Aggcon Equipments Files DRHP for IPO

Mumbai, 10 July 2025: Aggcon Equipments International Limited, a well-established infrastructure equipment rental company, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) aggregating up to ₹3,320.37 million, along with an offer for sale of up to 9.4 million equity shares by promoter selling shareholders. The IPO is aimed at funding expansion and strengthening the company’s financial position.

IPO Proceeds Aimed at Reducing Debt and Expanding Operations

• The IPO comprises a fresh issue of equity shares worth up to ₹3,320.37 million.
• Proceeds from the fresh issue will be utilised for:
  • Repayment and prepayment of borrowings amounting to ₹1,680.03 million.
  • Capital expenditure of ₹840.35 million for the purchase of equipment.
  • Allocation towards general corporate purposes (exact figure to be updated in final offer).

Promoters Jitender and Renu Aggarwal to Offload 94 Lakh Shares

• The offer for sale includes 9.4 million equity shares of face value ₹1 each.
• Jitender Aggarwal will sell 5.4 million shares, and Renu Aggarwal will sell 4 million shares.
• Both promoters acquired their shares at a cost of ₹0.02 per share, as certified by M/s. Pankaj N Mittal & Associates.
• The offer for sale is structured to facilitate partial promoter exit and improve liquidity.

Consistent Financial Growth Strengthens IPO Timing

• Revenue from operations grew to ₹1,640.22 million in FY25 from ₹1,110.06 million in FY23.
• Profit after tax (PAT) stood at ₹307.15 million in FY25, compared to ₹226.44 million in FY24 and ₹279.24 million in FY23.
• EBITDA margin in FY25 stood at an impressive 61.32%.
• Net worth rose to ₹1,396.16 million in FY25 from ₹861.08 million in FY23.
• Earnings per share (EPS) for FY25 was ₹3.40, up from ₹2.51 in FY24.

Extensive Nationwide Presence and Sector-Focused Business

Founded in 2003, Aggcon Equipments International Limited is a public limited company headquartered in New Delhi with its corporate office in Faridabad. The company specialises in leasing heavy equipment to key infrastructure sectors such as roads, metros, irrigation, and power. As of March 31, 2025, it operates a fleet of 337 equipment units and maintains a strong national presence across 27 states and 5 union territories. Backed by a revenue CAGR of 21.56% from FY23 to FY25 and solid financial performance, the IPO is expected to support Aggcon’s next phase of growth and expansion.

Listing Plans and Lead Management

• The company proposes to list its equity shares on both BSE and NSE.
• Motilal Oswal Investment Advisors Ltd has been appointed as the Book Running Lead Manager.
• MUFG Intime India Pvt Ltd will act as the registrar to the issue.

Promoter Holdings and Lock-in Requirement

• Promoters currently hold 99.81% of the company’s equity.
• In accordance with SEBI ICDR Regulations, a minimum promoter contribution of 20% will be locked in for three years post listing.
• Post-IPO shareholding details will be provided upon completion of allotment.

REF: https://nsearchives.nseindia.com/corporate/Registration_10072025142627_AggconDRHP.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations