Customers include Haier Appliances (India), BSH, Seaga India, and Frigoglass India, Godrej & Boyce, Voltbek, and IFB Refrigeration
MUMBAI, Dec 30 (The CONNECT) – Delhi-based Refrigeration Sealing Solutions Company, Ajay Poly Limited, has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an Initial Public Offering (IPO).
The IPO with a face value of Re 1 is a mix of fresh issue of shares of up to Rs. 238 crore and an offer for sale (OFS) of up to 93,00,000 equity shares each by Promoter and Investor Selling Shareholders.
The Offer of Sale consists of shareholders selling shares up to 37,00,000 equity shares by Bina Jain, up to 28,00,000 equity shares by Rajeev Jain, and up to 28,00,000 equity shares by Nitin Jain.
Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited are the sole book-running lead managers and KFin Technologies Limited is the registrar to the issue. The equity shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.
The company, in consultation with the BRLMS, may consider a pre-IPO placement of specified securities aggregating up to Rs. 47.60 crores. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The proceeds from the fresh issue to the extent of Rs. 119 crores for repayment or prepayment in full or part of all or certain outstanding borrowings availed by the Company; Rs 64.97 crore for funding capital expenditure requirements towards the purchase of equipment, plant, and machinery at Noida Unit-IV, Noida Unit-V, Karegaon Unit, Shirwal Unit, Chennai Unit, and its registered office; and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual investors respectively.
Ajay Poly Limited is one of India’s foremost manufacturers of refrigeration sealing solutions, profile extrusion, and glass products for the appliance industry, holding significant market shares in Fiscal 2024, according to an F&S Report mentioned in the DRHP. The company commands 61% of the market in refrigeration sealing solutions (gaskets), 25.2% in rigid profile extrusion, and 45.96% in total profile extrusion. Additionally, it holds 31.3% and 15.4% market shares in household refrigeration glass shelves and overall toughened glass products for the appliance industry, respectively.
Specializing in a diverse range of products, Ajay Poly offers toughened glass solutions, polymer extrusion products, magnetic materials, and magnet powders. Its product portfolio includes refrigerator door gaskets, thermoplastic extruded profiles, magnetic strips, polymer sheet extrusions, refrigerator glass shelves, refrigerator glass doors, microwave glass doors, washing machine glass lids, and various toughened glass components for appliances. The company caters to sectors such as consumer durables, commercial refrigeration, and automotive industries.
Ajay Poly collaborates closely with leading multinational and Indian appliance manufacturers, contributing to the design and development of custom solutions. Its expansive customer base includes prominent multinational OEMs such as Haier Appliances (India), BSH Household Appliances, Seaga India, and Frigoglass India, alongside renowned Indian OEMs like Godrej & Boyce, Voltbek Home Appliances, and IFB Refrigeration. High customer retention highlights the company’s focus on strong, long-term partnerships.
The company operates ten strategically located manufacturing facilities across India, optimizing logistics and reducing lead times for delivery. These facilities are positioned near major appliance manufacturing hubs in key regions: five in Greater Noida (NCR), two in Maharashtra (Karegaon and Shirwal), and one each in Sanand (Gujarat), Mohali (Punjab), and Chennai (Tamil Nadu).
As on June 30, 2024, Ajay Poly had an impressive annual installed capacities, including 91,353,600 meters of soft profile extrusion, 14,040,000 meters of rigid profile extrusion, 3,903,600 square meters of toughened glass, 63,648,000 meters of magnetic strips, 12,532 tonnes of PVC compound, 2,156 tonnes of epoxidized soybean oil, 6,000 tonnes of sheet extrusion, and 10,296 tonnes of magnet powder.
The company has undertaken backward integration initiatives, to enhance its production capabilities in key areas such as soft profile extrusion (gasket production), in-house PVC compound and plasticizer manufacturing, machinery assembly, and the production of magnet powders and strips. The strategic integration, coupled with a robust product portfolio and a strong customer base, positions Ajay Poly Limited as a leader in the appliance industry, delivering value-driven solutions with efficiency and innovation.
In the past three fiscal years, revenue from operations has grown at a CAGR of 60.38% from ₹141.67 crore in Fiscal 2022 to ₹364.41 crore in Fiscal 2024. Profit after tax grew at a CAGR of 157.08% from ₹3.39 crore in Fiscal 2022 to ₹22.41 crore in Fiscal 2024.
For the three months ended June 30, 2024, revenue from operations stood at Rs. 130.13 crore, and profit after tax stood at Rs. 12.29 crore.
