
Ajay Poly, a leading manufacturer of refrigeration sealing solutions, has filed its draft red herring prospectus (DRHP) with the capital markets regulator to launch an initial public offering (IPO). The IPO will comprise a fresh issue of ₹238 crore and an offer-for-sale (OFS) of 93 lakh shares by the company’s promoters, according to the DRHP filed on December 28.
Key Details of the IPO
- Fresh Issue: ₹238 crore
- Offer-for-Sale: 93 lakh equity shares by promoters
- Pre-IPO Placement: Ajay Poly may consider raising up to ₹47.6 crore through a pre-IPO placement. If completed, the fresh issue size will be adjusted accordingly.
- Lead Managers: Motilal Oswal Investment Advisors and SBI Capital Markets will oversee the public issue.
Market Leadership and Operations
Ajay Poly is a dominant player in India’s appliance industry, specializing in refrigeration sealing solutions, profile extrusion, and glass products. Key highlights include:
- Market Share:
- 61% in refrigeration sealing solutions (gaskets)
- 45.96% in profile extrusion
- 15.4% in toughened glass products for appliances
- Clients: The company caters to major Indian and multinational OEMs, including Haier Appliances, BSH Household Appliance Manufacturing, IFB Refrigeration, Godrej & Boyce, and Voltbek Home Appliances.
- Manufacturing Network: Ajay Poly operates ten manufacturing facilities across India.
Utilization of IPO Proceeds
The proceeds from the fresh issue will be allocated as follows:
- Debt Reduction: ₹119 crore will be used to repay borrowings, significantly reducing the company’s total debt, which stood at ₹129 crore.
- Capital Expenditure: ₹65 crore will be spent on purchasing equipment, plant, and machinery to enhance production capacity.
- General Corporate Purposes: The remainder of the funds will be used for operational needs.
Financial Performance
Ajay Poly has demonstrated strong financial growth:
- FY24 Results:
- Revenue: ₹364.4 crore (+51.5% YoY)
- Profit: ₹22.4 crore (+74.6% YoY)
- Q1 FY25:
- Revenue: ₹130.1 crore (+49% YoY)
- Profit: ₹12.3 crore (+61% YoY)