Ajwa Projects Ltd. IPO

Ajwa Projects 

• Ajwa Projects is coming out with an initial public offering (IPO) of 18,74,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 203 per equity share.
• The issue will open on October 28, 2026 and will close on October 30, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 20.30 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Wealth Mine Networks.
• Compliance Officer for the issue is Jatin Mansukhbhai Vaghasiya.

Profile of the company

Ajwa Projects is engaged in a diversified portfolio of industrial services that span fabrication, piping, erection, pressure equipment, prefabricated structures, maintenance & mechanical services, and civil construction works. Its role begins where it undertakes the core execution and manufacturing activities that convert approved plans into functional industrial assets. Through these activities, the company plays a critical role in creating and sustaining industrial and infrastructure facilities across sectors.

Fabrication forms a central part of its business and constitutes one of the most important areas of its operations. It is engaged in the machining, welding, and assembling of raw materials such as steel and other structural components into finished parts and sections as per client specifications. Its fabrication scope is broad and covers multiple categories of work. In structural fabrication, it manufactures technological frameworks, industrial buildings, girders, heavy modules, platforms, and crane girders that are critical for plant construction and infrastructure projects. In equipment fabrication, its activities include pressure vessels, boilers, heat exchangers, tanks, chimneys, ducts, ladles, and blast furnace components, which are widely used in process industries such as steel, power, oil and gas, and refineries. It also fabricates specialised components such as dish ends, crowns, petals, and customised parts, including diesel engine components for railway applications that require a high degree of precision and strict compliance with industry standards. As fabrication work forms the base for subsequent erection and installation, this area of its operations plays a pivotal role in ensuring the overall readiness, reliability, and quality of the industrial assets delivered by the company. 

It also provides erection services, which constitute an important area of its operations and one of the most critical stages in the industrial project lifecycle. These services cover the on-site installation, alignment, and integration of fabricated structures, equipment, and piping systems, all executed in accordance with client-approved designs and specifications. Erection requires handling and positioning of heavy structures, assembling of large equipment modules, and connecting auxiliary systems, often within complex and high-risk industrial environments. As the final step linking fabrication to operational readiness, this work demands strict adherence to safety norms, precise execution, and careful coordination with other site activities. Through these services, the company enables the transition of fabricated components into stable, functional, and compliant industrial assets, thereby playing a vital role in the completion and commissioning of projects across sectors such as oil & gas, refineries, power plants, steel plants, bridges, and large infrastructure works. Erection is not only about placing components but about ensuring stability, safety, and operational readiness. Any gap at this stage can delay or disrupt an entire project, making it one of the most sensitive and high-responsibility activities in the lifecycle of industrial facilities.

Proceed is being used for:

• Capital expenditure requirements towards acquisition of equipment, transport vehicle/assets.
• Funding towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions.
• Funding working capital requirement.
• General corporate purposes.

Industry Overview

The India structural steel fabrication market is influenced by the growth of the construction and infrastructure sectors in the country. Structural steel fabrication is an essential process in building construction, bridge construction, and industrial projects. As India witnesses rapid urbanization and increased investments in infrastructure development, the demand for structural steel fabrication has surged. Structural steel offers numerous advantages, including high strength-to-weight ratio, design flexibility, and ease of construction, making it a preferred choice for modern construction projects. The need for efficient and cost-effective construction solutions has further driven the adoption of structural steel fabrication in India.

The fabrication market was valued at around $21.8 billion in 2024 and is projected to reach $32.6 billion by 2031, growing at a CAGR of 5.9% during the forecast period. The market is witnessing sustained growth due to rising demand for precision manufacturing, advanced metal structures, and increased adoption of automation in industrial sectors. Sectors such as automotive, aerospace, construction, and energy are contributing significantly to the need for fabricated metal parts and assemblies. 

The India metal fabrication market is driven by the growth of various end-use industries, including automotive, construction, aerospace, and consumer goods. Metal fabrication involves the cutting, bending, welding, and assembling of metal components to create finished products. As these industries witness continuous growth and technological advancements, the demand for metal fabrication services has increased. The need for customized and precision-engineered metal components has also propelled the market’s growth. Additionally, the expansion of manufacturing activities and the trend towards outsourcing metal fabrication services have contributed to the market`s expansion in India.

Pros and strengths

Comprehensive portfolio with sectoral diversity: It offers an integrated portfolio of services that includes fabrication, piping, erection, pressure equipment, prefabricated structures, maintenance & mechanical services, and civil construction works. This diversified mix enables it to participate across multiple phases of the industrial and infrastructure project lifecycle from foundations and structural works to installation, commissioning, and maintenance. Over the years, it has successfully executed assignments across industries such as oil & gas, refineries, petrochemicals, steel, power, cement, fertilizer, nuclear, bridges, metro rail, and bullet train infrastructure. This sectoral reach, combined with its service depth, enhances its ability to handle complex assignments and contribute to industries of strategic and national importance.

Flexible execution model (on-site and off-site): Its operations are adaptable, with works carried out either in its fabrication workshops under controlled conditions or directly at client sites, depending on project requirements. This dual capability enables it to handle a variety of assignments from prefabricated modules manufactured off-site to large-scale civil and erection works executed at project locations. 

