Refrigeration sealing solutions provider Ajay Poly has filed draft papers with the capital markets to raise funds via initial public offering. The IPO will be a combination of fresh issue of Rs 238 crore, and an offer-for-sale of 93 lakh shares by promoters, as per the DRHP filed on December 28.
The New Delhi-based company may consider a pre-IPO placement of up to Rs 47.6 crore before the filing of red herring prospectus with the Registrar of Companies or before the IPO launch. If the company raises such amount, the fresh issue size will get reduced accordingly.
Ajay Poly claimed to be one of leading manufacturers of refrigeration sealing solutions, profile extrusion and glass products for the appliance industry in India, with 61% market share in refrigeration sealing solutions (gaskets), 45.96% in total profile extrusion, and 15.4% share in overall toughened glass products for appliance industry.
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With ten manufacturing facilities across India, it caters to several Indian and multinational appliance OEM (original equipment manufacturer) customers include Haier Appliances (India), BSH Household Appliance Manufacturing, Seaga India, Frigoglass India. Godrej & Boyce Manufacturing Company, Voltbek Home Appliances, and IFB Refrigeration.
Ajay Poly intends to use Rs 119 crore out of fresh issue proceeds for repaying its debt which in fact will significantly reduce the debt burden as its total borrowings were Rs 129 crore. Further, Rs 65 crore funds will be utilised for purchase of equipment, plant and machinery, and the remainder funds for general corporate purposes.
The financial performance of the company remained strong in the past years with profit in the fiscal 2024 growing 74.6 percent to Rs 22.4 crore compared to previous fiscal and revenue increasing by 51.5 percent to Rs 364.4 crore in the same period. Profit in quarter ended June 2024 at Rs 12.3 crore grew by 61 percent over a year-ago period and revenue at Rs 130.1 crore jumped by 49 percent compared to corresponding period previous fiscal.
The merchant bankers handling the public issue will be Motilal Oswal Investment Advisors, and SBI Capital Markets.
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