AJAX Engineering Lists at 8.4% Discount on NSE Despite Strong QIB Interest, Shows Recovery

AJAX Engineering Limited, a market leader in concrete equipment manufacturing operating since 1992, made a subdued entry into the public markets on Monday, February 17, 2025. The company, which specializes in self-loading concrete mixers and comprehensive concrete solutions, commenced trading on NSE and BSE with a notable discount despite strong institutional subscription, though showed signs of recovery in early trading.

AJAX Engineering  Listing Details 

The company's market debut presented a complex picture between institutional support and secondary market valuation:

• Listing Time & Price: When trading commenced at market open, AJAX Engineering shares debuted at ₹576 on NSE, showing a significant discount of 8.4% against the issue price of ₹629, while on BSE it listed at ₹593, down 5.72%. This weak opening came despite the QIB portion being subscribed 13.04 times.
• Issue Price Context: The company had fixed the IPO price at ₹629 per share, with an employee discount of ₹59. The market's initial response suggests investors were cautious about the valuation despite the company's market leadership.
• Price Evolution: By 11:05 AM IST, the stock showed some recovery from opening lows but remained under pressure, trading at ₹578.65 after hitting an intraday high of ₹593.30, representing a loss of 8% from the issue price.

First-Day Trading Performance of Chandan Healthcare

The trading activity showed balanced participation with mixed sentiment:

• Volume and Value: Within the first few hours, trading volume reached 4.53 lakh shares, generating a turnover of ₹26.40 crore, with 72.22% of traded quantity marked for delivery.
• Demand Dynamics: The stock's trading pattern showed buy orders for 3,23,031 shares against sell orders for 2,93,867 shares, indicating a balanced demand-supply situation.

Market Sentiment and Analysis

• Market Reaction: Weak opening followed by partial recovery
• Subscription Rate: The IPO had been subscribed 6.06 times overall
• Pre-listing Interest: Anchor investors had invested ₹379.32 crore, including major institutions

Growth Drivers and Challenges 

Expected drivers of future performance:

• Market leadership in SLCM segment
• Comprehensive product portfolio
• Strong in-house capabilities
• Technology-led processes
• Extensive dealer network
• Diverse customer relationships

Potential challenges:

• Infrastructure cycle dependency
• Competition intensity
• Working capital requirements
• Technology evolution
• Geographic expansion risks
• Raw material cost volatility

Utilisation of IPO Proceeds 

The ₹1,269.35 crore raised through offer for sale will go to the selling shareholders as this was entirely an OFS issue.
 

Financial Performance of Chandan Healthcare

The company has shown steady growth:

• Revenue of ₹1,780.07 crore in FY2024
• H1 FY2025 (ended September 2024) showed revenue of ₹794.16 crore with PAT of ₹101.02 crore
• Net Worth of ₹995.84 crore as of September 2024
• Minimal borrowings of ₹6.23 crore
• Total assets of ₹1,348.76 crore as of September 2024

As AJAX Engineering begins its journey as a listed entity, market participants will closely monitor its ability to maintain its market leadership and growth trajectory. The discount at listing despite strong institutional interest suggests investors are taking a measured view of valuations. The company's ability to leverage its dominant position in the SLCM segment while expanding into new product categories will be crucial for potential price recovery and long-term investor confidence.