Ajwa Projects Limited is preparing to launch its initial public offering on the BSE SME platform, offering investors an opportunity to participate in an established industrial services and infrastructure execution enterprise. According to the company’s red herring prospectus, the fixed-price issue is scheduled to open for subscription on 28 October 2026 and will close on 30 October 2026. The total issue size stands at INR 38.05 crore, comprising a fresh issuance of equity shares alongside an offer for sale by existing promoters and shareholders.
Headquartered in Surat, Gujarat, the company operates across the complete lifecycle of heavy engineering and infrastructure projects. Its core service offerings span structural and equipment fabrication, industrial piping, equipment erection, pressure vessel manufacturing, prefabricated structures, civil construction, and routine industrial maintenance. Ajwa Projects fabricates heavy industrial equipment—including boilers, heat exchangers, storage tanks, and ducts—catering to heavy industries such as oil and gas, refineries, power generation, steel manufacturing, chemicals, and core infrastructure.
Core Business Operations and Infrastructure Capabilities
The company executes its manufacturing and fabrication mandates through its dedicated workshop facilities in Surat, alongside site-based operations at client locations across India. Its civil construction and erection footprint extends into multiple states, including Gujarat, Maharashtra, Haryana, Rajasthan, and Odisha. Ajwa Projects has participated in several landmark national and regional infrastructure initiatives, contributing fabrication and execution work toward projects like the Chenab Rail Bridge, the Mumbai Trans Harbour Link, and the Sardar Sarovar Dam.
As of 5 October 2026, the enterprise reported an unexecuted order backlog valued at INR 42.43 crore spread across more than 26 active projects, providing near-term revenue visibility. To support its operations, the company maintained a workforce of 557 employees as of 30 June 2026. The business is promoted by Mr. Mohammad Khurshid Alam Khan, Mrs. Zarinabegum Khurshid Alam Khan, and Mr. Riyaz Rafiq Padela.
Ajwa Projects IPO Issue Structure and Timetable
The public issue is structured as a fixed-price offering priced at INR 203 per equity share with a face value of INR 10 each. The aggregate offering of 18,74,400 equity shares is divided into a fresh issue of 15,00,000 shares raising INR 30.45 crore and an offer for sale of 3,74,400 shares amounting to INR 7.60 crore. Retail investors are allocated 50% of the net issue.
| IPO Parameter | Value |
|---|---|
| IPO Opening Date | 28 October 2026 |
| IPO Closing Date | 30 October 2026 |
| Issue Price | INR 203 per share |
| Total Issue Size | INR 38.05 crore (18,74,400 shares) |
| Fresh Issue | INR 30.45 crore (15,00,000 shares) |
| Offer for Sale | INR 7.60 crore (3,74,400 shares) |
| Lot Size | 600 shares (Minimum investment: INR 1,21,800) |
| Allotment Finalisation | 2 November 2026 |
| Listing Date | 4 November 2026 on BSE SME |
Objects of the Issue and Net Proceeds Utilisation
Ajwa Projects intends to deploy the net proceeds collected from the fresh issue portion toward targeted capital expansion, debt reduction, and operational liquidity enhancement. The planned allocation of funds includes:
- Capital expenditure for acquiring new machinery, equipment, and transport vehicles amounting to INR 8.10 crore.
- Partial or full repayment and prepayment of existing bank and institutional borrowings totaling INR 9.35 crore.
- Augmenting incremental working capital requirements set at INR 4.00 crore.
- General corporate purposes accounting for the remaining INR 4.43 crore.
Financial Performance Overview
The company has demonstrated steady top-line expansion and margin improvement across recent fiscal periods, as reflected in its audited financial statements filed in the red herring prospectus.
| Financial Metric (INR Cr.) | FY 2024 | FY 2025 | FY 2026 | Q1 FY 2027 |
|---|---|---|---|---|
| Revenue from Operations | 34.27 | 36.73 | 48.42 | 12.41 |
| Total Expenses | 30.27 | 31.46 | 41.11 | 10.34 |
| Net Profit (PAT) | 2.95 | 3.28 | 5.42 | 1.56 |
| Net Profit Margin (%) | 8.60% | 8.94% | 11.20% | 12.55% |
Market Analysis and Business Evaluation
Market Sentiment and Industry Position
The industrial services and infrastructure execution sector benefits from robust domestic capital expenditure in core sectors including power, steel, and urban transit. Ajwa Projects operates in a fragmented competitive environment alongside established engineering contractors. Based on reported data, its scale of operations is smaller than major listed peers like Atmastco Limited, which reported a revenue of INR 292.62 crore, while remaining comparable to Samay Project Services Limited at INR 50.16 crore. However, the company maintains strong return ratios that distinguish its operational efficiency within the SME segment.
Financial and Valuation Assessment
Analysis of the financial figures indicates steady earnings acceleration. Revenue grew from INR 34.27 crore in FY 2024 to INR 48.42 crore in FY 2026, while net profit expanded from INR 2.95 crore to INR 5.42 crore over the same timeframe. The company’s earnings per share (EPS) stood at INR 13.56 for FY 2026 pre-issue, resulting in a P/E ratio of 14.97, which adjusts to 20.58 post-issue based on the dilution impact. Return on net worth (RONW) remained robust at 36.15% in FY 2026, supported by a return on capital employed (ROCE) of 34.75%. The debt-to-equity ratio improved from 1.22 in FY 2024 to 0.71 in FY 2026, indicating progressive balance-sheet de-leveraging which will be further aided by the proposed debt repayment from IPO proceeds.
| Valuation & Return Metric | FY 2024 | FY 2025 | FY 2026 | Analysis |
|---|---|---|---|---|
| Earnings Per Share (EPS) | INR 7.57 | INR 8.37 | INR 13.56 | Demonstrates consistent earnings expansion over the review period. |
| Return on Net Worth (RONW) | 39.68% | 30.99% | 36.15% | Indicates strong capital efficiency in generating returns for shareholders. |
| Debt-to-Equity Ratio | 1.22 | 0.65 | 0.71 | Shows moderate leverage reduction, to be strengthened by debt servicing from IPO proceeds. |
| EBITDA Margin | 16.57% | 17.45% | 18.66% | Reflects improving operational profitability and cost management. |
Key Takeaways
- Ajwa Projects operates an industrial services and heavy fabrication business with an order book of INR 42.43 crore as of 5 October 2026.
- The fixed-price IPO aims to raise INR 38.05 crore at an issue price of INR 203 per share.
- The subscription window spans from 28 October 2026 to 30 October 2026, with listing anticipated on 4 November 2026.
- Net proceeds will primarily fund capital equipment purchases, debt repayment of INR 9.35 crore, and working capital requirements.
- Financial performance shows revenue growth to INR 48.42 crore and net profit of INR 5.42 crore in FY 2026 alongside a high RONW of 36.15%.
Frequently Asked Questions
The IPO opens on 28 October 2026 and closes on 30 October 2026.
The issue price is set at a fixed price of INR 203 per share.
The total IPO size is INR 38.05 crore, consisting of a fresh issue worth INR 30.45 crore and an offer for sale worth INR 7.60 crore.
The minimum lot size is 600 shares, requiring an investment of INR 1,21,800.
The shares will be listed on the BSE SME platform.
The listing is scheduled for 4 November 2026.
The company proposes to allocate INR 9.35 crore towards the repayment or prepayment of bank and financial institution borrowings.
KFin Technologies Limited is the registrar for the issue.
