Ajax Engineering IPO GMP Tanks Despite Getting Fully Subscribed On Final Day
Despite the interest in the IPO, the grey market premium of Ajax Engineering IPO continued to decline for the third straight day.
Ajax Engineering IPO: The initial public offering of Ajax Engineering Ltd. which opened for subscription on Feb. 10 will close for bidding on Wednesday, Feb. 12. The IPO was fully subscribed on its final day with the issue getting subscribed more than 2x times its size.
Despite the interest in the IPO, the grey market premium of Ajax Engineering IPO continued to decline for the third straight day. The latest GMP stood was Rs 4.5 recorded at 1:33 p.m. on Feb. 12, marking a premium of over 0.72% over the issue price. Unlisted shares of concrete equipment manufacturer Ajax Engineering Ltd. were trading at Rs 633.5 apiece in the grey market.
According to InvestorGain, the GMP of Ajax Engineering was as high as Rs 52 a day before the IPO opened for subscription before declining to Rs 16 at the end of Day 1. The grey market rate continued to slide further and was Rs 7 on Feb. 11.
Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.
Check Ajax Engineering IPO GMP Trend
Ajax Engineering IPO Details
Issue opens: Feb. 10.
Issue closes: Feb. 12.
Issue price: Rs 599-629.
Offer for sale: Rs 1,269.35 crore.
Total issue size: Rs 1,269.35 crore.
Lot size: Minimum 23 shares, and then in multiples thereof.
Retail investors can bid in the IPO with a minimum lot size of 23 shares, resulting in an investment of Rs 14,467.
As per the company's RHP, of the 2,01,80,446 shares offered:
40,20,300 (19.92%) is reserved for Qualified Institutions
30,15,225 (14.94%) is reserved for Non-Institutional Buyers
70,35,525 (34.86%) is reserved for Retail Investors
78,947 (0.39%)is reserved for employees
60,30,449 (29.88%)is reserved for Anchor investors.
Ajax Engineering is a manufacturer of concrete equipment, with over 110 variants catering to various needs in the concrete application value chain. Established 32 years ago, the company has built a comprehensive product portfolio that includes self-loading concrete mixers, batching plants, transit mixers, boom pumps, and 3D concrete printers.
The company is one of the three largest SLCM manufacturers globally, holding a dominant share in the Indian market, according to its RHP.
Watch: Ajax Engineering IPO - Should You Subscribe?
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.
