Forge Auto International Limited IPO Overview

Forge Auto International IPO is set to launch as a book-built issue totaling ₹31.10 crores, featuring a fresh issue of 28.8 lakh shares. The subscription period opens on September 26, 2024, and closes on September 30, 2024, with the allotment expected to be finalized on October 1, 2024. Investors can anticipate listing on the NSE SME on October 4, 2024. The price band for the Forge Auto International IPO is fixed between ₹102 and ₹108 per share.

The minimum application lot size is 1,200 shares, requiring a minimum investment of ₹129,600 for retail investors. For high net-worth individuals (HNIs), the minimum investment for two lots (2,400 shares) amounts to ₹259,200. Hem Securities Limited serves as the book running lead manager, while Bigshare Services Pvt Ltd is the registrar for the issue, with Hem Finlease acting as the market maker.

Refer to Forge Auto International IPO RHP for detailed information.

Forge Auto International Limited IPO Important dates

Forge Auto International IPO opens on September 26, 2024, and closes on September 30, 2024.

IPO Open Date Thursday, September 26, 2024
IPO Close Date Monday, September 30, 2024
Basis of Allotment Tuesday, October 1, 2024
Initiation of Refunds Thursday, October 3, 2024
Credit of Shares to Demat Thursday, October 3, 2024
Listing Date Friday, October 4, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 30, 2024

Forge Auto International Limited Financial Performance

Forge Auto International Limited’s revenue increased by 2% and profit after tax (PAT) rose by 35% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 31 Mar 2024 (₹ Crore) 31 Mar 2023 (₹ Crore) 31 Mar 2022 (₹ Crore)
Assets 101.49 Crore 82.74 Crore 56.78 Crore
Revenue 181.57 Crore 177.64 Crore 134.00 Crore
Profit After Tax 6.69 Crore 4.96 Crore 2.64 Crore
Net Worth 20.21 Crore 16.60 Crore 13.68 Crore
Reserves and Surplus 12.77 Crore
Total Borrowing 40.46 Crore 31.83 Crore 26.20 Crore

Forge Auto International Limited IPO Key Performance Indicator

The market capitalization of Forge Auto International IPO is Rs 117.94 Cr. KPI as of March 31, 2024.

KPI Values
ROE 35.76%
ROCE 17.60%
Debt/Equity 1.94
RoNW 32.14%
P/BV 4.17
PAT Margin (%) 3.71
Pre IPO Post IPO
EPS (Rs)  8.32 6.13
P/E (x)  12.98 17.63

Forge Auto International Limited IPO Objectives

The Net Proceeds are proposed to be used in accordance with the details as set forth below:

  1. To meet Working Capital requirements
  2. Repayment of specific borrowing availed by the Company
  3. General Corporate Purpose

Forge Auto International Limited IPO Lot Size

Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 1200 ₹129,600
Retail (Max) 1 1200 ₹129,600
HNI (Min) 2 2,400 ₹259,200

Forge Auto International Limited IPO Details

IPO Date September 26, 2024 to September 30, 2024
Listing Date [October 4, 2024]
Face Value ₹10 per share
Price Band ₹102 to ₹108 per share
Lot Size 1200 Shares
Total Issue Size 2,880,000 shares
(aggregating up to ₹31.10 Cr)
Fresh Issue 2,880,000 shares
(aggregating up to ₹31.10 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 8,040,000
Share holding post issue 10,920,000
Market Maker portion 146,400 shares

Forge Auto International Limited Company Overview and Services

Incorporated in 2001, Forge Auto International Limited is a leading engineering company specializing in the forging and manufacturing of complex, safety-critical components for both the automotive and non-automotive sectors. The company produces precision-machined parts for a wide range of applications, including automobiles, tractors, railways, agricultural equipment, hydraulic parts, and striking tools. Serving both domestic and global original equipment manufacturers (OEMs), Forge Auto International has established a diverse customer base across various industries.

The company’s revenue from machined and forged products has seen impressive growth, increasing from ₹10,951.99 lakhs in Fiscal Year 2021 to ₹17,664.85 lakhs in Fiscal Year 2023, reflecting a robust compound annual growth rate (CAGR) of 27%. This growth underscores the company’s strategic focus on enhancing its product offerings. Key products include short and long forks, flange yokes, ball studs, gear blanks, and stub axle assemblies, which are vital components in commercial vehicles, railway bogies, and agricultural equipment.

Forge Auto International is committed to maintaining high industry standards and has obtained several certifications, including ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, OHSAS 18001:2007 for occupational health and safety, and IATF 16949:2016 for automotive components. Additionally, the company has received the ZED GOLD certification from the Government of India, signifying its commitment to sustainability through its Zero Effect and Zero Defect manufacturing practices.

One of the company’s competitive strengths is its manufacturing facility, which boasts an impressive installed capacity of 20,000 metric tons for forging and 2.5 million units for machining. Long-standing relationships with customers are built on a foundation of quality assurance, timely delivery, prompt payments, and adaptability to client needs. As of March 31, 2024, Forge Auto International has a dedicated in-house sales and marketing team of 14 employees and employs a total of 366 permanent staff across various departments, ensuring efficient operations and customer satisfaction.

