Ajwa Projects Ltd is launching a ₹38.05 crore fixed-price SME IPO on the BSE SME platform from 28 October to 30 October 2026 at ₹203 per share. The Ajwa Projects IPO comprises a fresh issue of ₹30.45 crore and an offer for sale (OFS) of ₹7.60 crore. The company operates in industrial fabrication, erection, piping, civil construction and maintenance services, with exposure to sectors such as oil and gas, power, steel, cement and infrastructure.
The Ajwa Projects IPO Analysis 2026 highlights a business that has reported improving revenue, profitability and margins over FY24 to FY26. However, rising borrowings, working-capital requirements, a relatively modest order book and a valuation premium over the listed peers identified in its offer document warrant careful assessment. At ₹203 per share, the IPO is aimed at investors who understand the liquidity and volatility risks associated with SME stocks.
Table of Contents
- Ajwa Projects IPO Details
- Ajwa Projects IPO Important Dates
- IPO Issue Structure and Investor Reservation
- About Ajwa Projects Ltd
- Ajwa Projects Business Model and Services
- Business Strengths and Growth Drivers
- Ajwa Projects Financial Performance
- Profitability, Margins and Return Ratios
- Debt, Receivables and Working Capital Risks
- Ajwa Projects IPO Objectives
- Ajwa Projects IPO Valuation
- Promoter Holding and Shareholding Dilution
- Ajwa Projects IPO GMP
- Key Risks of Ajwa Projects IPO
- Who Should Consider the Ajwa Projects IPO?
- Ajwa Projects IPO Review and Final Verdict
The Ajwa Projects IPO is a fixed-price public issue comprising fresh equity shares and an OFS by existing promoters. The issue price is ₹203 per share, and the minimum retail application requires an investment of ₹2,43,600.
The following table summarises the key Ajwa Projects IPO details for investors.
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Particulars
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Details
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Company
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Ajwa Projects Ltd
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Exchange
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BSE SME
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IPO type
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Fixed-price issue
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IPO opening date
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28 October 2026
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IPO closing date
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30 October 2026
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Issue price
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₹203 per share
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Face value
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₹10 per share
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Total issue size
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₹38.05 crore
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Total shares offered
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18,74,400
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Fresh issue
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₹30.45 crore, or 15,00,000 shares
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Offer for Sale
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₹7.60 crore, or 3,74,400 shares
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Lot size
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600 shares
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Minimum retail application
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1,200 shares, or 2 lots
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Minimum retail investment
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₹2,43,600
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Minimum HNI application
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1,800 shares, or 3 lots
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Minimum HNI investment
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₹3,65,400
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Market maker
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Prabhat Financial Services Ltd
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Lead manager
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Wealth Mine Networks Ltd
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Registrar
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KFin Technologies Ltd
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Tentative allotment date
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2 November 2026
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Tentative listing date
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4 November 2026
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The minimum investment is relatively high compared with many main-board IPO applications because of the SME issue's lot structure. Retail investors must apply for at least two lots, while the stated minimum HNI application is three lots.
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Get all the latest updates on the Ajwa Projects IPO, including issue details, pricing information, and subscription trends.
The Ajwa Projects IPO is scheduled to remain open for three days. Investors should track the application window, allotment process, demat credit and tentative listing date.
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IPO event
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Tentative date
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IPO opens
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28 October 2026
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IPO closes
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30 October 2026
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Basis of allotment
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2 November 2026
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Refund and UPI mandate release
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3 November 2026
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Shares credited to demat accounts
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3 November 2026
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BSE SME listing
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4 November 2026
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These dates are tentative and may be subject to official updates. The basis of allotment will determine the final allocation to applicants, while the listing date is when trading is expected to commence on the BSE SME platform.
The Ajwa Projects IPO comprises 18,74,400 shares, including shares reserved for the market maker. After excluding the market maker reservation, the net offer to the public is 17,79,600 shares.
The public portion is divided almost equally between retail individual investors and non-institutional investors.
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Investor category
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Shares or reservation
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Retail individual investors
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8,89,200 shares, or 49.97% of the net issue
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Non-institutional investors (NII/HNI)
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8,90,400 shares, or 50.03% of the net issue
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Market maker reservation
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94,800 shares, or 5.06% of the total issue
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The issue has no separate reservation for qualified institutional buyers (QIBs). This is seen in many SME IPOs, but the absence of a QIB allocation means investors will have limited information about institutional demand through this route.
