Ajay Poly Limited Filed DRHP With SEBI To Raise Funds Via IPO

Ajay Poly Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise funds. The IPO consists of a combination of a fresh issue of shares, up to ₹238 crore, and an offer-for-sale (OFS) of up to 93 lakh equity shares by the company’s promoters, according to the DRHP filed on December 28.

As part of the OFS, promoter Bina Jain will sell 37 lakh shares, while Rajeev Jain and Nitin Jain will each offload 28 lakh shares.

Additionally, the company may consider a pre-IPO placement of shares worth up to ₹47.6 crore. If the pre-IPO placement is completed, the size of the fresh issue will be reduced accordingly.

Use of IPO Proceeds

The funds raised from the fresh issue will be allocated as follows: ₹119 crore for debt repayment, and ₹64.97 crore for capital expenditure related to the purchase of equipment, plant, and machinery at various units. A portion of the proceeds will also be used for general corporate purposes.

About Ajay Poly Limited 

Ajay Poly is a leading manufacturer in India specializing in refrigeration sealing solutions, profile extrusion, and glass products for the appliance industry. The company held a significant market share in fiscal 2024. Ajay Poly offers a diverse range of products, including toughened glass solutions, polymer extrusion products, magnetic materials, and magnet powders. Its product portfolio includes refrigerator door gaskets, magnetic strips, and glass shelves for refrigerators.

The company serves multiple sectors, including consumer durables, commercial refrigeration, and the automotive industry. Ajay Poly operates ten strategically located manufacturing facilities across India, including five in Greater Noida and two in Maharashtra, to optimize logistics and reduce lead times for delivery. For the three months ending June 30, 2024, Ajay Poly reported a revenue of ₹130.13 crore and a profit after tax of ₹12.29 crore.

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