Upcoming IPO: Refrigeration sealing solutions provider Ajay Poly files DRHP

Delhi-based, Ajay Poly, manufacturer of refrigeration sealing solutions, is preparing to go public as the company has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). 

The IPO will include a fresh issue of shares worth Rs 238 crore and an offer for sale (OFS) of up to 9.3 million equity shares by promoters, as per the DRHP.  The OFS will see Bina Jain, Rajeev Jain, and Nitin Jain divesting 3.7 million, 2.8 million, and 2.8 million equity shares, respectively. Ajay Poly may also consider a pre-IPO placement of Rs 47.60 crore. If completed, the amount raised will reduce the size of the fresh issue.

 

The proceeds from the fresh issue will be used for repayment or prepayment of certain borrowings, funding capital expenditure for purchasing equipment and machinery at facilities in Noida, Karegaon, Shirwal, Chennai, and the corporate office, and general corporate purposes. The company in its DRHP said that it will not receive any proceeds from the OFS.

 

The IPO will follow a book-building process, allocating not more than 50 per cent of the net offer to qualified institutional buyers (QIBs), at least 15 per cent to non-institutional investors (NIIs), and 35 per cent to retail individual investors (RIIs).

 

KFin Technologies is the registrar for the issue, with Motilal Oswal Investment Advisors, and SBI Capital Markets acting as book-running lead managers. The equity shares will be listed on the BSE and NSE.

 

Ajay Poly is a manufacturer 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.  Its diverse product portfolio includes refrigerator door gaskets, magnetic strips, polymer extrusions, glass shelves, and components for consumer durables, commercial refrigeration, and the automotive industry.

 

As per its DRHP, the company held strong market shares in FY24, including 61 per cent in refrigeration sealing solutions, 25.2 per cent in rigid profile extrusion, 45.96 per cent in total profile extrusion, 31.3 per cent in household refrigeration glass shelves, and 15.4 per cent in toughened glass products for appliances.