Ajax Engineering shares fluctuate after weak debut
Shares of Ajax Engineering closed at ₹593.40 on the NSE, a discount of 5.65 per cent, against the IPO price of ₹629 on Monday.
After listing at ₹576 on the NSE, the stock slipped further to ₹566. The market capitalisation stood at ₹6,788.90 crore, per NSE data. On the BSE, the stock listed at ₹593 and closed at ₹595.60
The broader market recovered from early losses, and Sensex marginally rose 57.65 pts or 0.08 per cent to end at 75,996.86 after hitting the day’s low of 75,294.76. Nifty 50 inched up by 30.25 pts or 0.13 per cent to close at 22,959.50.
The IPO was subscribed 6.45 times, with Qualified Institutional Buyers’ portion getting oversubscribed 14.41 times. The quota for non-institutional investors was subscribed 6.47 times and retail investors 1.93 times. The company hit the capital market with ₹1,269 crore IPO.
“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.
Satish Chandra Aluri, Research Analyst at Lemonn Markets Desk, said tepid investor interest and fluctuating premiums signalled a lacklustre reception, contributing to the discounted opening.
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 the top self-loading concrete mixers (SLCM) manufacturers in India.
Shubhabrata Saha, MD & CEO, Ajax, said: “This moment (listing) “signals our ambition to scale new heights, explore new opportunities, and continue delivering value to our stakeholders.”
ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, and SBI Capital Markets were book-running lead managers to the issue.
