Ajax Engineering Ltd., a concrete equipment manufacturer with a range of concrete equipment, services and solutions across the concrete application value chain has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The company is backed by Kedaara Capital.

The IPO of the Bengaluru headquartered company consists of an Offer for Sale (OFS) of up to 2.28 crore equity shares by the Selling Shareholders.

Company’s portfolio

Incorporated in 1992, Ajax Engineering has developed a comprehensive product portfolio that includes equipment such as self-loading concrete mixers (SLCMs) and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps and self-propelled boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete.

Co-founded by Krishnaswamy Vijay, Executive Chairman, late Jacob John and late Anil Kumar Singh, the company operates four assembling and manufacturing facilities located at Obadenahalli, Gowribidanur and Bashettihalli in Karnataka, each specialising in distinct product lines. The assembling and manufacturing facility at Adinarayanahosahalli, Karnataka is currently under construction and expected to become operational in March 2025. 

As of March 31, this year, company’s dealer network comprised of 51 dealerships across 23 States in India and has expanded its global reach with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa.

75% share in India’s SLCM market

Ajax which is one of the three largest manufacturers of SLCMs in the world, with an approximately 75% market share in the SLCM market in India (in terms of number of SLCMs sold in FY24) reported FY24 revenue from operations at ₹1741 crore with a PAT of ₹225 crore.

According to the Redseer Report, infrastructure development is projected to propel the demand for mechanised concrete equipment in India and grow the industry from ₹6,100 crore for FY24 to ₹17,800 crore for FY29.

The concrete equipment market in India, and in particular, the market for SLCMs, is experiencing significant growth on account of several factors, including an increase in cement consumption and an increase in public and private capital expenditure towards infrastructure, irrigation, housing and renewable power projects, leading to increased demand for construction materials and equipment, as per the report.