Shares of Ajax Engineering Ltd fluctuate between ₹594 and ₹566 on Monday, after a weak market debut. The stock debuted on the BSE at ₹593, at a discount of 5.72 per cent against the issue price of ₹629.
On the NSE, the stock listed at ₹576, reflecting a 8.42 per cent discount. The market capitalisation stood at ₹6,611.57, per NSE data.
The stock inched up 0.91 per cent to trade at ₹581.25 on the NSE as at 12.12 pm, while it declined 2.09 per cent to ₹580.60 on the BSE.
The broader market plummeted, Sensex traded at 75,592.72, lower by 346.49 pts or 0.46 per cent, and Nifty 50 declined 104.00 pts or 0.45 per cent to 22,825.25.
“Given market turbulence, Ajax Engineering listing was well below street estimations of flat listing. It had well managed to sail out successfully from investors across all categories,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Ajax Engineering manufactures a wide range of concrete equipment and services across the value chain. Market experts highlighted that the company is well-positioned among top three self-loading concrete mixers (SLCM) manufacturers.
The brokerage continues to remain optimistic despite weak openings, given the company’s virtual monopoly in SLCM and increasing infrastructure development in India with rising demand for automated concrete solutions.
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“We believe Ajax is well-positioned for catering to India’s booming construction and infrastructure sector. Hence, looking at all the positive long term attributes, we recommend investors to hold,” Tapse added. To those who wish to accumulate the dip should wait and watch for better discounted prices in this market scenario, the analyst added.
Recounting the journey, Krishnaswamy Vijay, Executive Chairman of Ajax Engineering, recalled the phase of liberalisation when the company was established in 1992 and emphasised that mechanisation, particularly in the concrete industry was low, or non-existent by then.
Shubhabrata Saha, MD & CEO, Ajax, expressed gratitude to investors, employees, customers, partners and stakeholders addressing the listing ceremony. “This moment “signals our ambition to scale new heights, explore new opportunities, and continue delivering value to our stakeholders,” Saha added.
The ₹1,269-crore IPO, which garnered 6.45 times subscription ended on February 12, 2024, issue was a complete offer-for sale (OFS) of 2.01 crore shares. The price band was fixed at ₹599-629 per share.
The portion for qualified institutional buyers (QIBs) fetched 14.41 times subscription and the non-institutional investors was subscribed 6.47 times. The retail portion attracted 1.93 times subscription. Ahead of the IPO, the Bengaluru-headquartered company mobilised over ₹379 crore from anchor investors.
ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets were book-running lead managers to the issue.