Ajwa Projects Ltd. IPO: Price, Dates, Issue Details, Financials and Risks

Ajwa Projects Ltd. is launching a ₹38.05 crore small and medium enterprise (SME) initial public offering (IPO) at a fixed price of ₹203 per share. The issue opens on 28 October 2026 and closes on 30 October 2026, with listing scheduled for 4 November 2026. The offer comprises a fresh issue of ₹30.45 crore and an offer for sale (OFS) of ₹7.60 crore. Fresh-issue proceeds will go to the company, while OFS proceeds will go to the selling shareholders.

Ajwa Projects business and operating model

Surat-based Ajwa Projects is an industrial services and construction company. It provides fabrication, piping, erection, pressure-equipment installation, prefabricated structures, maintenance, blasting and painting, and civil works. The company undertakes workshop-based fabrication as well as on-site project execution.

Its customer base spans industrial and infrastructure sectors including oil and gas, refineries, steel, power, cement, bridges, metro rail and rail infrastructure. The scope of services covers work at different stages of an industrial project, including fabrication, installation and maintenance requirements.

Ajwa Projects operates entirely in the domestic market, with no export revenue indicated. Revenue is heavily concentrated in Gujarat. Its project-based model can result in uneven operating cash flows, while project schedules and collections remain relevant to the timing of financial performance.

The company has reported a balance order book of ₹42.43 crore across more than 26 projects. An order book represents work assigned by customers, although conversion into revenue remains dependent on execution of the underlying contracts.

Ajwa Projects was incorporated as Ajwa Projects Private Limited in 2011. It converted into a public limited company, Ajwa Projects Limited, in 2025. BSE granted in-principle approval for the proposed SME listing of its equity shares on 31 December 2025.

Financial trajectory through FY2026

Ajwa Projects reported increases in total revenue and profit after tax (PAT) over FY2024, FY2025 and FY2026. Revenue rose from ₹34.38 crore in FY2024 to ₹36.87 crore in FY2025 and ₹48.56 crore in FY2026. PAT was ₹2.95 crore in FY2024, ₹3.28 crore in FY2025 and ₹5.42 crore in FY2026.

Reported PAT margin moved from 8.57% in FY2024 to 8.90% in FY2025 and 11.17% in FY2026. Total assets increased from ₹25.00 crore in FY2024 to ₹25.57 crore in FY2025, before reaching ₹36.37 crore in FY2026. The reported figures set out the company’s financial progression over these periods without establishing the reasons for the changes.

For a project-execution company, the relationship between order-book conversion, revenue recognition, working-capital requirements and customer collections is relevant. Future reported performance may also be affected by the pace of project execution, tender conditions, project mix and the availability of equipment and labour.

Issue structure and proposed use of proceeds

The Ajwa Projects IPO combines a ₹30.45 crore fresh issue with a ₹7.60 crore OFS. The fresh issue is intended to raise funds for the company’s stated objectives. The OFS represents a sale of shares by existing shareholders and does not add to the company’s operating capital.

The company proposes to deploy ₹8.10 crore towards capital expenditure for equipment and transport vehicles or assets. It has proposed ₹9.35 crore for repayment or prepayment, in full or in part, of borrowings from banks and financial institutions. Other stated uses include ₹4.00 crore for working-capital requirements and ₹4.43 crore for general corporate purposes.

These are proposed uses of funds and not completed expenditure. The company has stated that repayment of borrowings is intended to lower finance costs and strengthen its balance sheet for larger project bidding. Capital expenditure, working capital and debt repayment are therefore central to the use-of-proceeds plan.

The IPO lot size is 600 shares. At the fixed issue price of ₹203, the minimum application amount is ₹1,21,800. Subscription has not opened as of 27 October 2026; consequently, the recorded zero bids at that point do not represent a measure of investor demand.

Valuation and key performance indicators

At the issue price of ₹203 per share, Ajwa Projects has a stated pre-IPO price-to-earnings (P/E) ratio of 14.97 times, based on earnings per share (EPS) of ₹13.56. The reported price-to-book ratio is 4.21 times. These metrics provide reference points between the issue price, reported earnings and book value.

The company reported return on equity (ROE) of 8.42%, return on capital employed (ROCE) of 7.56% and return on net worth (RoNW) of 8.42%. Its reported earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 19.71%, while the reported PAT margin was 12.55%. Debt-to-equity was reported at 0.72 times.

These indicators can be considered alongside the proposed repayment or prepayment of borrowings, capital expenditure plan and working-capital needs. Comparisons with other issuers can vary based on differences in customer concentration, contract mix, project duration, capital requirements and financial reporting periods.

Unofficial grey market premium (GMP) observations were ₹10 on 26 October 2026, ₹10 in an early observation on 27 October, and ₹25 in a later observation on 27 October, each against the ₹203 issue price. GMP is an unofficial market indicator, can change, and is not a forecast of the listing price or investment return.

Key risks for Ajwa Projects

Customer concentration is a material factor. The top five customers accounted for 85.40% of revenue in the quarter ended June 2026. Lower orders, loss of business or payment delays from significant customers could affect revenue, profitability and cash flows.

The company may depend on client-nominated or limited suppliers for certain requirements. Delays in material availability or higher input costs can affect project schedules and margins. Ajwa Projects also faces competition from organised, regional and international contractors, while tender-based pricing can affect contract economics.

Its operations involve safety, quality and execution requirements at industrial sites. Delays, defects or safety incidents may result in additional costs, disputes or operational disruption. Legal proceedings involving the company and its promoters could require management attention and lead to expenses or penalties.

Demand for the company’s services is linked to industrial and infrastructure project activity. Changes in activity across oil and gas, power, steel, cement, metro rail and rail infrastructure can affect contract availability. Geographic concentration in Gujarat adds exposure to conditions in that market.

Monitoring points after the issue opens

Subscription across retail individual investors, non-institutional investors and qualified institutional buyers will be monitored after bidding opens on 28 October 2026. The issue reserves 35% for retail investors, 15% for non-institutional investors and 50% for qualified institutional buyers.

Order-book execution and conversion of assigned projects into reported revenue will remain key operating indicators. The reported balance order book and the number of active projects provide context for this assessment.

Revenue dependence on major customers will remain relevant, given the top-five customer contribution of 85.40% in the quarter ended June 2026. Changes in order flow, collections or customer concentration can affect the business.

Deployment of fresh-issue proceeds towards equipment and transport assets, borrowings and working capital will be relevant to the company’s stated plans. Changes in borrowings, finance costs, working-capital requirements and operating cash-flow patterns will also remain pertinent after listing.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (27 Oct 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.