SBI Funds Invests Rs 212 cr in Ajax Engineering IPO

New Delhi, Feb 8 (PTI) SBI Funds Management Ltd, through its two funds, has invested Rs 212 crore in concrete equipment manufacturer Ajax Engineering ahead of the IPO opening for public subscription.

The funds were invested through SBI Magnum Children's Benefit Fund and SBI Infrastructure Fund.

According to a public announcement made by Ajax Engineering, a share purchase agreement was entered on February 5 between the promoter Jacob Hansen Family Trust and SBI Funds Management Ltd.

Under the agreement, Jacob Hansen Family Trust transferred a total of 27.02 lakh shares to the two funds --SBI Magnum Children's Benefit Fund - Investment Plan and SBI Infrastructure Fund -- at Rs 629 apiece. This aggregates the transaction size to Rs 170 crore.

Individually, 19.07 lakh equity shares were transferred to SBI Magnum Children's Benefit Fund - Investment Plan and 7.95 lakh shares to SBI Infrastructure Fund.

SBI Funds Management will hold a 2.94 per cent stake in the company post-IPO.

On January 7, SBI Funds Management was allocated 11.03 per cent of the total funds mobilised from anchor investors with 3.17 lakh shares allocated to SBI Magnum Children's Benefit Fund and 3.47 lakh shares to SBI Infrastructure Fund.

These shares were sold at a price of Rs 629 apiece, aggregating the transaction size to nearly Rs 42 crore.

These two transactions translate into an investment of Rs 212 crore.

The Bengaluru-headquartered company's Rs 1,269-crore initial share sale will open for public subscription during February 10 to 12. The company has set a price band of Rs 599 to Rs 629 per share.

The company's market capitalisation has been pegged at Rs 7,200 crore at the upper end of the price band.

The company's initial public offering (IPO) is a complete offer-for-sale (OFS) of 2.01 crore shares by its promoters and an investor shareholder.

As part of the OFS, Kedaara Capital will offload 74.37 lakh shares.

On Friday, the concrete equipment manufacturer mobilised over Rs 379 crore from a slew of anchor investors.

Ajax Engineering is a leading concrete equipment manufacturer with a comprehensive range of related equipment, services and solutions across the concrete application value chain. The company operates four assembling and manufacturing facilities in Karnataka, each specializing in distinct product lines.

Besides, an assembling and manufacturing facility at Adinarayanahosahalli, Karnataka is under construction and expected to become operational in August 2025.

ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management and SBI Capital Markets are the book running lead managers to the issue.