Ajwa Projects Limited is a Surat-based industrial services company working in the engineering and infrastructure sector. It does fabrication, erection, piping, pressure equipment, prefabricated structures, civil construction and maintenance for oil & gas, refineries, power, steel, cement and infrastructure projects.
The company is now bringing a fixed-price SME IPO to raise about ₹38.05 crore on BSE SME at ₹203 per share. The issue has a fresh issue of 15.00 lakh shares (₹30.45 crore) and an offer for sale of 3.74 lakh shares (₹7.60 crore) by the promoters. It opens on 28 October 2026, closes on 30 October 2026 and is tentatively set to list on 4 November 2026. The fresh money will mainly go to debt repayment, machinery purchases and working capital.
IPO Details
| Parameter | Details |
| IPO Type | Fixed Price – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 28 October 2026 |
| IPO Close Date | 30 October 2026 |
| Allotment Date | 2 November 2026 (Expected) |
| Refund Initiation | 3 November 2026 |
| Credit to Demat | 3 November 2026 |
| Listing Date | 4 November 2026 (Tentative) |
| Issue Price | ₹203 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Minimum Investment (Retail) | ₹2,43,600 (2 lots = 1,200 shares) |
| Minimum Investment (HNI) | ₹3,65,400 (3 lots = 1,800 shares) |
| Total Issue Size | 18,74,400 shares (₹38.05 crore) |
| Fresh Issue | 15,00,000 shares (₹30.45 crore) |
| Offer For Sale (OFS) | 3,74,400 shares (₹7.60 crore) |
| Pre-Issue Shares | 40,00,000 |
| Post-Issue Shares | 55,00,000 |
Issue Break-up
| Category | Shares | % of Total Issue |
| Market Maker (Prabhat Financial Services Ltd.) | 94,800 | 5.06% |
| NII / HNI | 8,90,400 | 47.50% |
| Retail (RII) | 8,89,200 | 47.44% |
The net offer to the public is 17,79,600 shares, split roughly 50:50 between NII and Retail. One tracker lists the quota as “QIB 50%, HNI 50%”. That looks like a data error for a fixed-price SME issue, so I used the exchange-style split above.
OFS / Selling Shareholders
| Selling Shareholder | Category | Shares Offered | Amount (₹ Cr) |
| Mohammad Khurshid Alam Khan | Promoter | 1,87,200 | 3.80 |
| Zarinabegum Khurshid Alam Khan | Promoter | 1,87,200 | 3.80 |
| Total | 3,74,400 | 7.60 |
The OFS proceeds go to the selling promoters, not to the company. It is a partial promoter exit of about 9.4% of pre-issue equity.
Objects of the Issue
| Object | Amount (₹ Cr) |
| Capex: acquisition of plant & machinery, transport vehicles/assets | 8.10 |
| Repayment / prepayment of borrowings | 9.35 |
| Working capital requirement | 4.00 |
| General corporate purposes | 4.43 |
| Total (net proceeds) | 25.88 |
The company expects to spend about ₹4.57 crore on issue expenses. This is why net proceeds of ₹25.88 crore are lower than the ₹30.45 crore fresh issue. Debt repayment is the largest single use of funds.
Lead Managers & Registrar
- Book Running Lead Manager: Wealth Mine Networks Ltd. (Jamnagar)
- Registrar to the Issue: Kfin Technologies Ltd.
- Market Maker: Prabhat Financial Services Ltd.
Promoters & Management
The promoters are Mohammad Khurshid Alam Khan, Zarinbegum Khurshid Alam Khan and Riyaz Rafiq Padela.
| Particular | Pre-IPO | Post-IPO |
| Promoter & Promoter Group | 98.90% | 65.12% |
| Public | 1.10% | 34.88% |
Company Details
Background: Incorporated in March 2011 as a private limited company and converted to a public limited company in June 2025. Registered office is in Surat, Gujarat. As of 30 June 2026 it had 658 employees on its payroll, and it hires contract labour as needed.
