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Ajax Engineering Ltd IPO

Status: Closed

Overview

IPO date
10 Feb 2025 to 12 Feb 2025
Face value
₹ 1 per share
Price
₹ 599 to ₹629 per share
Issue Size
20,180,446 shares
(aggregating up to ₹ 1269.35 Cr)
Allotment Date
13 Feb 2025
Listing at
NSE
Issue type
Book Building
Sector
Capital Goods-Non Electrical Equipment

Objectives of Ajax Engineering Ltd IPO

Initial public offer of 20,180,446* equity shares of face value of Re. 1 each ("Equity Shares") of Ajax Engineering Limited ("Company" or "Issuer") for cash at a price of Rs. 629^ per equity share (including a share premium of Rs. 628^ per equity share) ("Offer Price") aggregating to Rs. 1268.88 crores^ (the "Offer"), through an offer for sale by the selling shareholders (defined below), consisting of 1,716,102* equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Krishnaswamy Vijay, 1,716,102* equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Kalyani Vijay, 2,288,136* equity shares of face value of Re. 1 each aggregating to Rs. 143.87 crores^ by Jacob Jiten John, 5,593,221* equity shares of face value of Re. 1 each aggregating to Rs. 351.69 crores^ by Jacob Hansen Family Trust (collectively referred to as "Promoter Selling Shareholders"), 7,436,800* equity shares of face value of Re. 1 each aggregating to Rs. 467.60 crores^ by Kedaara Capital Fund ii llp ("Kedaara Capital", the "Investor Selling Shareholder") and 1,430,085* equity shares of face value of Re. 1 each aggregating to Rs. 89.92 crores^ by Susie John ("Promoter Group Selling Shareholder") (the promoter selling shareholders, along with the investor selling shareholder and promoter group selling shareholder, collectively referred to as the "Selling Shareholders") ("Offer for Sale", and together, the "Offer"). The offer included a reservation of 78,947* equity shares of face value of Re. 1 each (constituting to 0.07% of the post-offer paid-up equity share capital of the company) aggregating to Rs. 4.50 crores^ for subscription by eligible employees (as defined hereinafter) (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The company, in consultation with the book running lead managers, offered a discount of to 9.38% to the offer price equivalent of Rs. 59.00 per equity share to eligible employees bidding in the employee reservation portion ("Employee Discount"). *Subject to finalisation of basis of allotment. ^A discount of Rs. 59.00 per equity share was offered to eligible employees bidding in the employees reservation portion. The offer and the net offer constitutes 17.64% and 17.57% of its post-offer paid-up equity share capital of the company respectively. The offer price is 629 times the face value of the equity shares.

Ajax Engineering Ltd IPO Strategy

  • Maintain its leadership position and grow market share of its SLCM portfolio by developing innovative products to cater to new untapped markets.
  • Strengthen capabilities and increase market share of its non-SLCM portfolio.
  • Improving operational efficiencies.
  • Increase its presence in overseas markets through exports.
  • Explore opportunities for inorganic growth.

About Ajax Engineering Ltd

Ajax Engineering Limited was incorporated as Ajax Fiori Engineering (India) Private Limited' on July 3, 1992, at Bengaluru, Karnataka, as a Private Limited Company issued by the Registrar of Companies. Pursuant to Scheme of Arrangement, the Company name got changed from Ajax Fiori Engineering (India) Private Limited' to Ajax Engineering Private Limited' and a fresh Certificate of Incorporation was issued on March 15, 2019 by the RoC. Subsequently, the status of the Company converted to a Public Limited and the name of the Company got changed to Ajax Engineering Limited' dated September 23, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is in the business of manufacturing self-loading concrete mixers (SLCMs), concrete batching plants and concrete pumps, being used across various sectors. The concrete equipment is deployed across transportation projects such as roads, railway lines, underground tunnels, elevated tracks, flyovers and bridges, irrigation projects such as reservoirs, canals, check dams and aqueducts, and infrastructure projects involving landscaping, drainage and/or construction of airports, power plants, factories, oil and gas terminals, among others. In addition to SLCM portfolio, the Company has a large and diverse range of non-SLCM equipment that cater to various aspects of the concrete production, transportation, placement and paving processes. Non-SLCM product portfolio includes batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, self-propelled boom pumps for concrete placement, and slip-form pavers. The Company started developing the Self-Loading Concrete Mixer in India during the year 1992. In 2012, the Company inaugurated second plant at Doddaballapur, Karnataka to manufacture SLCMs; introduced the JSP concrete pump in 2013; established third facility in Gowribidanur, Karnataka, for assembly of concrete batching plants in 2014; established fourth facility in Doddaballapur, Karnataka for manufacturing SLCMs in 2018. Following the approval from National Company Law Tribunal, Bengaluru, the Scheme of Arrangement between the Company, Ajax Construtech Private Limited and Pre-merger AEPL, the various undertakings of Pre-merger AEPL and Ajax Construtech Private Limited got merged into the Company in May, 2018. As consideration for the said Demerger, the Company allotted 6.9161 Equity Shares of the Company for every 1 equity share held by the equity shareholders in Premerger AEPL; and five Equity Shares each of the Company to shareholders of Ajax Construtech Private Limited. Resulting this, the Scheme of Arrangement was given effect from April 1, 2018 and made operational from March 6, 2019. In 2019, the Company launched slip-form paver, the first indigenous paver designed and manufactured in India; launched Self Propelled Boom Pump' (SPBP) and in 2023, it launched 3D Concrete Printing Machine. The Company is planning an Initial Public Offer of 22,881,718 Equity Shares of Face Value of Re 1 each through Offer for Sale.

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Strengths vs Risks of Ajax Engineering Ltd

Know the pros & cons

Strengths

  • arrowMarket leader in a large and fast-growing SLCM market with an approximately 77%, 75%, 77% and 86% market share in the SLCM market in India in terms of number of SLCMs sold during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022, respectively.
  • arrowLeading concrete equipment company with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain and over 141 concrete equipment variants as of September 30, 2024.
  • arrowEngineering-focused concrete equipment company with strong in-house design, development and engineering capabilities.
  • arrowTechnology-led assembly and manufacturing processes supported by robust supplier network.
  • arrowDealer-led distribution model with 51 dealerships across 23 states in India as of September 30, 2024.
  • arrowDiversified customer base with longstanding relationships in the concrete equipment market and over 19,000 customers as of September 30, 2024.
  • arrowExperienced management team supported by qualified and experienced personnel.