The market maker reservation is intended to support trading activity under the applicable SME market-making framework. However, market making does not eliminate the risk of low liquidity or sharp share-price movements.
Ajwa Projects Ltd was incorporated in 2011 and is based in Surat, Gujarat. It provides industrial engineering and construction-related services, covering fabrication, erection, piping, pressure equipment, prefabricated structures, civil construction and maintenance.
The company undertakes work for industrial and infrastructure projects across several sectors, including:
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Oil and gas
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Petrochemicals and refineries
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Power generation, including nuclear power
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Steel and cement
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Bridges and industrial structures
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Metro rail and bullet-train infrastructure
Its operations combine workshop-based fabrication with on-site installation and construction activities. This allows Ajwa Projects to participate in multiple stages of an industrial project rather than focusing exclusively on a single service.
However, operating across several end markets does not automatically eliminate concentration risk. Revenue visibility still depends on the size and timing of project awards, customer relationships, execution capabilities and timely collection of payments.
Ajwa Projects earns revenue by executing industrial fabrication, installation, piping, construction and maintenance contracts. Its ability to coordinate several activities can help it serve clients requiring integrated project execution.
Industrial fabrication
The company manufactures structural and industrial components used in construction and engineering projects. Its fabrication portfolio includes:
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Structural frameworks and industrial buildings
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Girders, crane girders and platforms
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Heavy modules and prefabricated structures
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Pressure vessels, boilers and tanks
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Ducts and precision components
Fabrication work requires appropriate equipment, skilled labour, material management and quality control. Project profitability can be affected by input costs, delivery schedules and the terms agreed with customers.
Erection and installation
Ajwa Projects undertakes the on-site erection and installation of heavy structures, equipment and piping systems. This service complements fabrication because the company can participate in both the production and installation stages of a project.
An integrated execution model may improve coordination, but it also exposes the company to site-level delays, labour availability and project completion risks.
Industrial piping
The company fabricates and installs process and utility pipelines used to transport fluids, gases, steam and chemicals.
Such work serves industrial facilities, including refineries, petrochemical plants and power projects. Execution requires adherence to project specifications and relevant quality and safety requirements.
Civil construction
Ajwa Projects also undertakes civil construction activities, including:
These services broaden its project offering beyond fabrication and mechanical installation.
Industrial maintenance and testing
The company's maintenance-related activities include preventive maintenance, pressure safety valve (PSV) calibration, non-destructive testing (NDT), blasting and painting, and plant-shutdown support.
Maintenance services can provide opportunities beyond initial project construction. However, the available information does not establish how much recurring revenue these activities contribute to the company's total income.
Ajwa Projects has several characteristics that could support its business, although their long-term benefits depend on execution and financial discipline.
Integrated project execution capability
The company offers fabrication, erection, piping and civil construction services. This combination may help it meet multiple requirements for a project and coordinate work across different stages.
The potential benefit is stronger execution control and the ability to offer a broader service package. The corresponding risk is that delays or cost overruns in one stage may affect the wider project.
Exposure to multiple industries
Ajwa Projects serves sectors such as oil and gas, petrochemicals, power, steel, cement and infrastructure.
This spread reduces exclusive dependence on one industry. Nevertheless, the company may remain exposed to common risks such as slower industrial investment, delayed customer payments and competitive pricing.
Skilled workforce
The IPO-related disclosures report a workforce of more than 557 skilled and semi-skilled professionals. Another IPO review states that the company had 658 employees as of 30 June 2026.
These figures differ, and the available information does not reconcile their definitions or reporting dates. Investors should refer to the final offer document for the applicable workforce disclosure.
A skilled workforce is important for fabrication quality, site installation, maintenance and project delivery. At the same time, workforce utilisation, labour costs and the availability of specialised personnel can affect margins.
Revenue and profit growth
The company's financial performance improved between FY24 and FY26. Total income increased from ₹34.38 crore to ₹48.56 crore, while profit after tax rose from ₹2.95 crore to ₹5.42 crore.
This indicates improving reported profitability over the period. However, investors should assess whether the company can sustain this growth as borrowings and working-capital requirements increase.
