Upcoming IPO: Kay Jay Forgings Files DRHP with SEBI to Raise Funds for Expansion

Ludhiana-based Kay Jay Forgings has initiated its public listing process by filing draft papers with the market regulator.  

The company is looking to raise capital to support expansion plans and strengthen its financial position. 

IPO Structure and Fund Utilisation 

The proposed public issue consists of a fresh issue of shares worth up to ₹300 crore along with an offer for sale of up to ₹60 crore by existing shareholders.  

The OFS includes promoter entities and individuals such as Gopal Krishan Kothari, Amit Kothari, Madhu Kothari and GK Kothari & Sons. 

From the proceeds of the fresh issue, ₹118.8 crore is planned to be allocated towards setting up new manufacturing capabilities, including forging and machining facilities, along with a solar power plant. 

Another ₹90.51 crore will be used to repay or prepay certain borrowings, while the remaining amount is earmarked for general corporate purposes. 

Bigshare Services has been appointed as the registrar for the issue, while PL Capital Markets will act as the sole book-running lead manager. 

Business Profile and Market Position 

Kay Jay Forgings operates as a B2B precision engineering company, manufacturing machined components primarily for original equipment manufacturers in the automotive sector.  

Over time, the company has diversified beyond automotive applications into segments such as farm equipment, mining machinery and consumer appliances. 

Crankshafts have been a core product since inception, particularly in the two-wheeler segment. The company has gradually expanded its product offerings to include components for three-wheelers, passenger vehicles, commercial vehicles and electric vehicles. 

As of FY25, it holds an estimated market share of around 36% in supplying crankshafts and assemblies to OEMs in India’s two-wheeler segment. 

The company has established long-term relationships with leading OEMs including TVS Motor Company, Honda Motorcycle & Scooter India and Mahindra & Mahindra. Its manufacturing network comprises 6 facilities located across Ludhiana in Punjab and Hosur in Tamil Nadu. 

Financial Performance Overview 

For the 6 months ended September 30, 2025, the company reported revenue of ₹466 crore and a profit after tax of ₹21.35 crore.  

In FY25, revenue from operations stood at ₹750.46 crore, reflecting an 11.6% increase over ₹672.31 crore in the previous year. 

Earnings before interest, tax, depreciation and amortisation rose to ₹71.49 crore, up 10.5% from ₹64.71 crore. Profit after tax for the year increased to ₹29 crore compared to ₹24.12 crore in FY24. 

Read More: Upcoming IPO: Rediff.com Files Draft Papers Via Confidential Route! 

Conclusion 

With its IPO plans, Kay Jay Forgings aims to strengthen its manufacturing capabilities and financial structure while leveraging its established presence in the automotive component supply chain. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

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