Aggcon Equipments Files ₹332 Crore IPO DRHP; Promoters to Offload 94 Lakh Shares
New Delhi, July 10, 2025 — Aggcon Equipments International Limited, one of India’s leading infrastructure equipment rental companies, has taken a significant step towards its public debut by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) is aimed at raising ₹3,320.37 million through a combination of a fresh issue and an offer for sale.IPO Structure: Fresh Capital and Promoter Exit
The public offering consists of a fresh issue of equity shares aggregating up to ₹3,320.37 million and an Offer for Sale (OFS) of up to 9.4 million equity shares by the promoters, Jitender Aggarwal and Renu Aggarwal.| Component | Equity Shares / Amount |
|---|---|
| Fresh Issue | Up to ₹3,320.37 million |
| Offer for Sale | 9,400,000 equity shares of ₹1 each |
| Total Offer Size | Up to [●] equity shares, aggregating up to ₹[●] million |
Offer for Sale: Promoter Exit Details
| Promoter Selling Shareholder | Shares Offered | Weighted Avg. Cost of Acquisition (₹) |
|---|---|---|
| Jitender Aggarwal | 5,400,000 | ₹0.02 |
| Renu Aggarwal | 4,000,000 | ₹0.02 |
Use of Fresh Issue Proceeds
Aggcon Equipments plans to deploy the net proceeds from the fresh issue to strengthen its balance sheet, enhance operational capacity, and support future growth. The utilisation is as follows:| Purpose | Estimated Amount (₹ million) |
|---|---|
| Repayment/prepayment of borrowings | ₹1,680.03 |
| Capital expenditure for equipment procurement | ₹840.35 |
| General corporate purposes | [To be updated] |
| Total | ₹3,320.37 million |
Financial Performance Highlights
According to the Restated Consolidated Financial Statements included in the DRHP, Aggcon has delivered strong operational and financial growth over the last three fiscal years. The company’s revenue grew at a CAGR of 21.56% between FY23 and FY25, underpinned by rising demand for leased infrastructure machinery in sectors such as roads, railways, metro, irrigation, and power.Key Financial Metrics (₹ in millions)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations | ₹1,640.22 | ₹1,372.86 | ₹1,110.06 |
| EBITDA Margin (%) | 61.32% | Not disclosed | Not disclosed |
| Profit After Tax (PAT) | ₹307.15 | ₹226.44 | ₹279.24 |
| Net Worth | ₹1,396.16 | ₹1,087.99 | ₹861.08 |
| EPS (Basic & Diluted) | ₹3.40 | ₹2.51 | ₹3.09 |
| Total Borrowings | ₹3,815.78 | ₹2,659.15 | ₹1,724.00 |
Promoter Holding and Lock-in Period
As of the DRHP filing date, promoters collectively held 99.81% of the company’s paid-up equity share capital.Post-IPO, at least 20% of the fully diluted equity capital will be locked in as Minimum Promoters’ Contribution (MPC) for three years in compliance with Regulation 16(1)(a) of the SEBI ICDR Regulations. The remaining pre-IPO holdings will be locked in for one year, excluding shares offered through OFS.
| Promoter Name | Pre-Offer Holding | Post-Offer Holding* |
|---|---|---|
| Jitender Aggarwal | 68.81% | [●] |
| Renu Aggarwal | 31.00% | [●] |
Company Overview
Aggcon Equipments International Limited, incorporated in 2003 and headquartered in New Delhi, is engaged in leasing a diversified fleet of construction and infrastructure equipment, including soil compactors, cranes, excavators, concrete pumps, and boom lifts. As of March 31, 2025, the company owned 337 equipment units and operated across 27 states and 5 union territories.The company primarily follows a B2B rental model, serving EPC contractors and infrastructure developers for projects in roads, railways, metro, and industrial sectors.
Strategic Outlook
- The company expects strong demand from upcoming projects under the National Infrastructure Pipeline (NIP), Gati Shakti, and Smart Cities initiatives.
- Aggcon plans to invest in newer-generation equipment, expand its footprint into underserved Tier 2 and Tier 3 cities, and de-leverage its balance sheet to improve return metrics.
Risk and Regulatory Disclosures
As per the DRHP, the company has disclosed outstanding litigation involving its promoters, including a past SEBI penalty of ₹0.20 million imposed in 2020 for violating certain trading norms. However, the company asserts that the promoters have cleared all dues and no litigation is currently pending.There are also contingent liabilities of ₹206.09 million as of FY25, largely on account of corporate guarantees extended to subsidiaries.
Issue Managers and Listing Plan
- Book Running Lead Manager (BRLM): Motilal Oswal Investment Advisors Ltd
- Registrar to the Offer: MUFG Intime India Pvt Ltd (formerly Link Intime)
- Proposed Listing: NSE and BSE
ESOP Allocation
The company has instituted an Employee Stock Option Plan (ESOP 2025) with an option pool of 4,516,750 shares, to incentivize and retain key talent.About Aggcon Equipments International Limited:
Aggcon Equipments is a full-service infrastructure equipment rental company that has grown steadily over two decades, offering end-to-end equipment rental and associated services. It is registered as a public limited company and is in the process of listing its equity shares on the Indian bourses.
Disclaimer: The offer is subject to SEBI’s final approval and market conditions. Investors should read the Red Herring Prospectus carefully before investing.