Order book and future revenue visibility
Ajwa Projects reported an order book of ₹19.82 crore as of 30 September 2025.
Compared with FY26 total income of ₹48.56 crore, the disclosed order book is modest. It is equivalent to approximately 40.8% of FY26 total income, although an order book and annual revenue are different measures and should not be treated as directly interchangeable.
The key factors to track are fresh order wins, order execution, cancellations, project timelines and the conversion of orders into recognised revenue.
Ajwa Projects reported growth in total income, EBITDA and profit after tax between FY24 and FY26. The company's FY26 performance was particularly strong, with total income increasing by approximately 31.7% and PAT rising by 65.2% year-on-year.
The following figures are restated financial numbers reported in IPO trackers based on the offer documents. All amounts are in ₹ crore.
Q1 FY27 Financial Performance
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Financial metric
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Q1 FY27
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Total income
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12.44
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Profit after tax (PAT)
|
1.56
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EBITDA
|
2.45
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Net worth
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19.27
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Total borrowings
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13.84
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FY26 Financial Performance
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Financial metric
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FY26
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Total income
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48.56
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Profit after tax (PAT)
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5.42
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EBITDA
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9.03
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Net worth
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17.71
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Total borrowings
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12.52
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FY25 Financial Performance
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Financial metric
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FY25
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Total income
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36.87
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Profit after tax (PAT)
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3.28
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EBITDA
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6.41
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Net worth
|
12.29
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Total borrowings
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7.96
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FY24 Financial Performance
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Financial metric
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FY24
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Total income
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34.38
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Profit after tax (PAT)
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2.95
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EBITDA
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5.68
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Net worth
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8.90
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Total borrowings
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10.85
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Q1 FY27 represents the quarter ended 30 June 2026. Quarterly figures should not be directly compared with full-year figures without accounting for the different reporting periods.
Revenue growth accelerated in FY26
Ajwa Projects' total income increased from ₹34.38 crore in FY24 to ₹36.87 crore in FY25, before rising to ₹48.56 crore in FY26.
The year-on-year growth rate was approximately 7.2% in FY25 and 31.7% in FY26. This acceleration indicates stronger reported business activity in the latest completed financial year.
The key figures are:
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FY25 total income increased by ₹2.49 crore over FY24.
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FY26 total income increased by ₹11.69 crore over FY25.
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Q1 FY27 total income stood at ₹12.44 crore.
The first-quarter result provides an indication of the company's activity in FY27, but a single quarter is insufficient to establish whether FY26's growth rate will continue throughout the year.
Profit after tax increased faster than revenue
PAT increased from ₹2.95 crore in FY24 to ₹3.28 crore in FY25 and ₹5.42 crore in FY26.
The 65.2% year-on-year rise in FY26 PAT was substantially higher than the 31.7% growth in total income. This is consistent with the improvement in reported profit margins.
However, investors should not assess earnings growth in isolation. They should also examine whether the improvement is supported by sustainable project margins, efficient cost management and cash collections.
EBITDA growth indicates stronger operating profitability
EBITDA increased from ₹5.68 crore in FY24 to ₹6.41 crore in FY25 and ₹9.03 crore in FY26.
The FY26 increase suggests that operating earnings improved alongside revenue. Nevertheless, EBITDA does not account for interest expenses, depreciation, tax or working-capital movements. Since Ajwa Projects' borrowings increased in FY26, investors should also examine finance costs and cash flow when assessing the quality of its earnings.
Ajwa Projects reported improving PAT margins between FY24 and Q1 FY27. Its FY26 return ratios were also relatively strong, although the quarterly return figures were lower.
Ajwa Projects PAT Margin
| Period |
PAT Margin |
| Q1 FY27 |
12.55% |
| FY26 |
11.20% |
| FY25 |
8.94% |
| FY24 |
8.60% |
Ajwa Projects EBITDA Margin
| Period |
EBITDA Margin |
| Q1 FY27 |
19.71% |
| FY26 |
18.66% |
| FY25 |
Not specified |
| FY24 |
Not specified |
The PAT margin increased from 8.60% in FY24 to 11.20% in FY26, before reaching 12.55% in Q1 FY27. The EBITDA margin also improved to 19.71% in the first quarter of FY27 from 18.66% in FY26.