Risks

  • arrowThe company derives a significant majority of its revenue from the sale of self-loading concrete mixers (85.13% of the company revenue from operations for the Financial Year 2024). Any decrease in sales of SLCMs or demand for concrete equipment in India could adversely affect its business, results of operations, financial condition and cash flows.
  • arrowThe company business is seasonal in nature and any decrease in sales during certain quarters could have an adverse impact on its financial performance.
  • arrowFluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowAll its assembling and manufacturing facilities are located in the state of Karnataka, which may expose it to regional risks that could adversely affect the company business, results of operations, financial condition, and cash flows.
  • arrowIts Statutory Auditors' audit reports and annexures to auditors' reports which discloses matters specified in the Companies (Auditor's Report) Order, 2020 for the past three Financial Years have included certain modifications. If similar modifications are included in the Statutory Auditors' reports for its financial statements in the future, the trading price of the company Equity Shares could be adversely affected.
  • arrowThe company currently assemble substantially all SLCMs at its Obadenahalli Facility and aggregating to 99.06%, 98.83%, 98.41% and 96.98% of all SLCMs manufacturing by it during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022 respectively. Any disruptions or stoppages at this facility or other facilities could adversely impact its operations, financial condition, and results of operations.
  • arrowIts business has grown rapidly and the company may not be able to sustain its historical growth rates in the future. Any inability to manage the company growth effectively and execute its growth strategy in a timely manner, or within budget estimates, could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowThe company relies on its dealer network to sell and distribute a majority of the company products and provide after-sales service. Any disruption in its dealer network could have an adverse effect on the company business, results of operations, financial condition and cash flows.
  • arrowThe leases for two of its assembling and manufacturing facilities have expired. While the company has made applications to obtain ownership of these land parcels, there can be no assurance that its will be successful. This may adversely affect the company business, results of operations, financial condition and cash flows.
  • arrowProceeds from the Offer will not be available to it.
  • arrowOne of the members of its Promoter Group has not consented to the inclusion of, nor has he provided, information or any confirmations or undertakings pertaining to himself or the entities in which he holds/may hold interest, which are required to be disclosed in relation to the Promoter Group under the SEBI ICDR Regulations in the Draft Red Herring Prospectus. The disclosures relating to this member of the Promoter Group has been included in the Draft Red Herring Prospectus based on information available in public domain. Accordingly, the company cannot assure you that the disclosures relating to such member of its Promoter Group is accurate, complete, or up to date. Further, details in relation to connected persons which may qualify as members of its Promoter Group have not been disclosed in the Draft Red Herring Prospectus and this Red Herring Prospectus.
  • arrowThere have been few instances of non-compliances, including with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance and its business, financial condition and reputation may be adversely affected.
  • arrowThe company has entered into and will continue to enter into related party transactions. Its cannot assure you that such transactions, individuals or in the aggregate, will not have an adverse effect on its business, financial condition, results of operations and cash flows.
  • arrowThe Company has been sanctioned unsecured loans from banks and other financial institutions, which may be recalled on demand.
  • arrowSome of its Promoters does not have adequate experience in the company line of business and have not actively participated in the business activities its undertake, which may have an adverse impact on the management and operations of the Company.
  • arrowIts success depends on the company ability to develop and commercialize new concrete equipment in a timely manner. If its design, engineering and development efforts does not succeed in a timely manner or at all, or if the products the company develop and commercialize does not perform as expected, its business, financial condition, results of operations and cash flows could be adversely affected.
  • arrowThe company is subject to risks associated with product recall due to defects in its construction equipment, which may adversely affect the company reputation, business, results of operations, financial condition and cash flows.
  • arrowIf the company is unable to maintain the existing level of capacity utilization at its assembling and manufacturing facilities, the company margins and profitability may be adversely affected. Further, a slowdown or shutdown in its assembling and manufacturing operations could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowThe company may encounter delays in the completion of the construction of its assembling and manufacturing facility in Adinarayanahosahalli, Karnataka.
  • arrowIts success depends on the company ability to identify market trends and meet evolving customer demands, while keeping up with technological advances and effectively integrating new technologies into its construction equipment. If the company is unable to do so, its sales volumes, business and results of operations would be adversely affected.
  • arrowThe company is exposed to the risk of loss of confidential technical knowledge which includes trade secrets, assembling and manufacturing processes, and other confidential information critical to its operations.
  • arrowThere are outstanding legal proceedings involving the Company, its Promoters, and the company Directors.
  • arrowThe company faces significant competition from domestic and international construction equipment manufacturers which may lead to a reduction in its market share, which in turn may adversely affect its business, results of operations, financial condition and cash flows.
  • arrowIf the company fails to obtain, maintain or renew statutory and regulatory licenses, permits and approvals required for its business and operations, the company business, results of operations, financial condition and cash flows may be adversely affected.
  • arrowSome gift deeds entered into by/in favour its Promoter and members of the Promoter Group with various parties are not adequately stamped. The said gift deeds may not be admissible as evidence in a court of law, until the relevant stamp duties are paid and the relevant registration, if required, is completed.
  • arrowNon-compliance with and changes in, safety, environmental and labor laws and other applicable regulations, may adversely affect its operations.
  • arrowThe company has certain contingent liabilities and capital commitments, which, if they materialize, may affect its results of operations, financial condition and cash flows.
  • arrowThe locations of its dealers is critical to the company success. The company cannot assure you that the current locations of its dealers will continue to be attractive as demographic patterns change.
  • arrowIts warranty reserves may be insufficient to cover future warranty claims, which could adversely affect its financial condition, results of operations and cash flows.
  • arrowThe company has utilized cash for investing activities and financing activities in the past and any net negative cash flows in the future could adversely affect its cash flow requirements.
  • arrowThe success of its business depends substantially on the company management team and operational workforce. Its inability to attract or retain such manpower could adversely affect the company business and operations.
  • arrowThe company relies on third-party logistics and transportation providers to transport its construction equipment from the company assembling and manufacturing facilities in Karnataka to its dealers across India and to international markets, and for the inbound transportation of materials and components to its assembling and manufacturing facilities. Any disruption in the logistics or transportation network in India, or any deficiency in service by these third-party transportation providers, could adversely affect its operations, business, results of operations, financial condition, and cash flows.
  • arrowThe company employees may engage in misconduct or other improper or illegal activities, including misrepresentation, non-compliance with regulatory requirements and breach of contractual obligations.
  • arrowIts inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations, financial condition, and cash flows.
  • arrowIts may not be successful in implementing the company business strategies. Any failures to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowThe company may not be able to successfully identify and conclude acquisitions or manage the integration of or harness synergies from acquired businesses, which may adversely affect its business, results of operations, cash flows and financial condition.
  • arrowThe company insurance coverage may not be sufficient or adequate to cover its losses and liabilities. If the company suffer a large uninsured loss or an insured loss that significantly exceeds its insurance coverage, the company business, results of operations, financial condition and cash flows may be adversely affected.
  • arrowSignificant disruptions of information technology systems or breaches of data security could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • arrowIts business relies on the adequate and uninterrupted availability of fuel, electrical power, and water to maintain continuous operations. Any disruptions in the supply of electrical power, whether due to natural calamities, fuel shortages, or other factors, could significantly impact its assembling and manufacturing processes.
  • arrowThe company use heavy equipment and machinery at its assembling and manufacturing facilities which could cause bodily harm and accidents, which in turn could adversely impact its operations.
  • arrowThe company operations could be adversely affected by strikes, labor unrest or labor unions.
  • arrowThe compnay may be unable to obtain and maintain the intellectual property rights for its brands or protect the company proprietary information.
  • arrowThe company has used information from the Redseer Report which has been commissioned and paid for by the Company for industry related data in this Red Herring Prospectus, and any reliance on such information is subject to inherent risks.
  • arrowIts may be negatively impacted by any early obsolescence of the company assembling and manufacturing equipment and the spare parts or software used in such equipment.
  • arrowIts listed peers may outperform us in certain financial and operational key performance indicators, which could adversely affect its competitive position, reputation, market share and business.
  • arrowInformation relating to the installed capacity, actual production and capacity utilization of its assembling and manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates, and future production and capacity may vary.
  • arrowThe company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

