Ajay Poly files preliminary papers with Sebi to mop up funds via IPO

Refrigeration sealing solutions firm Ajay Poly has filed its draft red herring prospectus with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The initial public offer is a mix of fresh issue of shares of up to Rs 238 crore and an offer-for-sale (OFS) of up to 93 lakh equity shares each by the promoters, as per the draft red herring prospectus (DRHP) filed on December 28.

Under the OFS, 37 lakh shares will be sold by promoter Bina Jain, while Rajeev Jain and Nitin Jain will offload 28 lakh shares each.

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

The proceeds from the fresh issue will be utilised by the company to the extent of Rs 119 crore for debt payment, Rs 64.97 crore for funding capital expenditure requirements towards the purchase of equipment, plant, and machinery at Noida Unit, Karegaon, Shirwal, Chennai Unit, and its registered office.

A part of the proceeds will also be used by the company towards general corporate purposes.

Ajay Poly stood as 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.

The company offers toughened glass solutions, polymer extrusion products, magnetic materials, and magnet powders. Its product portfolio includes refrigerator door gaskets, magnetic strips, and refrigerator glass shelves.

It caters to sectors like consumer durables, commercial refrigeration, and automotive industries.

The company operates ten strategically located manufacturing facilities across the country, including five in Greater Noida, and two in Maharashtra for optimising logistics and reducing lead times for delivery.

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.

Motilal Oswal Investment Advisors and SBI Capital Markets Ltd are the book-running lead managers, while KFin Technologies Ltd is the registrar for the public issue.