Ajax Eng listing dull

Today there was a new listing on the bourses and it reflects the overall mood of the market – lacklustre and dull. As against the IPO price of Rs.629, the stock got listed much lower at Rs.593 and then slipped down further to Rs.565 and is currently trading at Rs.580 levels.

Ajax Engineering is a 32 year old, Bengaluru based original equipment manufacturer (OEM), of self-loading concrete mixers (SLCM), batching plants for concrete production and transit mixers for concrete transportation, commanding 75% market share, in terms of number of SLCM sold. It has a pan India network of 51 dealers.

The IPO did ok with overall subscription at 6.29x, with QIBs portion largest at 14.41x, HNIs at 6.47x and Retail at 1.93x.

Our conclusion in the IPO Analysis - Healthy fundamentals and good pricing make the IPO of Ajax Engineering a ‘subscribe’.