Ajax Engineering Ltd Peer Comparison

Understand the company’s industry standing

Ajax Engineering Ltd
Action Construction Equipment Ltd
BEML Ltd
Face Value
1
2
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1780.074
2990.897
4096.562
EPS-Basis
19.68
27.56
67.66
EPS-Diluted
19.58
27.56
67.66
NAV Per Share
80.24
103.42
640.55
P/E-Basic EPS
---
46.13
54.24
P/E-Diluted EPS
---
---
---
RONW(%)
19.39
26.65
10.56
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 10 Feb 2025 & closes on 12 Feb 2025.

Ajax Engineering Limited was incorporated as Ajax Fiori Engineering (India) Private Limited' on July 3, 1992, at Bengaluru, Karnataka, as a Private Limited Company issued by the Registrar of Companies. Pursuant to Scheme of Arrangement, the Company name got changed from Ajax Fiori Engineering (India) Private Limited' to Ajax Engineering Private Limited' and a fresh Certificate of Incorporation was issued on March 15, 2019 by the RoC. Subsequently, the status of the Company converted to a Public Limited and the name of the Company got changed to Ajax Engineering Limited' dated September 23, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is in the business of manufacturing self-loading concrete mixers (SLCMs), concrete batching plants and concrete pumps, being used across various sectors. The concrete equipment is deployed across transportation projects such as roads, railway lines, underground tunnels, elevated tracks, flyovers and bridges, irrigation projects such as reservoirs, canals, check dams and aqueducts, and infrastructure projects involving landscaping, drainage and/or construction of airports, power plants, factories, oil and gas terminals, among others. In addition to SLCM portfolio, the Company has a large and diverse range of non-SLCM equipment that cater to various aspects of the concrete production, transportation, placement and paving processes. Non-SLCM product portfolio includes batching plants for concrete production, transit mixers for concrete transportation, boom pumps, concrete pumps, self-propelled boom pumps for concrete placement, and slip-form pavers. The Company started developing the Self-Loading Concrete Mixer in India during the year 1992. In 2012, the Company inaugurated second plant at Doddaballapur, Karnataka to manufacture SLCMs; introduced the JSP concrete pump in 2013; established third facility in Gowribidanur, Karnataka, for assembly of concrete batching plants in 2014; established fourth facility in Doddaballapur, Karnataka for manufacturing SLCMs in 2018. Following the approval from National Company Law Tribunal, Bengaluru, the Scheme of Arrangement between the Company, Ajax Construtech Private Limited and Pre-merger AEPL, the various undertakings of Pre-merger AEPL and Ajax Construtech Private Limited got merged into the Company in May, 2018. As consideration for the said Demerger, the Company allotted 6.9161 Equity Shares of the Company for every 1 equity share held by the equity shareholders in Premerger AEPL; and five Equity Shares each of the Company to shareholders of Ajax Construtech Private Limited. Resulting this, the Scheme of Arrangement was given effect from April 1, 2018 and made operational from March 6, 2019. In 2019, the Company launched slip-form paver, the first indigenous paver designed and manufactured in India; launched Self Propelled Boom Pump' (SPBP) and in 2023, it launched 3D Concrete Printing Machine. The Company is planning an Initial Public Offer of 22,881,718 Equity Shares of Face Value of Re 1 each through Offer for Sale.

