Aaron Industries Limited

Overview

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 ₹9.00 crore in sales, with a PAT of under ₹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 very supportive in extending further credit, they were dependent on external suppliers and found it difficult to source stainless steel sheets, they lacked strategic financial planning and were unaware of how to leverage capital markets for growth, and they 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.

Our Approach

1.Strategic financial planning, educating the promoters on wealth creation for all stakeholders and long-term financial structuring.
2.IPO execution, in August 2018 raising ₹4.90 crore, diluting only 26.5% equity via an NSE listing at ₹38 per share.
3.Investor attraction, helping structure the offer to attract the right kind of shareholders.
4.Post-listing strategy, providing ongoing guidance on leveraging public market capital efficiently.

The Result

Five years on, Aaron Industries has been transformed. Two bonus share allotments (1:10, then 10:11) mean investors who originally bought 3,000 shares now hold 6,300, while the stock price has risen from ₹38 at IPO to ₹360 today, more than 20x in about five years, with the company now paying regular dividends. Business has scaled sharply: a new factory added backward integration for stainless steel polishing, an advanced design printing facility followed, and the company became an industry leader in designer elevator cabinets, with bank borrowings growing from ₹6 crore to ₹40 crore as lenders began offering credit proactively. A follow-on preferential allotment raised ₹12 crore for only 4% dilution, funding a further 1,25,000 sq. ft. facility and a SALVAGNINI S4 P4 automated production line, the most advanced technology available for manufacturing elevator cabinets. The company also hired senior business development talent, expanded its dealership network, and strengthened warehousing and brand presence. Revenue grew from ₹9 crore to over ₹75 crore, and PAT rose from ₹90 lacs to ₹5 crore, meaning the company's annual net profit now exceeds the total amount it raised through the IPO.

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Aaron Industries Limited

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