The Forge Auto International IPO is set to open on September 26, 2024, and will close on September 30, 2024. This Book Built Issue aims to raise approximately ₹31.10 crores, consisting of a fresh issue of ₹31.10 crores and an offer for sale of up to [.] equity shares, each with a face value of ₹10.
The price band for the Forge Auto International IPO is established at ₹102 to ₹108 per share. The allocation is as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI). The shares are expected to be listed on the NSE on October 4, 2024, with the allotment date set for October 1, 2024.
In its latest financial report, the company reported revenue of ₹177.64 crores for 2023, up from ₹134.00 crores in 2022. Profits increased to ₹4.96 crores in 2023, compared to ₹2.64 crores in 2022. Given these financial results, IPO investors are encouraged to consider this offering for long-term investment.
Forge Auto International IPO Objectives:
The net proceeds are intended to be utilized for the following purposes:
To meet working capital requirements
To repay specific borrowings incurred by the company
For general corporate purposes
Forge Auto International IPO Review (Should You Apply?)
Updates will be provided soon.
Forge Auto International IPO Dates & Price Band Details:
| IPO Open Date: | September 26, 2024 |
| IPO Close Date: | September 30, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹102 to ₹108 Per Share |
| Issue Size: | Approx ₹31.10 Crores |
| Fresh Issue: | Approx ₹31.10 Crores |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
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Forge Auto International IPO Lot Size:
The minimum market lot for the Forge Auto International IPO is set at 1,200 shares, with a total application amount of ₹129,600.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 1,200 | ₹ 1,29,600 |
| Retail Maximum | 1 | 1,200 | ₹ 1,29,600 |
| HNI Minimum | 2 | 2,400 | ₹ 2,59,200 |
Forge Auto International IPO Timeline:
The Forge Auto International IPO will open on September 26 and close on September 30. The allotment results will be finalized on October 1, and the IPO is expected to list on October 4.
| IPO Open Date: | September 26, 2024 |
| IPO Close Date: | September 30, 2024 |
| Basis of Allotment: | October 1, 2024 |
| Refunds: | October 3, 2024 |
| Credit to Demat Account: | October 3, 2024 |
| IPO Listing Date: | October 4, 2024 |
Promoters of Forge Auto International IPO
The company is led by promoters Mr. Parmod Gupta and Mr. Rajan Mittal.
About Forge Auto International IPO
Forge Auto International Limited is located in Village Mangarh, Kohara Machhiwara Road, Ludhiana, Punjab, India, 141001. The company specializes in manufacturing complex, safety-critical forged and precision-machined components, including large and small rings, substantial ball studs, gear blanks with broaching, and stub axle assembly flange yokes. Their products cater primarily to the automotive sector, encompassing automobiles, tractors, and railways, while also serving non-automotive sectors such as agriculture, hydraulic components, and striking tools.
Customer satisfaction is central to the company’s mission, driving the production of precision machined components tailored to specific client needs across various industries, including tractors, agriculture, railways, automobiles, and commercial vehicles. The company has experienced significant growth, with revenue from machined and forged products rising from ₹109.52 crore in Fiscal 2021 to ₹176.65 crore in Fiscal 2023, representing a compound annual growth rate (CAGR) of 27%. This growth highlights their dedication to enhancing product offerings.
With a strategic emphasis on delivering quality products and services, Forge Auto International is committed to developing customer-centric innovations and advanced process technologies. Their focus on client satisfaction has facilitated geographical expansion and diversification across various industry sectors. The company’s EBITDA margins have shown consistent improvement, recording figures of 7.01%, 6.28%, and 5.56% for Fiscal 2023, 2022, and 2021, respectively.
Forge Auto International IPO Financial Report
In 2023, the company reported revenue of ₹177.64 crores, compared to ₹134.00 crores in 2022. Profit for the same period rose to ₹4.96 crores, up from ₹2.64 crores in 2022.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
| 2021 | ₹ 109.75 | ₹ 107.52 | ₹ 1.61 | ₹ 53.07 |
| 2022 | ₹ 134.00 | ₹ 130.26 | ₹ 2.64 | ₹ 56.78 |
| 2023 | ₹ 177.64 | ₹ 170.71 | ₹ 4.96 | ₹ 82.74 |
| Dec-23 | ₹ 135.41 | ₹ 130.04 | ₹ 3.62 | ₹ 91.27 |
Forge Auto International IPO Valuation – FY2024
Check Forge Auto International IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| KPI | Values |
| ROE: | 32.78% |
| ROCE: | 24.82% |
| EBITDA Margin: | 7.01% |
| PAT Margin: | 2.79% |
| Debt to equity ratio: | 1.92 |
| Earning Per Share (EPS): | ₹12.41 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 29.89% |
| Net Asset Value (NAV): | ₹ 41.51 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Balu Forge Industries Ltd | 9.8 | 33.71 | 16.94 | 53.9 | 559.86 Cr. |
| MM Forging Limited | 55.84 | 21.65 | 16.92 | 326.87 | 1,547.12 Cr. |
| Happy Forging Limited | 26.78 | 45.47 | 15.07 | 171.17 | 1,358.24 Cr. |
| Samrat Forgings Ltd | 5.95 | 53.8 | 9.42 | 63.15 | 162.03 Cr. |
Forge Auto International IPO Registrar
- Bigshare Services Pvt Ltd
- Phone: +91-22-6263 8200
- Email: ipo@bigshareonline.com
- Website: https://ipo.bigshareonline.com/ipo_status.html
IPO Lead Managers aka Merchant Bankers
Hem Securities Limited
Company Address
- Forge Auto International IPO Limited
- Village Mangarh,
- KoharaMachhiwara Road
- Ludhiana,-, 141001
- Phone: +91- 8999999195
- Email: sm@aint.in
- Website: http://www.failtd.com/
Forge Auto International IPO FAQs
What is the Forge Auto International IPO?
The Forge Auto International IPO is an SME IPO aiming to raise ₹31.10 crores. The issue price is set between ₹102 and ₹108 per equity share, and it will be listed on the NSE.
When will the Forge Auto International IPO open for subscription?
The IPO will open for subscription on September 26, 2024, for Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and retail investors. It will close on September 30, 2024.
What is the investors’ allocation for the Forge Auto International IPO?
The allocation is as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for retail investors.
How can I apply for the Forge Auto International IPO?
You can apply for the Forge Auto International IPO online via ASBA through your bank account. Additionally, you can apply via UPI through your stockbroker or by filling out an offline form with your stockbroker.
What is the issue size of the Forge Auto International IPO?
The total issue size of the Forge Auto International IPO is ₹31.10 crores.