Here's What Ajax Engineering IPO GMP Indicates Ahead Of Feb. 10 Launch

Ajax Engineering IPO Grey Market Premium: The initial public offering of Ajax Engineering Ltd. has been generating significant buzz in the unlisted market in the run of its launch next week. The grey market premium of Ajax Engineering IPO stood at Rs 54 as of 3:35 .m. on Feb. 7, marking a premium of over 8.59% over the issue price.

According to InvestorGain, shares of concrete equipment manufacturer Ajax Engineering Ltd. are likely to make their market at a listing price of Rs 683 on the BSE and the National Stock Exchange. However, the trends might change when the Ajax Engineering IPO opens for subscription.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

The mainboard IPO of Ajax Engineering  Ltd. is a book-built issue consisting of an offer-for-sale of  2.02 crore shares. There is no fresh issue component in this IPO. With a price band of Rs 599 to Rs 629, the total offer size is valued at Rs 1269.35 crore at the upper band.

As per company's RHP document, it has reserved 50% of the net offer size for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.

Retail investors can bid in the IPO with a minimum lot size of 23 shares, resulting in an investment of Rs 14,467.

The company has appointed  ICICI Securities Limited, Citigroup Global Markets India Pvt., JM Financial Ltd., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd. as the book-running lead managers for the issue. Link Intime India Pvt. is the registrar for Ajax Engineering IPO.

Bidding in the Ajax Engineering  IPO will remain open between Feb. 10 and Feb. 12, followed by the allotment of shares on Feb. 13.

The company will initiate refunds for the non-allottees on Feb. 14 along with credit of shares into the demat account of successful bidders on the same day.

Shares of Ajax Engineering Ltd. are proposed to be listed on the BSE and NSE on Monday, Feb. 17.

Since the Ajax Engineering IPO is entirely an OFS, the proceeds from the public offer will go directly to the shareholders selling their stakes.

Bengaluru-based Ajax Engineering Ltd. is a manufacturer of concrete equipment and services across the value chain. The company has four manufacturing facilities in Karnataka, located at Obadenahalli, Gowribidanur, and Bashettihal. Incorporated in 1992, Ajax Engineering Ltd. has a comprehensive portfolio that includes self-loading, concrete mixers, batching plans, boom pups and 3D concrete printers. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.