Ajax Engineering Ltd IPO will close on 12 Feb 2025.

  • Market leader in a large and fast-growing SLCM market with an approximately 77%, 75%, 77% and 86% market share in the SLCM market in India in terms of number of SLCMs sold during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022, respectively.
  • Leading concrete equipment company with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain and over 141 concrete equipment variants as of September 30, 2024.
  • Engineering-focused concrete equipment company with strong in-house design, development and engineering capabilities.
  • Technology-led assembly and manufacturing processes supported by robust supplier network.
  • Dealer-led distribution model with 51 dealerships across 23 states in India as of September 30, 2024.
  • Diversified customer base with longstanding relationships in the concrete equipment market and over 19,000 customers as of September 30, 2024.
  • Experienced management team supported by qualified and experienced personnel.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Krishnaswamy Vijay 6861200 6 5145098 4.5
2 Jacob Jiten John 3000000 2.62 711864 0.62
3 Kalyani Vijay 7408400 6.48 5692298 4.98
4 Madhuri Vijay --- --- --- ---
5 Prashant Vijay --- --- --- ---
6 Rachel Rekha Hansen --- --- --- ---
7 Savitha Christeena Alexander --- --- --- ---
8 Sean Alexander --- --- --- ---
9 Green Haveen Trust 20588000 18 20588000 18
10 Ohana Trust 20589600 18 20589600 18
11 Jacob Hansen Family Trust 20000000 17.47 14406779 12.59
12 The Johns Loaves Trust 22090400 19.31 22090400 19.31
13 Susie John 6432400 5.62 5002315 4.36

