Ajay Poly Files Draft Papers for IPO to Raise Funds

Ajay Poly, a prominent player in the refrigeration sealing solutions and appliance industry, has filed draft papers with the capital markets to raise funds through an Initial Public Offering (IPO). The IPO will include a fresh issue of Rs 238 crore and an offer-for-sale of 93 lakh shares by the company's promoters. The New Delhi-based company may also consider a pre-IPO placement of up to Rs 47.6 crore, which could reduce the size of the fresh issue proportionately.

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Overview of Ajay Poly and Its Market Position

Ajay Poly is a leader in the refrigeration sealing solutions sector, boasting a 61% market share in gaskets. Additionally, the company holds a 45.96% share in total profile extrusion and a 15.4% share in toughened glass products for the appliance industry in India. Ajay Poly’s portfolio includes ten manufacturing facilities across the country, catering to both domestic and multinational OEM clients such as Haier Appliances, Godrej & Boyce Manufacturing, BSH Household Appliance Manufacturing, and IFB Refrigeration.

The company plans to utilize Rs 119 crore from the fresh issue proceeds to significantly reduce its debt, which stands at Rs 129 crore. Another Rs 65 crore will be allocated for purchasing equipment, plant, and machinery, while the remaining funds will go towards general corporate purposes. This strategic fund allocation aims to strengthen Ajay Poly’s financial position and enhance its production capacity.

Financial Performance and Growth Trajectory

Ajay Poly has demonstrated robust financial performance over recent years. In fiscal 2024, the company’s profit surged by 74.6% to Rs 22.4 crore, compared to the previous fiscal, while revenue increased by an impressive 51.5% to Rs 364.4 crore during the same period. In the quarter ending June 2024, Ajay Poly’s profit rose by 61% year-on-year to Rs 12.3 crore, and revenue climbed 49% to Rs 130.1 crore compared to the corresponding quarter in the previous fiscal.

This consistent growth reflects the company’s ability to capitalize on market opportunities and maintain a competitive edge in the appliance industry. Its strong order book and reputed clientele further reinforce its market leadership and growth potential.

Ajay Poly’s Competitive Edge

Ajay Poly’s extensive product range, coupled with its dominance in key market segments, positions it as a preferred supplier for leading appliance manufacturers. The company’s investment in state-of-the-art manufacturing facilities and its focus on indigenization enable it to offer high-quality products tailored to customer requirements.

With a clear strategy to utilize IPO proceeds for debt reduction and capacity expansion, Ajay Poly aims to strengthen its operational capabilities and improve profitability. This approach not only aligns with its growth ambitions but also provides a solid foundation for sustainable development.

Conclusion

Ajay Poly’s IPO marks a significant milestone in its growth journey, offering investors an opportunity to participate in a thriving company with a strong market position and robust financial performance. By leveraging the proceeds to reduce debt and enhance production capabilities, Ajay Poly is poised to consolidate its leadership in the appliance industry and drive long-term value creation for stakeholders. The company’s proven track record, extensive client base, and focus on innovation make it a promising contender in the capital market. Investors are advised to monitor the IPO closely as it progresses.