Metalic Technoforge IPO

The two-wheeler segment remained the largest contributor, recording 19.6 million units in FY25, supported by increasing demand from the expanding middle class.  

The industry is gradually shifting towards electric vehicles (EVs), although internal combustion engine (ICE) vehicles continue to dominate production. In 2024, India produced around 100,000 electric cars, 900,000 electric two-wheelers, 20 million ICE two-wheelers, and 5 million ICE passenger cars.  

India's auto component industry contributes 2.3% to the country's GDP and provides direct employment to over 1.5 million people. Its contribution is expected to increase to 5–7% of GDP by 2026.  

According to McKinsey, the industry is projected to reach US$200 billion by 2030, driven by cost competitiveness, a skilled workforce, and robust domestic demand.  

The sector recorded a turnover of ₹6.73 lakh crore (US$78.74 billion) in FY25, growing at a 14% CAGR between FY20 and FY25.  

Auto component exports stood at ₹1.96 lakh crore (US$22.9 billion) in FY25 and are expected to reach US$100 billion by 2030. North America accounted for 32% of exports, followed by Europe (29.5%) and Asia (26%).  

Major export products include engine components, drive transmission and steering systems, suspension systems, braking components, and body and chassis parts.  

India's automobile production continues to support demand for components. During April–September FY26, domestic sales reached 1.02 crore two-wheelers, 20.5 lakh passenger vehicles, 4.64 lakh commercial vehicles, and 3.94 lakh three-wheelers, while total vehicle production stood at 1.65 crore units.  

In FY25, OEM supplies contributed 54% of the industry's turnover, followed by exports (19%) and the aftermarket segment (10%).  

The Automotive Mission Plan 2047 aims to increase annual vehicle production to 50 million by 2030 and 200 million by 2047, with a focus on EVs, hydrogen, CNG, biogas, and other sustainable mobility solutions.  

The automobile sector attracted US$39.14 billion in cumulative FDI between April 2000 and June 2026, accounting for around 5% of India's total FDI inflows. 

₹30.81 crore will be used to fund capital expenditure for establishing Manufacturing Unit IV and upgrading the existing manufacturing facilities in Rajkot, Gujarat.  

₹6.72 crore will be allocated towards the full or partial repayment/prepayment of certain outstanding secured borrowings.  

The remaining proceeds will be used for general corporate purposes, including supporting the company's overall business operations and growth initiatives. 

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. 

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 Metalic Technoforge 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. 

The company has delivered healthy financial growth, with annualised revenue of ₹84.40 crore and a profit after tax (PAT) of ₹10.54 crore. It also reported an EBITDA margin of 22.65% and a Return on Equity (ROE) of 51.84%, reflecting strong operational efficiency.  

Its manufacturing facility in Rajkot has end-to-end capabilities, including tool and die manufacturing, forging, heat treatment, and precision machining, enabling better quality control and improved operating efficiencies.  

The company supplies products to a wide range of domestic and international OEMs across industries such as automotive, construction equipment, agricultural machinery, and general engineering, reducing dependence on a single sector.  

The promoter group has significant experience in the metal forging and precision engineering industry, supporting the company's growth and operational execution.  

A major portion of the IPO proceeds (₹30.81 crore) will be invested in establishing Manufacturing Unit IV and upgrading existing facilities in Rajkot, which is expected to enhance production capacity and meet increasing customer demand.  

The company plans to utilise ₹6.72 crore from the IPO proceeds to repay or prepay certain borrowings, which could improve its capital structure and reduce finance costs.  

Increased manufacturing capacity is expected to help the company secure larger domestic orders while expanding its presence in international OEM markets.  

Rising outsourcing by global OEMs, growing demand for precision-engineered components, and continued infrastructure and industrial development in India present long-term growth opportunities for the company. 

The company generates a significant share of its revenue from a limited number of customers without long-term supply agreements. Losing any major customer or a decline in their orders could adversely affect its revenue and profitability.  

Metalic Technoforge relies on a relatively small number of suppliers for raw materials. Any disruption in supply, increase in raw material prices, or procurement delays could impact production costs and operating margins.  

A considerable portion of the company's domestic business comes from customers located in Gujarat, Maharashtra, and Uttar Pradesh. Any regional economic slowdown or regulatory changes in these states may affect business performance.  

Although the company has reported strong recent growth, it has experienced negative cash flows in the past. Sustaining profitability will depend on the successful implementation of its expansion plans and effective working capital management.  

The company exports to countries such as Germany, Finland, and Italy, exposing it to foreign exchange fluctuations, geopolitical uncertainties, and global economic slowdowns.  

A significant portion of revenue is derived from products such as gears and transmission components. Any slowdown in the automotive, agricultural equipment, or industrial machinery sectors could negatively impact demand and sales.