Ajay Poly, a leading manufacturer based out of Delhi, known for its refrigeration sealing solutions, has recently announced its plans to go public. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the stage for an intriguing initial public offering (IPO).
Ajay Poly’s IPO is structured to include a fresh issue of shares totalling ₹238 crore alongside an offer for sale (OFS) of up to 9.3 million equity shares by its promoters. The Jain family—Bina Jain, Rajeev Jain, and Nitin Jain—are set to divest a significant portion of their holdings, summing up to a combined 9.3 million shares. There’s also a buzz about a potential pre-IPO placement worth ₹47.60 crore. If this goes through, it would subsequently reduce the size of the fresh issue planned for the public offering.
The proceeds from the fresh issue are earmarked for several critical areas. Ajay Poly plans to repay or prepay some of its borrowings, which is always good for solidifying a company’s financial health. They’re also looking to inject some cash into capital expenditures for purchasing new equipment and machinery for their facilities spread across Noida, Karegaon, Shirwal, and Chennai, as well as their corporate office. This should boost their production capabilities significantly.
It’s worth noting that the funds raised from the OFS will go directly to the selling shareholders and not the company.
KFin Technologies has been appointed as the registrar for the technicalities of the IPO. Motilal Oswal Investment Advisors and SBI Capital Markets will manage the IPO, acting as the book-running lead managers. For those interested in buying a piece of Ajay Poly, the shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Ajay Poly holds a dominant position in the market, especially in manufacturing refrigerator door gaskets, magnetic strips, and other polymer extrusions. According to its DRHP, the company held impressive market shares in Fiscal 2024, including a 61% share in refrigeration sealing solutions and significant%ages in various other categories like rigid profile extrusion and glass shelves for household refrigeration.
Ajay Poly presents a promising opportunity for potential investors, especially considering its strong market position and expansion plans. The IPO will follow a book-building process where shares are allocated across different investor categories: 50% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail individual investors (RIIs).
This IPO could be a golden ticket for those looking to invest in a company with a robust product portfolio and a solid footprint in the appliance industry. Keep your eyes peeled for more updates as Ajay Poly debits on the stock market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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