Higher margins mean the company reported more profit relative to its income. However, the quarterly figures should not be treated as guaranteed full-year margins because project execution, cost recognition and revenue timing can vary between quarters.
Return on equity and return on capital employed
Ajwa Projects reported the following return ratios:
Q1 FY27 Return Ratios
| Financial metric |
As of 30 June 2026 |
| Return on equity (ROE) |
8.42% |
| Return on capital employed (ROCE) |
7.56% |
FY26 Return Ratios
| Financial metric |
FY26 |
| Return on equity (ROE) |
36.15% |
| Return on capital employed (ROCE) |
34.75% |
FY26 ROE of 36.15% indicates strong reported profitability relative to shareholders' equity during the year. ROCE of 34.75% indicates a high reported return relative to capital employed.
The lower figures reported for the quarter ended June 2026 should be interpreted in the context of the reporting period and the methodology used to calculate the ratios. Annual and quarterly return ratios are not directly comparable without understanding their calculation basis.
For investors, the important question is whether Ajwa Projects can maintain healthy returns while funding business expansion, managing debt and converting reported profits into cash.
Rising borrowings are an important consideration in the Ajwa Projects IPO Analysis because the company needs working capital to execute industrial projects and collect payments from customers.
Total borrowings increased from ₹7.96 crore in FY25 to ₹12.52 crore in FY26 and further to ₹13.84 crore by 30 June 2026.
Borrowings and debt-to-equity ratio
Q1 FY27 Borrowings and Debt-to-Equity Ratio
| Financial metric |
As of 30 June 2026 |
| Total borrowings |
₹13.84 crore |
| Debt-to-equity ratio |
0.72 |
FY26 Borrowings and Debt-to-Equity Ratio
| Financial metric |
FY26 |
| Total borrowings |
₹12.52 crore |
| Debt-to-equity ratio |
0.71 |
FY25 Borrowings and Debt-to-Equity Ratio
| Financial metric |
FY25 |
| Total borrowings |
₹7.96 crore |
| Debt-to-equity ratio |
Not specified |
Borrowings increased by approximately 57.3% in FY26 compared with FY25. They rose by a further ₹1.32 crore during Q1 FY27.
The debt-to-equity ratio was 0.71 at the end of FY26 and 0.72 as of June 2026. This indicates that the company was using borrowings alongside shareholders' equity to fund its operations and assets.
Higher debt can increase interest costs and reduce financial flexibility, particularly if project execution slows or customer payments are delayed.
Rising trade receivables require attention
Independent IPO reviewer Dilip Davda has flagged rising trade receivables as a concern.
Trade receivables represent amounts owed by customers for goods or services already supplied. In project-based businesses, revenue may be recognised before the corresponding cash is collected. This can create a funding gap between executing a contract and receiving payment.
Investors should monitor:
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The growth in trade receivables relative to revenue.
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The ageing of outstanding customer payments.
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Whether overdue receivables are increasing.
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Operating cash flow relative to reported PAT.
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The company's reliance on borrowings to fund day-to-day operations.
The IPO allocates ₹4 crore towards working capital, reinforcing the importance of liquidity management for Ajwa Projects.
Ajwa Projects plans to use approximately ₹25.88 crore of net IPO proceeds for capital expenditure, debt repayment, working capital and general corporate purposes.
The proposed allocation is as follows.
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Use of IPO proceeds
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Amount
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Plant and machinery, transport vehicles and assets
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₹8.10 crore
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Repayment or prepayment of borrowings
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₹9.35 crore
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Working capital requirements
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₹4.00 crore
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General corporate purposes
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₹4.43 crore
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Total
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₹25.88 crore
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Capital expenditure of ₹8.10 crore
The company intends to invest in plant and machinery, transport vehicles and other assets. These investments could support its fabrication, installation and project-execution capabilities.
The benefit will depend on how effectively the additional assets are utilised and whether they help the company secure and execute more profitable contracts.
Debt repayment of ₹9.35 crore
The company has earmarked ₹9.35 crore for repayment or prepayment of borrowings. This is a significant part of the stated proceeds allocation.
If implemented as planned, the repayment could reduce outstanding debt and future interest obligations. However, the extent of the benefit will depend on the borrowings repaid, their interest rates and any additional debt taken on after the IPO.
