Introduction:
Aaron Industries Limited, a manufacturer of designer elevator cabinets and automatic elevator doors, had a strong foundation with over 60 years of experience in the related industry. However, their business was largely traditional, limiting their scalability. Despite their expertise in engineering and product quality, they lacked the financial strategy to build a large and lasting company. This is where beIPOready.com (M/s Jainam Capital Advisors Pvt Ltd) stepped in.
The Challenge:
When we first engaged with Aaron Industries, they were generating less than Rs. 9.00 crore in sales, with a PAT of under Rs. 80.00 lacs. The company operated from a single factory in Udhana with a workforce of less than 100 employees. Their ambition to scale was strong, but they faced critical financial roadblocks: Banks were not that supportive to extend further credit.
- Dependence on external suppliers – Difficulty in sourcing stainless steel sheets.
- Lack of strategic financial planning – Unaware of how to leverage capital markets for growth.
- Talent acquisition constraints – Struggled to attract experienced professionals.
Their vision was bold: to build a company that would last 500 years. However, they needed the right financial framework to turn this vision into reality.
The Solution:
We guided Aaron Industries through the entire IPO journey, ensuring:
- Strategic financial planning – Educated the promoters on wealth creation for all the stakeholders and long-term financial structuring.
- IPO Execution – In August 2018, they raised Rs. 4.90 crore, diluting only 26.5% equity via an NSE listing at Rs. 38 per share.
- Investor attraction – Helped structure the offer to attract the right kind of shareholders.
- Post-listing strategy – Provided ongoing guidance on leveraging public market capital efficiently.
The Impact:
Fast forward five years, Aaron Industries has achieved remarkable growth:
Stock Performance & Wealth Creation
- Issued two bonus share allotments (1:10 and later 10:11).
- Investors who initially bought 3,000 shares now own 6,300 shares.
- Stock price surged from Rs. 38 (IPO price) to Rs. 360 today. More than 20 times returns in about 5 years.
- Employees became millionaires, and shareholders were significantly rewarded.
- Now a regular dividend-paying company.
Business Expansion
- Set up a new factory, enabling backward integration by polishing stainless steel sheets in-house.
- Launched an advanced design printing facility for stainless steel sheet.
- Became an industry leader in designer elevator cabinets.
- Improved supplier relations – Can now import raw materials in bulk.
- Bank borrowings grew from Rs. 6 crore to Rs. 40 crore, with banks actively offering new credit facilities.
Follow-on Capital Raise & Investment
- Raised Rs. 12 crore via preferential allotment, diluting only 4% equity.
- Expanded factory with an additional 1,25,000 sq. ft. facility.
- Installed a SALVAGNINI S4 P4 automated production line – the most advanced technology for manufacturing elevator cabinets.
Talent Acquisition & Market Reach
- Hired a top industry professional for business development.
- Expanded dealership network and established warehouses in key locations.
- Strengthened brand presence in the elevator market.
Financial Growth & Sustainability
- Revenue grew from Rs. 9 crore to over Rs. 75 crore.
- PAT jumped from Rs. 90 lacs to Rs. 5 crore.
- The company’s net profit has now surpassed the amount raised through the IPO.
Conclusion:
Aaron Industries’ journey proves that a well-executed IPO is not just about raising funds—it’s about unlocking exponential growth and sustainability. Their listing enabled them to scale operations, strengthen financial credibility, and build an enduring enterprise. As they commission their state-of-the-art SALVAGNINI plant, they believe their real growth journey has just begun.
This transformation would not have been possible without their decision to go public—a decision we at beIPOready.com helped them take with confidence.
Want to explore how an IPO can transform your business? Contact beIPOready.com today.