IPO Watch: Aggcon Equipments International Targets Rs 3,320 Crore With Mixed Offering

Aggcon Equipments International Ltd has filed its draft red herring prospectus (DRHP) with SEBI, marking a key step toward its public listing. The IPO will combine a fresh issue of shares worth up to Rs 3,320 crore with an offer-for-sale (OFS) of 94 lakh shares by existing shareholders. The move aims to fund expansion, reduce debt, and provide liquidity to early investors.

Key Components of the IPO Structure

- Fresh issue proceeds will support equipment procurement, working capital, and new service hubs  
- The OFS allows promoters and early backers to partially exit, without affecting operational continuity  
- Filing of the DRHP confirms regulatory compliance and initiates the IPO approval process  
- Post-IPO, Aggcon’s paid-up capital will increase, potentially diluting existing ownership but strengthening its balance sheet  
- The company’s FY23 operating revenue ranged between Rs 75–100 crore, with EBITDA growth of 29 percent and net worth up 41 percent year-on-year  

Strategic Context and Market Position

- Aggcon is India’s largest supplier of construction equipment on hire, with over 200 completed projects and 65 ongoing assignments  
- The company recently contributed Rs 30 lakh to the National Defence Fund, reinforcing its corporate responsibility credentials  
- Active borrowings from Axis Bank, Bandhan Bank, and Kotak Mahindra total over Rs 10 crore  
- Expansion into power sector services and LT/HT cable commissioning is expected to drive future revenue  

Outlook

With its DRHP filed and IPO structure finalized, Aggcon is poised to scale operations and deepen its role in India’s infrastructure build-out—backed by institutional capital and a growing project pipeline.

Sources: SEBI Draft Filings, Aggcon Equipments official site, Economic Times Markets, Screener.in, Tofler, ZaubaCorp, The Company Check, Capital Market IPO Desk, Nirmal Bang IPO Tracker

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