Working capital of ₹4 crore
Working capital is required to fund operating expenses and bridge the time between executing projects and collecting customer payments.
The allocation may support day-to-day operations, but it also highlights the importance of receivables management and cash-flow discipline in Ajwa Projects' business model.
General corporate purposes of ₹4.43 crore
The company has allocated ₹4.43 crore towards general corporate purposes. This amount is not assigned to a single, specifically identified project in the stated allocation.
Overall, the proposed use of proceeds has two constructive elements: investment in productive assets and repayment of borrowings. Investors should nevertheless assess whether the planned debt reduction is sufficient relative to the company's ongoing working-capital requirements.
The Ajwa Projects IPO price is ₹203 per share, implying a post-issue market capitalisation of ₹111.65 crore. The valuation requires careful examination because the company's post-IPO earnings multiple is higher than the price-to-earnings multiples of the two listed peers identified in the offer document.
Valuation at ₹203 per share
|
Valuation metric
|
Pre-IPO
|
Post-IPO
|
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Earnings per share (EPS)
|
₹13.56
|
₹11.33
|
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Price-to-earnings ratio (P/E)
|
14.97x
|
17.92x
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Market capitalisation
|
₹81.20 crore
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₹111.65 crore
|
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Net asset value (NAV) per share
|
₹48.17
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₹90.40
|
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Price-to-book ratio (P/B)
|
4.21x
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2.25x
|
The post-IPO P/E of 17.92x is based on annualised Q1 FY27 earnings. Annualising a single quarter assumes that its earnings can be sustained across the year, which may not happen in a project-based business.
Using FY26 PAT of ₹5.42 crore and the post-issue equity base of 55 lakh shares produces an implied P/E of approximately 20.59x.
This distinction matters because the earnings multiple depends on the period used. The annualised quarterly figure gives a lower P/E than the multiple based on the latest completed financial year's profit.
Comparison with listed peers
The offer document identifies Atmastco and Samay Projects as listed peers. Their reported P/E multiples as of 23 October 2026 were 9.98x and 11.4x, respectively.
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Company
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Reported P/E
|
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Atmastco
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9.98x
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Samay Projects
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11.4x
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Ajwa Projects, based on annualised Q1 FY27 earnings
|
17.92x
|
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Ajwa Projects, based on FY26 PAT
|
Approximately 20.59x
|
Ajwa Projects is priced at a premium to both identified peers on these measures. The comparison is not perfectly like-for-like, as differences in business mix, growth, profitability, scale and capital structure can affect appropriate valuations.
Nevertheless, the premium means investors are paying a higher multiple for Ajwa Projects' reported earnings. The company would need to sustain profitability and demonstrate effective cash conversion and business growth to support that valuation over time.
Is the Ajwa Projects IPO price justified?
The valuation presents both an opportunity and a risk.
The positive case rests on FY26 revenue growth, higher PAT, improving margins and the planned use of IPO proceeds for capital expenditure and debt repayment.
The concerns are its premium valuation relative to the identified peers, increasing borrowings, rising receivables and the modest disclosed order book.
Consequently, the Ajwa Projects IPO valuation does not offer an obvious discount based on the supplied financial data. Investors need to decide whether the company's earnings growth and future execution prospects justify paying a higher multiple.
The promoter and promoter-group shareholding is expected to fall from 98.90% before the IPO to 65.12% after the issue. Public shareholding is expected to increase from 1.10% to 34.88%.
Pre-IPO
|
Shareholding category
|
Pre-IPO
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Promoters and promoter group
|
98.90%
|
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Public shareholders
|
1.10%
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Post-IPO
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Shareholding category
|
Post-IPO
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|
Promoters and promoter group
|
65.12%
|
|
Public shareholders
|
34.88%
|
The promoters will continue to hold a majority stake after the IPO. At the same time, the increase in public ownership will broaden the shareholder base.
Promoter offer for sale
Promoters Mohammad Khurshid Alam Khan and Zarinabegum Khurshid Alam Khan are each selling 1,87,200 shares through the OFS, raising approximately ₹3.80 crore each.
The OFS portion totals ₹7.60 crore. Unlike the fresh issue, OFS proceeds go to the selling shareholders rather than to the company.
