Ajax Engineering, a company that makes machines for mixing concrete, has launched its IPO (Initial Public Offering) from February 10 to 12, 2025, to raise money from the public. But it seems like investors aren't rushing to grab these shares. Let's break down what's happening in simple terms.
What's an IPO Anyway?
Imagine Ajax Engineering is like a lemonade stand that's doing really well. To grow even bigger, they need more money. So, they decide to sell a small piece of their company to the public in the form of shares. This is called an IPO. People can buy these shares, hoping the company does well, and the value of their shares increases.
Ajax Engineering's IPO: The Details
- Price of a Share: ₹599 to ₹629.
- Minimum Investment: You need to buy at least 23 shares, costing around ₹14,467.
- What's the Money For? The company isn't actually raising new funds. Instead, some of the current owners are selling their shares to the public.
- Listing: The shares will be available for trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) from February 17, 2025.
Why the Slow Start?
On the first day, the IPO was only subscribed 8%. By the second day, it had only reached 20%. This means that only a small portion of the shares offered have been bought by investors.
- Offer-For-Sale: The IPO isn't raising fresh funds for the company; it's an offer-for-sale by existing shareholders.
- Muted Response: The IPO has received a muted response from investors.
- Grey Market Premium: Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of around 7% at Rs 675 per share on February 10.
Who's Investing?
- Qualified Institutional Buyers (QIBs): These are big investors like banks and insurance companies. They were slow to bid initially but have shown more interest.
- Non-Institutional Investors (NIIs): These are wealthy individuals. Their portion was subscribed 8% on day one.
- Retail Individual Investors (RIIs): These are regular folks like you and me. Their portion was booked only 14% on the first day.
Company Check
Ajax Engineering makes concrete equipment and holds a significant market share in the self-loading concrete mixers segment. The company has shown good financial performance, with profits and revenue increasing in the past years.
Should You Invest?
That's the big question! Investing in an IPO can be exciting, but it's also risky. It's essential to do your homework and understand the company before putting your money in. Consider Ajax Engineering's strengths, but also be aware of the slow subscription rate
Keep an Eye On
The IPO is open until February 12, 2025. Keep an eye on the subscription numbers to see if investors become more interested. The allotment of shares will be finalized by February 13, and trading will begin on February 17.
With inputs from agencies
Image Source: Multiple agencies
© Copyright 2024. All Rights Reserved Powered by Vygr Media.
