Ajay Poly, a key player in the refrigeration sealing solutions market, has filed its offer prospectus with the Securities and Exchange Board of India (SEBI). The company is expecting to raise INR 238 crore from fresh issue. The issue is combining of a fresh issue and an offer-for-sale (OFS).
Ahead of the IPO, Ajay Poly is contemplating a pre-IPO placement of up to INR 47.6 crore. Should this placement materialize, the fresh issue size will be trimmed accordingly. This approach offers flexibility as the company fine-tunes its strategy leading up to the IPO launch.
The Company at a Glance
Ajay Poly has carved out a dominant position in India’s appliance component sector. It is particularly known for refrigeration sealing systems, profile extrusions, and toughened glass products. The company boasts a commanding 61% share in refrigeration sealing solutions, 45.96% in profile extrusions, and 15.4% in toughened glass products tailored for appliances.
Ajay Poly’s offerings cater to varied industrial needs, with products spanning multiple categories:
- Toughened Glass Products – Found in refrigerators, microwaves, and washing machines.
- Polymer Extrusions – Soft and rigid profiles for sealing systems and commercial applications.
- Magnet Products – Magnetic strips and powders for gaskets and automotive parts.
- PVC Compounds – Profiles and sheets designed for industrial use.
Manufacturing Footprint
Ajay Poly operates 10 manufacturing units strategically spread across India, ensuring broad coverage and logistical efficiency.
- Greater Noida (NCR) – Home to five production facilities.
- Maharashtra – Two units in Karegaon and Shirwal.
- Other Locations – Sanand (Gujarat), Mohali (Punjab), and Chennai (Tamil Nadu).
Key production stats include:
- 91.35 million meters of soft profile extrusion capacity.
- 14.04 million meters of rigid profile extrusion.
- 3.9 million square meters of toughened glass.
- 63.65 million meters of magnetic strips.
- 12,532 tonnes of PVC compounds.
- 6,000 tonnes of sheet extrusion.
- 10,296 tonnes of magnet powder.
Ajay Poly’s Financial Snapshot
Ajay Poly’s growth trajectory paints a promising picture.
- Revenue Surge – INR 364.4 crore in FY 2024, a 51.5% leap from INR 240.49 crore in FY 2023.
- Net Profit Climb – INR 22.4 crore in FY 2024, soaring 74.6% over INR 12.8 crore in FY 2023.
- June 2024 Quarter – Revenue of INR 130.1 crore, reflecting 49% year-on-year growth, and profit of INR 12.3 crore, a 61% jump.
IPO Structure and Promoter Details
- Fresh Issue – INR 238 crore.
- Offer-for-Sale (OFS) – 93 lakh equity shares offloaded by promoters.
Promoter Selling Shareholders
- Bina Jain – Up to 37 lakh shares.
- Rajeev Jain – Up to 28 lakh shares.
- Nitin Jain – Up to 28 lakh shares.
Deployment of Funds
Proceeds from the IPO will fuel multiple initiatives:
- Debt Reduction – INR 119 crore allocated for repayment or prepayment of loans, targeting a reduction in the company’s INR 129 crore borrowings.
- Capital Investment – INR 65 crore to upgrade equipment and expand facilities in Noida, Maharashtra, and Chennai.
- General Corporate Purposes – Residual funds will support day-to-day operations.
Competitive Edge and Clientele
Ajay Poly’s established partnerships underscore its reliability. Its clientele features some of India’s top appliance manufacturers:
- Haier Appliances India.
- BSH Household Appliance Manufacturing.
- Seaga India.
- Frigoglass India.
- Godrej & Boyce Manufacturing Company.
- Voltbek Home Appliances.
- IFB Refrigeration.
The company maintains a strong customer retention record, with 99.39% of revenue stemming from repeat buyers and an average nine-year relationship with its top 10 clients.
Key Advisors
Ajay Poly has roped in experienced intermediaries to steer its IPO process:
- Lead Managers – Motilal Oswal Investment Advisors and SBI Capital Markets.
- Registrar – KFin Technologies
Final Takeaway
Ajay Poly’s planned IPO highlights its growth ambitions and established presence in India’s appliance components sector. Its financial momentum, diversified portfolio, and longstanding client relationships position it as a compelling investment prospect. Yet, as always, prospective investors should carefully review disclosures and assess potential risks before diving in. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
