Ajay Poly, a leading manufacturer of refrigeration sealing solutions, has filed draft papers with SEBI to raise funds through an initial public offering (IPO). The IPO will consist of a fresh issue worth Rs 238 crore and an offer-for-sale of 93 lakh shares by the company’s promoters, as per the draft red herring prospectus (DRHP) submitted on December 28.
The New Delhi-based company is also exploring a pre-IPO placement of up to Rs 47.6 crore before filing the red herring prospectus with the Registrar of Companies or launching the IPO. If successful, the fresh issue size will be adjusted accordingly.
Ajay Poly is dominating the sealing solution for refrigeration within 61% of market share in gaskets and 45.96% in profile extrusion within appliances, while leading suppliers of toughened glass are 15.4%. The company supplies its offerings to major Indian and foreign appliance manufacturers like Haier Appliances, Godrej & Boyce, IFB Refrigeration, and many other prestigious clients. Plant-based manufacturing facilities of this firm are located at an easily approachable distance, about 10 in number within India.
Of the fresh issue, Rs 119 crore will be utilised to retire debt, which will reduce the company’s borrowings from Rs 129 crore to just Rs 10 crore. Another Rs 65 crore will be used to purchase equipment, plant and machinery and the balance for general corporate purposes.
Ajay Poly has marked strong growth as regards financial performance for the last few years.
For the fiscal year 2024, the company’s profit stood at Rs 22.4 crore, up 74.6% over the previous fiscal year, while revenue rose 51.5% to Rs 364.4 crore during the same period. In the June quarter of 2024, the company reported a profit of Rs 12.3 crore, up 61% YoY, while revenue stood at Rs 130.1 crore, up 49% over the corresponding quarter of the previous year. The company’s consistent growth and market leadership position justify this IPO as a plus in the capital markets.
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Source: Moneycontrol
News Desk
