Ajay Poly Ltd IPO

About Ajay Poly Ltd IPO

The initial public offering (IPO) of Ajay Poly Ltd. consists of a fresh issue size of equity shares with a face value of ₹1 each, aggregating up to ₹238 crore. The offer for sale includes up to 9,300,000 equity shares of ₹1 each, with the total amount yet to be disclosed. The total offer size will be determined based on the fresh issue and offer for sale components. The basis of allotment will take place on TBA. The credit of shares will take place on TBA and the initiation of refunds will take place on TBA.

Objectives of Ajay Poly Ltd IPO

The money raised from this issue, after deducting related expenses, will be used for the following purposes:

1. Repaying or prepaying, some of the loans taken by the company.
2. Buying equipment, plant, and machinery for various company units in Noida (Unit-IV & Unit-V), Karegaon, Shirwal, Chennai, and the corporate office.
3. General corporate purposes.

Industry Outlook

1. China +1 strategy
Global companies are diversifying supply chains away from China, which benefits India. Initiatives like Make in India and PLI schemes make India an attractive alternative.

2. Demographic dividend and skilled workforce
Unlike China’s rapidly ageing population, India has the largest young workforce among its peers. In fact, India is the only major economy where supply is growing faster than the demand for workforce. Many government initiatives focus on skill development, thus creating a technically trained labour force.

3. Improved business environment
India’s ‘Ease of Doing Business’ rank improved significantly – from 142 in 2014 to 63 in 2019. Infrastructure growth and digital advancements have also played a huge role in streamlining trade. In terms of government initiatives, Make in India and PLI schemes have contributed significantly to boost manufacturing and exports.

4. Other driving factors

• Large domestic consumption base – Growing middle-class consumption makes India a key electronics market. The demand for white goods and consumer durables in rural India is experiencing significant growth, driven by the convergence of digitalization, e-commerce expansion, rising affluence, improved infrastructure, and rural electrification.

• Trade agreements and global relations – India has signed multiple trade pacts to enhance global market access, making India an attractive option for global companies that are looking to diversify their supply chains.

• Innovation and R&D – Initiatives like Startup India, Atal Innovation Mission (AIM), The National Innovation Foundation (NIF), etc drive technological advancements and attract foreign investment.

Ajay Poly Ltd Information

Ajay Poly Pvt. Ltd., based in New Delhi, India, is one of the country's leading manufacturers of refrigeration sealing solutions, profile extrusion, and glass products for the appliance industry.

Specialising in toughened glass products, polymer extrusion, magnet powders, and magnetic products, its offerings include refrigerator door gaskets, thermoplastic extruded profiles, magnetic strips, polymer sheets, refrigerator glass shelves and doors, microwave glass doors, washing machine glass lids, and various toughened glass components for appliances.

Serving sectors such as consumer durables, commercial refrigeration, and automotive, Ajay Poly collaborates with leading multinational and Indian appliance manufacturers on design and development. The company operates ten strategically located manufacturing facilities across India, positioned near key appliance manufacturing hubs of major OEM players.

Risks of Ajay Poly Ltd. IPO

1. Customer concentration risk
The company derives a significant portion of its revenue from its top ten customers, with the largest customer contributing 34.47% of total revenue in Fiscal 2024. A loss or reduction in orders from any of these key customers could adversely impact revenue, profitability, and overall business stability.

2. Product dependency risk
A substantial portion of the company's revenue comes from toughened glass and polymer extrusion products. Limited diversification and a potential decline in demand for soft profile extrusion and glass product lines could materially affect its financial performance and growth prospects.

3. Raw material and supply chain risk
The company's profitability is highly dependent on the availability and cost of key raw materials, including PVC resin, clear float glass, and refined soya bean oil, which are subject to global market volatility. Supply disruptions, price fluctuations linked to crude oil prices, geopolitical tensions, and global shipping costs, could negatively affect operations and margins.

Anchor Investing Bidding Date: TBA

IPO Registrar and Book Running Lead Manager

Registrar - KFIN Technologies Limited

Book Running Lead Managers - SBI Capital Markets Limited, Motilal Oswal Investment Advisors Limited

Business Model

Ajay Poly Limited (APL), established in 1991 and a part of the DCJ Group, specialises in manufacturing polymer extruded and glass products, catering primarily to the home appliance industry.

Ajay Poly is India's leading manufacturer and supplier of refrigeration sealing systems (gasket assemblies) and extruded profiles used in appliances, holding a market share of approximately 61.0%, 65.2%, and 49.0% in gasket assemblies, 25.2%, 26.4%, and 21.0% in rigid profiles, and an overall market share of 45.9%, 48.9%, and 37.5% in extruded profiles used in appliances for FY2024, FY2023, and FY2022, respectively.

Additionally, the company is a key player in the toughened glass segment for appliances, with a 31.3% market share in refrigerator glass shelves, 20.1% in refrigerator glass doors, 27.3% in microwave glass doors, and an overall 15.4% market share in toughened glass used in appliances in FY2024.

Ajay Poly Ltd Growth Trajectory

Over the last few years, the company's revenue from operations has shown significant growth, increasing from ₹ 141.677 crore in FY22 to ₹ 364.415 crores in FY24. EBITDA margin has also improved remarkably, rising from 7.49% in FY22 to 13.38% in FY24.

How to check allotment status of Ajay Poly Ltd IPO?

1. Visit the Registrar's Website

Go to the official website of KFin Technologies, the registrar for this IPO. KFin's website has a page for checking IPO allotment status. On this page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then click the 'Submit' button. Your allotment status will be displayed.

The KFin IPO allotment status page is: https://ris.kfintech.com/ipostatus/

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose 'Ajay Poly Ltd.' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your 'Ajay Poly Ltd allotment status will be displayed.

1. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check 'Ajay Poly Ltd. allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your ‘Ajay Poly Ltd IPO’ bid and allotment details will be displayed.

How to apply for Ajay Poly Ltd IPO?

Here are the steps to apply for Ajay Poly Ltd. IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.