  • The company derives a significant majority of its revenue from the sale of self-loading concrete mixers (85.13% of the company revenue from operations for the Financial Year 2024). Any decrease in sales of SLCMs or demand for concrete equipment in India could adversely affect its business, results of operations, financial condition and cash flows.
  • The company business is seasonal in nature and any decrease in sales during certain quarters could have an adverse impact on its financial performance.
  • Fluctuations in prices of materials, and disruptions in the timely availability of materials could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • All its assembling and manufacturing facilities are located in the state of Karnataka, which may expose it to regional risks that could adversely affect the company business, results of operations, financial condition, and cash flows.
  • Its Statutory Auditors' audit reports and annexures to auditors' reports which discloses matters specified in the Companies (Auditor's Report) Order, 2020 for the past three Financial Years have included certain modifications. If similar modifications are included in the Statutory Auditors' reports for its financial statements in the future, the trading price of the company Equity Shares could be adversely affected.
  • The company currently assemble substantially all SLCMs at its Obadenahalli Facility and aggregating to 99.06%, 98.83%, 98.41% and 96.98% of all SLCMs manufacturing by it during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022 respectively. Any disruptions or stoppages at this facility or other facilities could adversely impact its operations, financial condition, and results of operations.
  • Its business has grown rapidly and the company may not be able to sustain its historical growth rates in the future. Any inability to manage the company growth effectively and execute its growth strategy in a timely manner, or within budget estimates, could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • The company relies on its dealer network to sell and distribute a majority of the company products and provide after-sales service. Any disruption in its dealer network could have an adverse effect on the company business, results of operations, financial condition and cash flows.
  • The leases for two of its assembling and manufacturing facilities have expired. While the company has made applications to obtain ownership of these land parcels, there can be no assurance that its will be successful. This may adversely affect the company business, results of operations, financial condition and cash flows.
  • Proceeds from the Offer will not be available to it.
  • One of the members of its Promoter Group has not consented to the inclusion of, nor has he provided, information or any confirmations or undertakings pertaining to himself or the entities in which he holds/may hold interest, which are required to be disclosed in relation to the Promoter Group under the SEBI ICDR Regulations in the Draft Red Herring Prospectus. The disclosures relating to this member of the Promoter Group has been included in the Draft Red Herring Prospectus based on information available in public domain. Accordingly, the company cannot assure you that the disclosures relating to such member of its Promoter Group is accurate, complete, or up to date. Further, details in relation to connected persons which may qualify as members of its Promoter Group have not been disclosed in the Draft Red Herring Prospectus and this Red Herring Prospectus.
  • There have been few instances of non-compliances, including with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance and its business, financial condition and reputation may be adversely affected.
  • The company has entered into and will continue to enter into related party transactions. Its cannot assure you that such transactions, individuals or in the aggregate, will not have an adverse effect on its business, financial condition, results of operations and cash flows.
  • The Company has been sanctioned unsecured loans from banks and other financial institutions, which may be recalled on demand.
  • Some of its Promoters does not have adequate experience in the company line of business and have not actively participated in the business activities its undertake, which may have an adverse impact on the management and operations of the Company.
  • Its success depends on the company ability to develop and commercialize new concrete equipment in a timely manner. If its design, engineering and development efforts does not succeed in a timely manner or at all, or if the products the company develop and commercialize does not perform as expected, its business, financial condition, results of operations and cash flows could be adversely affected.
  • The company is subject to risks associated with product recall due to defects in its construction equipment, which may adversely affect the company reputation, business, results of operations, financial condition and cash flows.
  • If the company is unable to maintain the existing level of capacity utilization at its assembling and manufacturing facilities, the company margins and profitability may be adversely affected. Further, a slowdown or shutdown in its assembling and manufacturing operations could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • The company may encounter delays in the completion of the construction of its assembling and manufacturing facility in Adinarayanahosahalli, Karnataka.
  • Its success depends on the company ability to identify market trends and meet evolving customer demands, while keeping up with technological advances and effectively integrating new technologies into its construction equipment. If the company is unable to do so, its sales volumes, business and results of operations would be adversely affected.
  • The company is exposed to the risk of loss of confidential technical knowledge which includes trade secrets, assembling and manufacturing processes, and other confidential information critical to its operations.
  • There are outstanding legal proceedings involving the Company, its Promoters, and the company Directors.
  • The company faces significant competition from domestic and international construction equipment manufacturers which may lead to a reduction in its market share, which in turn may adversely affect its business, results of operations, financial condition and cash flows.
  • If the company fails to obtain, maintain or renew statutory and regulatory licenses, permits and approvals required for its business and operations, the company business, results of operations, financial condition and cash flows may be adversely affected.
  • Some gift deeds entered into by/in favour its Promoter and members of the Promoter Group with various parties are not adequately stamped. The said gift deeds may not be admissible as evidence in a court of law, until the relevant stamp duties are paid and the relevant registration, if required, is completed.
  • Non-compliance with and changes in, safety, environmental and labor laws and other applicable regulations, may adversely affect its operations.
  • The company has certain contingent liabilities and capital commitments, which, if they materialize, may affect its results of operations, financial condition and cash flows.
  • The locations of its dealers is critical to the company success. The company cannot assure you that the current locations of its dealers will continue to be attractive as demographic patterns change.
  • Its warranty reserves may be insufficient to cover future warranty claims, which could adversely affect its financial condition, results of operations and cash flows.
  • The company has utilized cash for investing activities and financing activities in the past and any net negative cash flows in the future could adversely affect its cash flow requirements.
  • The success of its business depends substantially on the company management team and operational workforce. Its inability to attract or retain such manpower could adversely affect the company business and operations.
  • The company relies on third-party logistics and transportation providers to transport its construction equipment from the company assembling and manufacturing facilities in Karnataka to its dealers across India and to international markets, and for the inbound transportation of materials and components to its assembling and manufacturing facilities. Any disruption in the logistics or transportation network in India, or any deficiency in service by these third-party transportation providers, could adversely affect its operations, business, results of operations, financial condition, and cash flows.
  • The company employees may engage in misconduct or other improper or illegal activities, including misrepresentation, non-compliance with regulatory requirements and breach of contractual obligations.
  • Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations, financial condition, and cash flows.
  • Its may not be successful in implementing the company business strategies. Any failures to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • The company may not be able to successfully identify and conclude acquisitions or manage the integration of or harness synergies from acquired businesses, which may adversely affect its business, results of operations, cash flows and financial condition.
  • The company insurance coverage may not be sufficient or adequate to cover its losses and liabilities. If the company suffer a large uninsured loss or an insured loss that significantly exceeds its insurance coverage, the company business, results of operations, financial condition and cash flows may be adversely affected.
  • Significant disruptions of information technology systems or breaches of data security could have an adverse effect on its business, results of operations, financial condition and cash flows.
  • Its business relies on the adequate and uninterrupted availability of fuel, electrical power, and water to maintain continuous operations. Any disruptions in the supply of electrical power, whether due to natural calamities, fuel shortages, or other factors, could significantly impact its assembling and manufacturing processes.
  • The company use heavy equipment and machinery at its assembling and manufacturing facilities which could cause bodily harm and accidents, which in turn could adversely impact its operations.
  • The company operations could be adversely affected by strikes, labor unrest or labor unions.
  • The compnay may be unable to obtain and maintain the intellectual property rights for its brands or protect the company proprietary information.
  • The company has used information from the Redseer Report which has been commissioned and paid for by the Company for industry related data in this Red Herring Prospectus, and any reliance on such information is subject to inherent risks.
  • Its may be negatively impacted by any early obsolescence of the company assembling and manufacturing equipment and the spare parts or software used in such equipment.
  • Its listed peers may outperform us in certain financial and operational key performance indicators, which could adversely affect its competitive position, reputation, market share and business.
  • Information relating to the installed capacity, actual production and capacity utilization of its assembling and manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates, and future production and capacity may vary.
  • The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

