Ajay Poly's IPO Journey: Sealing Success in the Market

Ajay Poly has filed for an IPO to raise funds, aiming to clear debts and fund capital expenses. The offer includes a fresh issue of Rs 238 crore and an offer-for-sale of 93 lakh shares. The firm holds a strong market position in India's refrigeration sealing solutions industry.

Ajay Poly has submitted its draft red herring prospectus to the Securities and Exchange Board of India (Sebi), seeking to initiate an initial public offering (IPO) to fund its future endeavors. The IPO comprises a fresh issue of shares amounting to Rs 238 crore and an offer-for-sale of 93 lakh shares by its promoters.

In the offer-for-sale segment, promoter Bina Jain plans to sell 37 lakh shares, while Rajeev Jain and Nitin Jain will divest 28 lakh shares each. Consideration of a pre-IPO share placement worth Rs 47.6 crore could adjust the fresh issue size. The fund allocation includes Rs 119 crore for debt clearance, Rs 64.97 crore for capital expenditure on new equipment, and other general corporate purposes.

Ajay Poly, a leader in India's refrigeration sealing solutions, operates ten manufacturing facilities nationwide. Products include door gaskets and magnetic strips, serving sectors like consumer durables and automotive. The company reported revenue of Rs 130.13 crore and profit after tax of Rs 12.29 crore for Q1 FY2024. Motilal Oswal Investment Advisors and SBI Capital Markets Ltd are managing the book-running, with KFin Technologies Ltd as the registrar.

(With inputs from agencies.)