Ajay Poly Submits IPO Draft to Sebi for Rs 238 Crore Fundraising Initiative

Ajay Poly, a company specialising in refrigeration sealing solutions, has submitted its draft red herring prospectus to Sebi. The aim is to raise funds through an initial public offering (IPO). This IPO will include a fresh issue of shares worth up to Rs 238 crore and an offer-for-sale (OFS) of up to 93 lakh equity shares by the promoters.

The OFS will see promoter Bina Jain selling 37 lakh shares, while Rajeev Jain and Nitin Jain will each sell 28 lakh shares. Additionally, Ajay Poly may opt for a pre-IPO placement of shares valued at Rs 47.6 crore. Should this pre-IPO placement occur, the fresh issue size will be adjusted accordingly.

Utilisation of IPO Proceeds

The funds from the fresh issue are earmarked for several purposes. Ajay Poly plans to allocate Rs 119 crore towards debt repayment. Another Rs 64.97 crore will be used for capital expenditure, specifically for purchasing equipment and machinery at various units, including Noida, Karegaon, Shirwal, Chennai, and the registered office.

A portion of the proceeds will also support general corporate needs. Ajay Poly is recognised as a leading manufacturer in India for refrigeration sealing solutions and related products. According to an F&S report, it held significant market shares in fiscal 2024.

Product Portfolio and Market Reach

Ajay Poly's product range includes toughened glass solutions, polymer extrusion products, magnetic materials, and magnet powders. Their offerings extend to refrigerator door gaskets, magnetic strips, and refrigerator glass shelves. The company serves industries such as consumer durables, commercial refrigeration, and automotive sectors.

To optimise logistics and reduce delivery times, Ajay Poly operates ten manufacturing facilities across India. These include five in Greater Noida and two in Maharashtra. For the quarter ending June 30, 2024, the company's revenue from operations was Rs 130.13 crore with a profit after tax of Rs 12.29 crore.

Motilal Oswal Investment Advisors and SBI Capital Markets Ltd are managing the book-running for this public issue. KFin Technologies Ltd has been appointed as the registrar for the IPO process.