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AMIC Forging lists at a 90% premium at Rs 239 per share on the BSE and hits the upper circuit

06 December 20235 mins read by Angel One
The IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 289 times.
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AMIC Forging Limited, previously recognised as Kali Mata Forging Private Limited specialises in crafting forged components for diverse industries and debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 239.40 per share, reflecting an impressive 90% premium compared to the issue price of Rs 126 per share from its initial public offering price of Rs 126 per share.

At present, the stock is trading at Rs 251.35 per share on the BSE, having reached intraday highs and lows of Rs 251.35 and Rs 239.40, respectively. Adding to this, the stock has hit the upper circuit price limit of 5% following its market debut. The current market capitalization of the company stands at Rs 263.63 crore.

IPO Proceeds

The company intends to allocate the net proceeds from the issue for the following purposes: setting up a manufacturing facility, meeting working capital requirements, and addressing general corporate purposes.

Company profile

AMIC Forging Limited, previously recognized as Kali Mata Forging Private Limited specialises in crafting forged components for diverse industries. The company was incorporated in 2007.

The company produces precision machined items including Rounds, Shafts, Blanks, and comprehensive engineered spare parts such as Gear couplings, Hubs, Rounds, Flanges, and various engineering spares based on client specifications and international standards like AISI, BS, IS, DIN, etc. These cater to a wide array of industries including Heavy Engineering, Steel, Oil & Gas, Petrochemicals, Chemicals, Refineries, Thermal Power, Nuclear Power, Hydro Power, Cement, Sugar, and related sectors. The products primarily encompass carbon steel, alloy steel, stainless steel, Nickel, and Tools Alloys.

AMIC Forging operates manufacturing facilities featuring a forging unit equipped with a 6 M/ton capacity Electrohydraulic Hammer, complemented by a 1 M/ton capacity Pneumatic Hammer. Each hammer is supported by a Manipulator and is assisted by 3 Overhead Cranes and jib Cranes, along with 3 temperature-controlled oil-fired furnaces, accompanied by all essential accessories.

Subscription details

On December 01, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 289.05 times. The public issue received remarkable interest, with the retail category being subscribed 273.01 times, the QIB category achieving a subscription rate of 91.43 times, and the NII category reaching a subscription rate of 589.27 times.

The company attracted Rs 9.90 crore from various anchor investors by allocating 7.86 lakh equity shares at Rs 126 per share. The complete lock-in period for these anchor investors ends on April 9, 2024.

The IPO price range was set between Rs 121 and Rs 126, with a face value of Rs 10 per share and a lot size of 1000 shares. The total size of the company’s IPO was Rs 34.80 crore, and the final share issue price was fixed at Rs 126 each.

Financial Performance

Particulars FY22 (Rs Lakh) FY23 (Rs Lakh) Q1 FY24 (Rs Lakh)
Revenue 7138.92 11683.01 2979.32
Net Profit / (Loss) 86.59 980.01 359.94
Total Assets 3163.87 6107.89 6367.84
Net Worth 767.28 1983.75 2338.43
Total Borrowings 1071.32 385.17 287.37

Conclusion

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have already gained an impressive 90% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions.

Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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