Aggcon Equipments, a leading player in India’s infrastructure equipment rental space, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to go for an IPO. Aggcon IPO consists of a fresh issue of equity shares aggregating up to INR 332.03 crore along with an offer for sale (OFS) of up to 9.4 million equity shares by promoters Jitender Aggarwal and Renu Aggarwal.
Here’s a detailed look at the company’s journey, financials, operational capabilities, market outlook and what this IPO means for investors and India’s infrastructure story.
🏗️ About Aggcon Equipments
Founded in 2003, Aggcon Equipments is today one of the fastest growing and most integrated equipment leasing companies in India, serving a wide range of infrastructure segments including roads, bridges, railways, metros, ports, power and industrial construction. Unique to the company is that it operates only in the rental segment – one of the few in the country to offer a complete fleet under a leasing-only model.
As of 31 March 2025, Aggcon has a fleet of 337 units across categories like road construction, earthmoving, concrete handling, foundation, material handling and aerial workspace equipment. The average age of the fleet is 2.91 years, indicating operational efficiency and modern infrastructure.
The company has executed or supported projects like Mumbai Trans Harbour Link, INS Varsha Submarine Base, Kudankulam Nuclear Power Plant and Dhubri-Phulbari bridge. It has also served clients like Afcons Infrastructure, Tata Projects, Monte Carlo, GR Infraprojects and others.
📈 Financial Performance: Robust, Scalable, and Profitable
Aggcon’s numbers tell a compelling story of growth and margin leadership:
| Metrics | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Opration | 111.00 | 137.29 | 164.02 |
| EBITDA | 67.07 | 81.19 | 100.58 |
| EBITDA Margin (%) | 60.42 | 59.14 | 61.32 |
| PAT | 27.92 | 22.64 | 30.72 |
| PAT Margin (%) | 24.96 | 16.36 | 18.60 |
| ROE (%) | 38.73 | 23.24 | 24.73 |
| ROCE (%) | 20.55 | 16.58 | 15.05 |
Aggcon’s Return on Equity of 24.73% in FY25 places it among the top two players in the sector. However, rising net debt and leverage metrics (Net Debt/Equity of 2.73x in FY25) warrant close investor attention.
🛠️ Use of Proceeds: Focused on Growth and Debt Reduction
The net proceeds from the fresh issue are expected to be deployed as follows:
- INR 168.00 crore for repayment/prepayment of certain borrowings
- INR 84.04 crore towards capital expenditure for new equipment
- Balance for general corporate purposes
This strategy should directly improve Aggcon’s leverage ratios and expand its fleet to meet rising demand from India’s infrastructure build-out.
Industry Overview
India’s infrastructure capex is on a historic upswing. From INR 3.2 lakh crore in FY19 to INR 11.2 lakh crore by FY26, the government’s focus on roads, railways, ports, power, and urban development makes the environment ripe for players like Aggcon. Under the National Infrastructure Pipeline (NIP), over INR 111 lakh crore is being channelled into capital-intensive sectors.
The company stands to benefit from:
- A 5.1% CAGR in India’s road network expansion by FY30
- Electrification and modernisation of Indian Railways
- Robust investments in hydro, solar, and thermal power infrastructure
- Increased adoption of leasing as a capital-light model for contractors
🌐 Operational Strength: Pan-India Reach, Loyal Clients, OEM Partnerships
Aggcon serves 500+ customers across 27 states and 5 union territories, with a strong regional revenue distribution:
- West India: 35.12% of FY25 revenue
- South India: 26.68%
- North India: 20.31%
- East India: 17.89%
Its top 12 clients have been with the company for over 5 years and contribute nearly INR 76,1 crore in annual revenue. Equipment is sourced from globally reputed OEMs like L&T, Wirtgen, Sany, Hyundai, JCB, Caterpillar, and Schwing Stetter.
Conclusion
Aggcon Equipments is at the intersection of India’s infrastructure story and evolving construction models. With sector-leading margins, national presence, growing fleet and focused rental-only approach, the IPO could be an attractive play for long-term investors betting on India’s growth story.
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