Ajax Engineering IPO listing date today; GMP, experts signal muted debut of shares in stock market today

Ajax Engineering IPO Listing: Ajax Engineering Ltd is set to make its stock market debut today after receiving decent demand for its initial public offering (IPO). Ajax Engineering IPO listing date is today, February 17. Ajax Engineering shares will be listed on both the stock exchanges, BSE and NSE.

Ajax Engineering IPO opened on February 10 and closed on February 12. The IPO allotment date was February 13 and the Ajax Engineering IPO listing date is February 17.

Ahead of the Ajax Engineering IPO listing today, investors watch out for the trends in grey market premium (GMP) to gauge the estimated listing price. Ajax Engineering IPO GMP today and analysts signal a muted debut of shares.

Here’s what to expect from Ajax Engineering IPO listing today:

Ajax Engineering IPO GMP Today

Ajax Engineering shares are showing a weak trend in the unlisted market with a negative grey market premium (GMP). According to stock market observers, Ajax Engineering IPO GMP today is ₹-3 per share. This indicates that in the grey market, Ajax Engineering shares are trading lower by, or at a discount of, ₹3 than their issue price.

Ajax Engineering IPO Listing Price

Considering the Ajax Engineering IPO GMP today, the estimated listing price of Ajax Engineering shares would be ₹626 apiece, which is at a discount of 0.48% to the IPO price of ₹629 per share.

Analysts also expect a tepid listing for Ajax Engineering shares.

“Despite market turbulence, Ajax Engineering managed to sail out successfully from investors across all categories. Considering the market trend, we are expecting a very flat listing on its issue price,” said Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities Ltd

Tapse believes Ajax Engineering Ltd IPO brings investors an opportunity to invest in a prominent player in the self-loading concrete mixer (SLCM) segment, with a market share of 77%.

“On valuation parse the company is asking a market cap of ₹7,196 crore, and a PE of ~29x. We believe the company’s valuations seem reasonably priced compared to the industry it serves. Given the company’s virtual monopoly in SLCM and increasing infrastructure development in India with rising demand for automated concrete solutions, we believe Ajax is well-positioned for catering to India’s booming construction and infrastructure sector,” Tapse said.

“Hence, looking at all attributes we recommend investors to “HOLD” for Ajax Engineering Ltd IPO for a long term basis,” he added.

Ajax Engineering IPO Details

The bidding for Ajax Engineering IPO commenced on February 10, and concluded on February 12. The IPO allotment date was February 13, and Ajax Engineering IPO listing date is today, February 17. Ajax Engineering shares will be listed on BSE and NSE.

Ajax Engineering IPO price band was set at ₹599 to ₹629 per share. The company raised ₹1,269.35 crore from the book-built issue which was entirely an offer-for-sale (OFS) of 2.02 crore equity shares.

The public issue was subscribed 6.44 times in total. The QIB portion was subscribed by 14.41 times, while the NII category received 6.46 times bids. The retail investors’ portion was booked 1.92 times and the employee category by 2.62 times.

ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, SBI Capital Markets are the book running lead managers of the Ajax Engineering IPO, while Link Intime India Private Ltd is the IPO registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.