Forge Auto International Limited IPO SWOT Analysis

Strengths:

  1. Robust Product Offering: Forge Auto International specializes in manufacturing high-quality automotive components, which positions it well within the expanding automotive market.
  2. Established Brand Reputation: The company has built a strong reputation for reliability and innovation, fostering trust among customers and stakeholders.
  3. Strategic Partnerships: Collaborations with leading automotive manufacturers enhance Forge Auto’s market reach and provide access to new technologies.
  4. Strong Financial Performance: Consistent revenue growth and profitability demonstrate the company’s sound financial health, attracting potential investors.
  5. Skilled Workforce: The company boasts a talented team of engineers and technicians, ensuring high standards in production and innovation.

Weaknesses:

  1. Dependence on Automotive Sector: Forge Auto’s heavy reliance on the automotive industry makes it vulnerable to market fluctuations and economic downturns.
  2. Limited Diversification: The focus on a narrow product range may restrict the company’s ability to explore new revenue streams.
  3. Initial Public Offering (IPO) Risks: As a new public entity, Forge Auto may face challenges related to investor expectations and market volatility.

Opportunities:

  1. Growing Automotive Market: The increasing demand for electric vehicles (EVs) presents an opportunity for Forge Auto to expand its product offerings in this segment.
  2. Global Expansion: The company can explore international markets to diversify its customer base and reduce dependence on domestic sales.
  3. Technological Advancements: Investing in research and development can lead to innovative product offerings, enhancing the company’s competitive edge.
  4. Sustainability Trends: Emphasizing sustainable manufacturing practices can attract environmentally conscious consumers and investors.

Threats:

  1. Intense Competition: The automotive component manufacturing industry is highly competitive, posing a threat to market share and profit margins.
  2. Economic Downturns: Global economic fluctuations may adversely affect consumer spending and automotive sales, impacting Forge Auto’s performance.
  3. Regulatory Changes: Changes in environmental regulations and standards could lead to increased production costs and operational challenges.
  4. Supply Chain Disruptions: Dependence on suppliers for raw materials can expose Forge Auto to risks related to supply chain disruptions and price volatility.

Forge Auto International Limited IPO GMP Details

Forge Auto International  SME IPO last GMP is ₹25, last updated Sep 25th 2024. With the price band of 108.00, Forge Auto International SME IPO’s estimated listing price is ₹133 (cap price + today’s GMP).The expected percentage gain/loss per share is 23.15%.

Stay with us to know the daily price trend of Forge Auto International SME IPO GMP with expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
30-09-2024 Close 108.00 ₹25  22800 ₹133 (23.15%) 30-Sep-2024
29-09-2024 108.00 ₹25  22800 ₹133 (23.15%) 29-Sep-2024
28-09-2024 108.00 ₹25  22800 ₹133 (23.15%) 28-Sep-2024
27-09-2024 108.00 ₹25  22800 ₹133 (23.15%) 27-Sep-2024
26-09-2024 Open 108.00 ₹36   32800 ₹144 (33.33%) 26-Sep-2024
25-09-2024 108.00 ₹30   27400 ₹138 (27.78%) 25-Sep-2024
24-09-2024 108.00 ₹0  — ₹108 (0%) 24-Sep-2024
23-09-2024 108.00 ₹0  — ₹108 (0%) 23-Sep-2024
22-09-2024 108.00 ₹0  — ₹108 (0%) 22-Sep-2024
21-09-2024 108.00 ₹0  — ₹108 (0%) 21-Sep-2024
20-09-2024 108.00 ₹0  — ₹108 (0%) 20-Sep-2024

Forge Auto International Limited IPO subscription status 

Forge Auto International IPO subscribed 13.69 times. The public issue subscribed 20.03 times in the retail category, 7.40 times in QIB, and 7.26 times in the NII category by September 30, 2024.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)*
Anchor Investors 1 8,18,400 8,18,400 8.84
Market Maker 1 1,46,400 1,46,400 1.58
Qualified Institutions 7.40 5,47,200 40,50,000 43.74
Non-Institutional Buyers*** 7.26 4,10,400 29,79,600 32.18
Retail Investors 20.03 9,57,600 1,91,80,800 207.15
Total ** 13.69 19,15,200 2,62,10,400 283.07

Total Application : 15,984

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

  • ***: Market Maker portion is not included to NII/HNI.

Forge Auto International IPO Subscription Details (times)

Date QIB NII* Retail Total
Day 1
Sep 26, 2024		 6.55 2.35 4.47 4.61
Day 2
Sep 27, 2024		 7.40 5.87 15.79 11.27
Day 3
Sep 30, 2024		 7.40 7.26 20.03 13.69

Forge Auto International Limited IPO Allotment status 

The allotment status of Forge Auto International IPO is expected to be available on October 1, 2024.

Forge Auto International IPO allotment status is not available at this time. Forge Auto International IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Forge Auto International Limited IPO allotment status.

To check Forge Auto International IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Bigshare Services Pvt Ltd either by phone or email. Investors can call on +91-22-6263 8200 or send an email with all relevant details to ipo@bigshareonline.com.

Forge Auto International Limited Contact Details 

Forge Auto International Limited
Village Mangarh,
KoharaMachhiwara Road
Ludhiana,-, 141001
Phone: +91- 8999999195
Email: sm@aint.in
Website: http://www.failtd.com/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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