Business Model: Ajwa Projects does the core execution and manufacturing work that turns approved plans into working industrial assets.
Key Services
- Fabrication: structural items such as industrial frameworks, girders, platforms and crane girders. Also pressure vessels, boilers, tanks, ducts and precision parts such as dish ends and diesel engine components for railways.
- Erection: on-site installation and integration of heavy structures, equipment and piping.
- Piping: fabrication and installation of process and utility pipelines for chemicals, gases, steam and fluids.
- Pressure Equipment: fabrication, assembly and erection of pressure vessels.
- Civil Construction: foundations, industrial buildings, silos and tanks.
- Prefabricated Structures: modular and portable buildings.
- Maintenance & Mechanical Services: PSV calibration, NDT testing, blasting & painting, plant shutdown support.
Sectors Served: oil & gas, petrochemicals, refineries, power, steel, heavy metals, cement, nuclear power, bridges, metro rail, bullet train infrastructure.
Financial Snapshot
Restated figures, ₹ crore. The review source reports them on a consolidated basis. Latest period: Q1 FY27 (quarter ended 30 June 2026).
| Period | Total Income | PAT | Total Assets |
| FY24 (Mar-24) | 34.38 | 2.95 | 25.00 |
| FY25 (Mar-25) | 36.87 | 3.28 | 25.57 |
| FY26 (Mar-26) | 48.56 | 5.42 | 36.37 |
| Q1 FY27 (Jun-26) | 12.44 | 1.56 | 41.97 |
FY23 for reference, from the draft-stage data: total income ₹28.80 crore, PAT ₹0.61 crore.
Analysis
- Revenue rose about 32% and PAT about 65% in FY26, after a much slower FY25 (revenue +7%).
- Margins widened every period, with EBITDA margin going from 16.5% to 19.7% and PAT margin from 8.6% to 12.6%.
- Q1 FY27 revenue annualises to about ₹50 crore, only slightly above FY26. The FY26 jump may not repeat at the same pace.
- Borrowings rose from ₹7.96 crore to ₹13.84 crore over FY25–Q1 FY27 even as profits grew. The reviewer also flags rising trade receivables.
- The order book of ₹19.82 crore is small against annual revenue of about ₹48 crore, so forward visibility is limited.
Company Strengths
- Integrated service model: fabrication, erection, piping, civil and maintenance under one roof, which allows the company to handle a project end to end.
- Strong recent growth: FY26 revenue up about 32% and PAT up about 65%, with margins improving every period.
- High returns on capital: FY26 ROCE of about 35% and RoNW of about 36%.
- Diverse sector exposure: serves refineries, power, steel, cement, nuclear and infrastructure.
- Flexible execution: on-site and off-site delivery.
- Debt reduction from the IPO: ₹9.35 crore of proceeds will repay borrowings.
- Fresh capital for equipment: ₹8.10 crore goes to machinery and vehicles for capacity.
Key Risks & Challenges
- Pricing looks stretched. Dilip Davda’s review calls the issue aggressively priced and suggests investors may ignore it as high risk/low return.
- Possible pre-IPO window dressing. The same review says the sharp rise in FY26 and Q1 numbers before the IPO looks designed to support a high valuation.
- Working capital strain. Trade receivables are rising. Borrowings have also increased to ₹13.84 crore.
- Small order book. ₹19.82 crore against about ₹48 crore of annual revenue gives limited visibility.
- Highly competitive, fragmented segment with many local fabrication and erection players, which limits pricing power.
- Weak lead manager record. Of the last 7 listings by Wealth Mine Networks, 5 opened at a discount and 1 at par.
- SME liquidity risk. Post-IPO equity is only ₹5.50 crore, so trading volumes may stay thin. The minimum application is ₹2.44 lakh.
- Partial promoter exit. The OFS is ₹7.60 crore, though promoters keep about 65% afterwards.
- Project-based, labour-heavy business with execution, safety and contract-timing risks.
Disclaimer
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