The Issue type of Ajax Engineering Ltd is Book Building.

The minimum application for shares of Ajax Engineering Ltd is 23.

The total shares issue of Ajax Engineering Ltd is 20180446.

Initial public offer of 20,180,446* equity shares of face value of Re. 1 each ("Equity Shares") of Ajax Engineering Limited ("Company" or "Issuer") for cash at a price of Rs. 629^ per equity share (including a share premium of Rs. 628^ per equity share) ("Offer Price") aggregating to Rs. 1268.88 crores^ (the "Offer"), through an offer for sale by the selling shareholders (defined below), consisting of 1,716,102* equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Krishnaswamy Vijay, 1,716,102* equity shares of face value of Re. 1 each aggregating to Rs. 107.90 crores^ by Kalyani Vijay, 2,288,136* equity shares of face value of Re. 1 each aggregating to Rs. 143.87 crores^ by Jacob Jiten John, 5,593,221* equity shares of face value of Re. 1 each aggregating to Rs. 351.69 crores^ by Jacob Hansen Family Trust (collectively referred to as "Promoter Selling Shareholders"), 7,436,800* equity shares of face value of Re. 1 each aggregating to Rs. 467.60 crores^ by Kedaara Capital Fund ii llp ("Kedaara Capital", the "Investor Selling Shareholder") and 1,430,085* equity shares of face value of Re. 1 each aggregating to Rs. 89.92 crores^ by Susie John ("Promoter Group Selling Shareholder") (the promoter selling shareholders, along with the investor selling shareholder and promoter group selling shareholder, collectively referred to as the "Selling Shareholders") ("Offer for Sale", and together, the "Offer"). The offer included a reservation of 78,947* equity shares of face value of Re. 1 each (constituting to 0.07% of the post-offer paid-up equity share capital of the company) aggregating to Rs. 4.50 crores^ for subscription by eligible employees (as defined hereinafter) (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The company, in consultation with the book running lead managers, offered a discount of to 9.38% to the offer price equivalent of Rs. 59.00 per equity share to eligible employees bidding in the employee reservation portion ("Employee Discount"). *Subject to finalisation of basis of allotment. ^A discount of Rs. 59.00 per equity share was offered to eligible employees bidding in the employees reservation portion. The offer and the net offer constitutes 17.64% and 17.57% of its post-offer paid-up equity share capital of the company respectively. The offer price is 629 times the face value of the equity shares.