The reported average acquisition costs of the three promoters are ₹0.50, ₹3.40 and ₹4.10 per share, compared with the IPO price of ₹203. The company also issued bonus shares in a 19:1 ratio in December 2024.
These historical acquisition costs should be interpreted in the context of the bonus issue and any relevant shareholding adjustments. The difference between historical acquisition costs and the IPO price is not, by itself, evidence of overvaluation. However, the OFS does allow existing shareholders to monetise part of their holdings at a price substantially above their reported historical costs.
As of 26 October 2026, available grey market premium trackers reported no meaningful GMP for the Ajwa Projects IPO, with one tracker reporting a GMP of ₹0.
The Ajwa Projects IPO GMP is an unofficial indicator of informal market sentiment before listing. It is not an exchange-verified measure of demand, and it does not guarantee the price at which shares will list.
A reported GMP of ₹0 indicates that the cited tracker was not showing a premium at that time. It should not be interpreted as a confirmed prediction that the shares will list at the issue price.
Investors should consider the following points:
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GMP data may differ across trackers and can change rapidly.
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Grey market transactions are unofficial and unregulated.
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A positive GMP does not guarantee listing gains.
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A zero or negative GMP does not independently establish the company's long-term value.
The Ajwa Projects IPO Review should therefore focus primarily on financial performance, valuation, debt, order-book visibility and business risks rather than speculative listing expectations.
The Ajwa Projects IPO carries several business, financial, valuation and market-related risks. Investors should assess these factors alongside the company's improving financial performance before deciding whether to apply.
1. SME liquidity and volatility
Ajwa Projects will list on the BSE SME platform, where trading liquidity and price movements can differ substantially from those of main-board companies.
The post-IPO equity capital is ₹5.50 crore, representing 55 lakh shares. The relatively small equity base and limited tradable supply can contribute to sharp price movements.
Investors may also face difficulty selling shares at their preferred price during periods of weak demand. Any future migration to the main board should not be assumed or treated as guaranteed.
2. Premium valuation relative to peers
The post-IPO P/E is 17.92x based on annualised Q1 FY27 earnings and approximately 20.59x based on FY26 PAT.
Both figures are higher than the reported P/E multiples of Atmastco and Samay Projects. This leaves less room for valuation disappointment if Ajwa Projects fails to sustain its earnings growth.
3. Increasing debt and working-capital requirements
Borrowings rose from ₹7.96 crore in FY25 to ₹12.52 crore in FY26 and ₹13.84 crore in June 2026.
The company plans to use ₹9.35 crore of IPO proceeds to repay or prepay borrowings. However, investors should track whether debt declines after the issue and whether operating cash flow improves.
4. Rising trade receivables
Rising receivables are a concern because delayed customer payments can create a gap between reported earnings and actual cash generation.
If the company cannot collect payments efficiently, it may need additional working capital or borrowings to continue executing projects.
5. Modest order book
The disclosed order book was ₹19.82 crore as of 30 September 2025, compared with FY26 total income of ₹48.56 crore.
A relatively small order book makes new contracts and timely project execution important for future revenue visibility. Investors should look for updated order-book disclosures and evidence that new orders are being converted into revenue.
6. Competitive and fragmented industry
Industrial fabrication, erection and civil construction are competitive businesses. Companies may face pricing pressure, cost overruns, project delays and challenges in securing new contracts.
Ajwa Projects' integrated service offering may help it compete, but the available data does not establish that it has a durable competitive advantage over larger or better-capitalised players.
7. No dividend history
Ajwa Projects has not paid dividends since incorporation. Investors should therefore not expect a demonstrated history of dividend income from the company.
Returns will depend on future share-price appreciation, which is uncertain and may be affected by earnings, valuation and SME market liquidity.
8. Merchant banker listing track record
Wealth Mine Networks Ltd is the lead manager for the issue. According to the supplied data, it handled eight mandates in the last two financial years. Of the seven previous listings cited, five opened at a discount, one opened at par and one opened at a premium of 2.57%.
This historical record is worth noting, but it does not determine the outcome of the Ajwa Projects IPO. Each company's valuation, investor demand and market conditions are different.
