Forge Auto International Limited is launching its IPO, aiming to raise ₹31.10 crores through a fresh issue of 28.8 lakh shares. The IPO subscription period opens on September 26, 2024, and closes on September 30, 2024. The price band is set between ₹102 and ₹108 per share, with the minimum lot size being 1,200 shares.
Retail investors will need to invest a minimum of ₹1,29,600, while high-net-worth individuals (HNIs) must invest in at least two lots, amounting to ₹2,59,200. The allotment date for the IPO is expected to be October 1, 2024, and the shares will list on the NSE SME exchange on October 4, 2024.
Hem Securities Limited is the lead manager, and Bigshare Services Pvt Ltd is the registrar for the issue. Forge Auto International manufactures complex, safety-critical, forged, and precision-machined components for the auto industry, as well as non-auto sectors like agriculture and railways.
Industry Outlook:
- By 2025, India is expected to sell 4 million electric vehicles (EVs) annually, reaching 10 million by 2030, with the market projected to hit US$ 206 billion. This growing demand for EV components will create significant opportunities for Forge Auto International Limited.
- With India's push to reduce dependence on imported auto components, domestic manufacturers are likely to experience increased demand. The Indian auto component industry, which grew 32.8% to ₹5.6 lakh crore in FY23, is expected to become the third-largest globally by 2025.
Forge Auto International IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- To raise funds to meet the company's working capital requirements, ensuring smooth operations.
- A portion of the proceeds will be used to repay certain borrowings, reducing the company's debt and improving its financial stability.
- The remaining funds will be allocated towards general corporate purposes.
About Forge Auto International Limited
Forge Auto International Limited is an engineering company specialising in forging and manufacturing complex, safety-critical, forged, and precision-machined components. The company caters to both the automotive and non-automotive sectors, supplying parts such as big rings, small rings, gear blanks, ball studs, and axle assemblies. Its products serve a wide range of industries, including automobiles, tractors, railways, and agricultural equipment.
The company’s revenue from machined and forged products grew from ₹10,951.99 lakh in 2021 to ₹18,011.72 lakhs in 2024, reflecting a CAGR of 18.04%. The company continues to focus on increasing value addition through high-intensity machining, resulting in improved EBITDA margins of 7.62% in 2024.
With a manufacturing capacity of 20,000 MTs in forging and 25 lakh units annually in machining, Forge Auto International Limited is equipped with advanced machinery, including CNCs, VMCs, and hydraulic surface grinders. The company has expanded its product range to include hydraulic components, castor wheels, and industrial goods. It exports to countries like France, Germany, Brazil, and the United States, establishing a strong domestic and international presence.
Peer Details
The following are the listed peers considered by Forge Auto International Limited:
- Balu Forge Industries Limited
- MM Forging Limited
- Happy Forging Limited
- Samrat Forgings Limited
How to Check the Allotment Status of the Forge Auto International Limited IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Forge Auto International IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Forge Auto International IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Forge Auto International IPO
- Registered office: Village Mangarh, KoharaMachhiwara Road, Ludhiana, Punjab, India, 141001
- Phone: +91- 8999999195
- E-mail: sm@aint.in
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 18,011.72 | 17,664.85 |
| Profit After Tax (PAT) (in ₹ lakh) | 668.88 | 496.29 |
| Current Ratio (x) | 1.04 | 0.95 |
| Net Worth (in ₹ lakh) | 2,080.88 | 1,660.36 |
| EBITDA (in ₹ lakh) | 1,371.77 | 1,128.55 |
| Return on Equity (%) | 35.76 | 32.78 |
| Return on Capital Employed (RoCE) (%) | 17.60 | 21.30 |
| Earnings Per Share (in ₹) | 10.21 | 7.58 |
Know before investing
Strengths
6Diversified product portfolio across automotive, industrial, and agricultural sectors.
Long-standing relationships with key customers and suppliers enhance growth.
Experienced management team drives strategy and business expansion opportunities.
Strong financial performance with revenue and profit growth at impressive rates.
Focus on maintaining stringent quality standards ensures customer satisfaction.
Expansion plans include increasing capacity and adding advanced product offerings.
Risks
6Dependency on a few customers may lead to significant revenue fluctuations.
Lack of binding agreements with customers may impact sales stability.
Dependency on key suppliers for raw materials poses supply chain risks.
Increased raw material costs could negatively affect business operations.
Failure to repay loans may damage financial health and future borrowings.
Adverse conditions in related industries may impact Forge Auto’s business.