Quality and safety framework: Quality and safety form an integral part of its operations, embedded into every stage of the project lifecycle. From procurement of raw materials to fabrication, erection, and final handover, its works are subject to systematic inspections and checks. Processes such as non-destructive testing (NDT), pressure testing, PSV calibration, and trial runs ensure that each output meets the required specifications and industry codes. To reinforce this approach, the company has implemented globally recognised systems and is certified under ISO 9001:2015 for Quality Management and ISO 45001:2018 for Occupational Health and Safety. These certifications reflect its structured way of working, where reliability, compliance, and workplace safety are prioritised as essential elements in every project it undertakes. 

Risks and concerns

Dependence on client-nominated suppliers and vendors: Its business involves execution-heavy activities such as fabrication, piping, erection, pressure equipment installation, prefabricated structures, and civil works, which require a consistent supply of steel, cement, welding consumables, machinery, and other construction inputs. In most projects, key raw materials such as steel and cement are either provided directly by clients or sourced from vendors nominated by them. In certain cases, it procures materials itself, subject to client approval. Instances where it independently identifies and finalises vendors are minimal. This reliance on client-specified vendors or a limited supplier base exposes it to concentration risk. Any delay in supply, inconsistency in quality, or failure by these suppliers to deliver within agreed timelines could affect its ability to complete projects on schedule. External factors such as price fluctuations, logistics constraints, labour unrest, or regulatory changes impacting its suppliers could also disrupt availability and increase procurement costs.

Substantial geographical concentration of revenue in Gujarat: A substantial share of its revenues is generated from the State of Gujarat, contributing 96.24%, 93.96%, 80.26%, and 67.91% of its total revenues for the period ended June 30, 2026, and the financial years ended March 31, 2026, 2025, and 2024, respectively. Within Gujarat, a significant concentration of its business comes from projects located in and around Surat district. Although it has also executed projects in states such as Maharashtra, Haryana, Rajasthan, Odisha, and Bihar, its dependence on Gujarat remains high. This geographical concentration exposes it to region-specific risks, including local economic slowdowns, political or regulatory changes, natural calamities, labour unrest, or infrastructure disruptions. Any adverse development in Gujarat could disproportionately impact its revenues, profitability, and financial condition.

Exposure to client credit and default risks: Its business model is execution-driven, with payments often linked to project milestones, certifications, or extended credit terms agreed with clients. This exposes it to counterparty credit risk in the form of delayed payments or potential defaults. Given the scale and duration of its contracts, even a single large delay or non-receipt of payment could strain its cash flows, disrupt its working capital cycle, and adversely affect profitability. Further, its receivables are concentrated in industrial and infrastructure sectors, which are themselves exposed to macroeconomic and sector-specific risks such as liquidity shortages, delays in government approvals, or funding constraints. These factors may cause clients to extend payment timelines, renegotiate terms, or in adverse situations, fail to meet their obligations. While it follows internal checks for creditworthiness and maintains active monitoring of outstanding receivables, such measures cannot fully eliminate risks. Although it has not faced material payment defaults in the past, there can be no assurance that all clients will continue to honour their commitments in a timely manner. Any delay or default in receivables in the future could materially impact its cash flows, financial condition, and results of operations. 

Outlook

Ajwa Projects is engaged in the business of Fabrication, Erection and Contract work along with manpower supply services & caters to a wide range of industries such as oil & gas, petrochemicals, refineries, power generation, steel, heavy metals, cement, nuclear power, bridges, metro rail, bullet train infrastructure, and other industrial and infrastructure projects. A core strength of its business is the seamless integration of fabrication and erection. By manufacturing structural frameworks, piping, equipment, and customised components, and then undertaking their on-site installation and alignment, it delivers end-to-end execution that ensures operational readiness of facilities. On the concern side, projects in its industry are typically awarded after a competitive bidding process and satisfaction of prescribed technical and financial pre-qualification criteria. While its past track record, execution capabilities, service quality, safety standards, and financial resources are important factors in securing orders, there is no assurance that it will continue to meet such criteria for future projects. Further, once bidders qualify technically, contracts are usually awarded primarily on the basis of price competitiveness. Preparing and submitting bids involve time and cost, which are not recoverable if orders are not secured.

The company is coming out with an IPO of 18,74,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 203 per equity share to mobilize Rs 38.05 crore. On performance front, its revenue from operations increased by 31.83% to Rs 4,842.38 lakh for FY 2026 from Rs 3,673.11 lakh for FY 2025. Profit after tax has increased by 65.17% from Rs 328.29 lakh for FY 2025 to Rs 542.24 lakh for FY 2026.

Meanwhile, it has established a presence across states such as Gujarat, Maharashtra, Haryana, Rajasthan, Odisha, Bihar, and Chhattisgarh through the execution of diverse industrial and infrastructure projects. Building on this base, it plans to extend its operations into underpenetrated regions, particularly the North-Eastern and Southern states of India. This strategic expansion will enable it to access new markets, diversify its revenue streams, and reinforce its long-term growth prospects. Going forward, a portion of the offer proceeds will be used towards repayment of existing loans. This will reduce its finance costs, improve its debt-equity position, and strengthen its balance sheet. A stronger financial profile will enhance its ability to bid competitively for larger projects and secure favourable terms from clients, suppliers, and financial institutions.