The suitability of the Ajwa Projects IPO depends on an investor's risk tolerance, liquidity needs, investment horizon and assessment of the company's valuation.
Investors who may consider applying
The issue may be worth evaluating for:
-
High-risk investors familiar with SME IPOs and their liquidity constraints.
-
Investors who can afford the minimum retail application of ₹2,43,600 without compromising emergency savings or other financial commitments.
-
Investors who believe the company can sustain its FY26 profitability, improve cash collections and secure larger orders.
-
Investors prepared to hold through potentially sharp price movements rather than rely on immediate listing gains.
Investors who may prefer to avoid the issue
The IPO may be unsuitable for:
-
Conservative investors seeking stable returns or regular dividend income.
-
Investors who cannot tolerate low liquidity or substantial share-price volatility.
-
Applicants relying mainly on GMP to estimate listing gains.
-
Investors looking for a clear valuation discount to comparable listed engineering and construction companies.
-
Investors who may need their application money or invested capital in the near term.
The minimum retail investment is significant. Investors should consider this commitment carefully rather than applying solely because the IPO is open or because of expectations about listing performance.
Planning to apply for the Ajwa Projects IPO? Apply online through Zerodha and submit your IPO application with ease.
The Ajwa Projects IPO presents a combination of improving financial performance and material investment risks. The company reported total income of ₹48.56 crore and PAT of ₹5.42 crore in FY26, representing year-on-year growth of approximately 31.7% and 65.2%, respectively. Its reported PAT and EBITDA margins also improved over the period.
The proposed use of IPO proceeds is another constructive factor. The company plans to allocate ₹9.35 crore towards debt repayment, ₹8.10 crore towards capital expenditure and ₹4 crore towards working capital.
However, the investment case is constrained by several concerns:
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The valuation is approximately 17.92x annualised Q1 FY27 earnings and 20.59x FY26 earnings.
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Borrowings increased to ₹13.84 crore by June 2026.
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Rising trade receivables raise questions about cash conversion.
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The disclosed ₹19.82 crore order book is modest relative to FY26 total income.
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SME liquidity, a small post-IPO equity base, and no dividend history add to the risk.
The absence of a meaningful grey market premium as of 26 October 2026 also provides little basis for relying on short-term listing expectations.
Overall assessment: Ajwa Projects IPO is a high-risk SME issue that requires selective evaluation rather than an assumption of listing gains. Its revenue and profit growth are encouraging, but the valuation premium, debt position, receivables, and limited order-book visibility need further scrutiny.
Cautious investors may want to wait for the listing and the first post-IPO quarterly results to get more clarity on cash flow, borrowings, order wins, and earnings sustainability. Investors experienced with SME issues may evaluate the IPO after reviewing final subscription figures and the latest disclosures, provided the minimum investment and potential losses fit their risk capacity.
Want to understand how Ajwa Projects compares with other upcoming and recently listed SME companies? Use the SME IPO dashboard to review issue prices, offer structures and subscription activity.
Frequently Asked Questions
1. What is the Ajwa Projects IPO price and issue size?
The Ajwa Projects IPO price is ₹203 per share, and the total issue size is ₹38.05 crore. It comprises a fresh issue of ₹30.45 crore and an offer for sale of ₹7.60 crore.
2. What is the Ajwa Projects IPO date and listing date?
The Ajwa Projects IPO opens on 28 October 2026 and closes on 30 October 2026. The tentative allotment date is 2 November 2026, and the expected BSE SME listing date is 4 November 2026.
3. What is the minimum investment in the Ajwa Projects IPO?
The minimum retail application is two lots of 600 shares each, or 1,200 shares. At ₹203 per share, the minimum retail investment is ₹2,43,600, excluding any applicable charges.
4. What is the Ajwa Projects IPO GMP today?
As of 26 October 2026, available grey market premium trackers showed no meaningful GMP, with one tracker reporting ₹0. GMP is unofficial and unregulated, so it should not be treated as a reliable prediction of listing gains.
5. Is the Ajwa Projects IPO worth applying for?
The Ajwa Projects IPO has reported revenue growth, higher profits and improving margins, but it also carries valuation, debt, receivables, order-book and SME liquidity risks. Its valuation is higher than the reported P/E multiples of the two peers identified in the offer document. Investors should assess these risks and their financial capacity before applying.