engineering will not receive any proceeds from the sale of shares. The OFS aims to provide an exit route for existing shareholders and allow the company’s equity to be listed on the stock exchanges. Proceeds from the sale, after deducting applicable expenses and taxes, will be distributed to the selling shareholders.
The company’s shareholding currently stands at 11.44 crore equity shares with a face value of Re 1 each, a figure that will remain unchanged after the offering.
The company highlighted several factors that underpin its business strategy and offer pricing. According to a Redseer Report, AJAX Engineering ranks among the top three global manufacturers in the self-loading concrete mixer (SLCM) market, holding 75% to 86% of the Indian market share in the last three fiscal years. The company has sold over 25,000 SLCMs to 18,000 customers across India in the past decade.
AJAX offers a broad portfolio of concrete equipment, including batching plants, transit mixers, boom pumps, and 3D concrete printers, with over 110 equipment variants as of March 2024. The company emphasizes its in-house design and engineering capabilities, particularly innovations such as SLCMs with load cell technology and a patented self-propelled boom pump introduced in 2019.
With four manufacturing facilities in Karnataka, AJAX follows a lean assembly model, sourcing 90% of its materials domestically. Its dealer network spans 51 dealerships across India and 25 international dealers, further expanding its market reach. By March 2024, AJAX had sold equipment to over 15,700 customers, reflecting a growing customer base in various construction sectors.