Forge Auto International Limited
Forge Auto International Limited(FORGEAUTO)
Total Shares
28,80,000
Issue Size
₹31.10 Cr
Price Band
₹102 – ₹108
Lot Size
1200 shares
Min. Investment
₹1,29,600
Max. Investment
₹1,29,600
Open Date
26 Sep, 2024
Close Date
30 Sep, 2024
Allotment
01 Oct, 2024
Listing
04 Oct, 2024
Max. Investment
₹1,29,600
Announced
26 Sep, 2024
Opening Date
26 Sep, 2024
Closing Date
30 Sep, 2024
Basis of Allotment
01 Oct, 2024
Initiation of Refunds
03 Oct, 2024
Credit of Shares
03 Oct, 2024
Listing Date
04 Oct, 2024
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About Forge Auto International Limited IPO
Incorporated in 2001, Forge Auto International Limited is an engineering company that forges and manufactures complex, safety-critical, forged, and precision-machined components for the auto industry (automobiles, tractors, railways) and non-auto sectors (agriculture parts, hydraulic parts, striking tools).
The company serves its customers, including domestic and global original equipment manufacturers (OEMs) engaged in manufacturing for both the automotive and non-automotive sectors.
Forge Auto International Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 35.8% increase in shares
Forge Auto International Limited IPO Financials Health
Forge Auto International Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,29,600 |
| Retail Maximum | 1 | 1200 | ₹1,29,600 |
| HNI Minimum | 2 | 2400 | ₹2,59,200 |
(All values in CR)
Forge Auto International Limited IPO Valuation
| Metric | Value |
|---|---|
| EPS Post IPO | 4.42 |
| EPS Pre IPO | 6.17 |
| P/E Post IPO | 24.42 |
| P/E Pre IPO | 17.5 |
(All values in CR)
Strength & Risk of Forge Auto International Limited IPO
1. Integrated manufacturing operations with diversified product portfolio.
2. Long-standing relationship.
3. Experienced Promoters and senior management team.
4. Track record of healthy financial performance.
1. We depend on a limited number of customers for our revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on our business, operations and could have impacted our financial strength.
2. We do not have agreements/commitment on part of our customers to purchase or place orders with us, also we do not have any price agreement with our customers. If our customers select some other vendors/competitors for their requirement, it may have adverse effect on our business.
3. We depend on a few suppliers for the supply of steel, our primary raw material. Further, we do not have definitive supply agreements with our suppliers for the supply of steel. If our suppliers fails to fulfil our requirement, it may have adverse effect on our business.
4. We have taken loans and any inability to comply with repayment and other covenants can adversely affect our business, reputation and financial condition.
5. Our business is dependent on the performance of certain other industries which we are serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact our business and financial condition.
6. Our production process require uninterrupted power and fuel supply and any disruption/shortage of power or fuel sources could affect our product quality or increase our production costs and adversely affect our business, and operations.
7. We have substantial working capital requirements and may require additional capital and financing in the future and our operations could be curtailed if we are unable to obtain the required additional capital and financing when needed.
8. Our company has been recently formed by conversion of the erstwhile Partnership firm into the company, thus we have limited operating history as a Company which may make it difficult for investors to evaluate our historical performance or future prospects.
9. Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our sales, profitability, cash flow and liquidity.
10. Failure to obtain or maintain pre-qualifications from customers or loss of our pre-qualified status from our existing customers could adversely impact our business.
Forge Auto International Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 8,18,400 | 8,18,400 | 8.84 |
| HNI | 58.91 | 4,10,400 | 2,41,76,400 | 261.11 |
| Market Maker | 1.00 | 1,46,400 | 1,46,400 | 1.58 |
| QIB | 20.13 | 5,47,200 | 1,10,13,600 | 118.95 |
| Retail | 61.95 | 9,57,600 | 5,93,28,000 | 640.74 |
| Total | 49.35 | 19,15,200 | 9,45,18,000 | 1 |
Forge Auto International Limited IPO GMP
Last updated 21 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 21 Sep, 2024 | 108 | ₹0 | -- | ₹108 (0.00%) | - | 21 Sep, 2024 |
| 23 Sep, 2024 | 108 | ₹0 | -- | ₹108 (0.00%) | - | 23 Sep, 2024 |
| 24 Sep, 2024 | 108 | ₹0 | -- | ₹108 (0.00%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 108 | ₹0▼ | -- | ₹108 (0.00%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 108 | ₹30▼ | 27400 | ₹138 (27.78%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 108 | ₹36▲ | 32800 | ₹144 (33.33%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 108 | ₹25▲ | 22800 | ₹133 (23.15%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 108 | ₹15 | 13700 | ₹123 (13.89%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 108 | ₹15 | 13700 | ₹123 (13.89%) | - | 03 Oct, 2024 |
| 04 Oct, 2024 | 108 | ₹15 | 13700 | ₹123 (13.89%) | - | 04 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Forge Auto International Limited IPO
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Find Forge Auto International Limited under the IPO section. Select it and enter your bid details — choose lot size and price (cut-off price recommended).
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Your funds will be blocked in your account until the IPO allotment process is completed.
Forge Auto International Limited IPO
Forge Auto International Limited is launching its Initial Public Offering (IPO) to raise capital for business expansion and general corporate purposes. Below is a summary and detailed analysis of the IPO, highlighting important points, pros, and cons for potential investors.
Forge Auto International Limited IPO
Forge Auto International Limited, a company specializing in manufacturing forged auto parts and components, is offering an IPO to raise funds for scaling operations and strengthening its balance sheet. The IPO consists of up to 28,80,000 equity shares.
Company Overview
Forge Auto International Limited, originally established as a partnership firm in 2001, was converted into a private limited company in April 2023. The company is involved in manufacturing and supplying auto components for various vehicles, catering primarily to the automotive industry. The firm has a long history of delivering high-quality products to its clients.
- Founded: 2001 (Converted to Private Limited in 2023)
- Industry: Auto Component Manufacturing
- Promoters: Rajan Mittal and Parmod Gupta?
Key IPO Details
- IPO Size: Up to 28,80,000 equity shares with a face value of Rs. 10 each
- Fresh Issue: 28,80,000 equity shares (no Offer for Sale component)
- Listing: The shares will be listed on NSE Emerge
- Use of Proceeds:
- Business Expansion: The company aims to scale its manufacturing capabilities and expand its product offerings.
- General Corporate Purposes: A portion of the funds will be used to support general business objectives.
- Working Capital: Funds will also be allocated to meet the company's working capital requirements?.
Pros of Investing in Forge Auto International Limited IPO
- Established Business with Strong Track Record: Operating since 2001, the company has a long history in auto component manufacturing, with established relationships in the industry.
- Growth Opportunities: The IPO will provide the company with the necessary capital to expand its production capacity and improve operations.
- Growing Demand for Auto Components: With the automotive sector expected to grow, demand for high-quality forged auto parts is likely to increase.
- Strong Promoter Background: The company’s promoters, Rajan Mittal and Parmod Gupta, have extensive experience in the industry, which strengthens leadership and decision-making?.
- Debt-Free IPO: The issue does not involve debt repayment, allowing more funds to be focused on business growth and working capital.
Cons of Investing in Forge Auto International Limited IPO
- Highly Competitive Market: The auto components industry is highly competitive, with many established players competing for market share.
- Economic Sensitivity: The company’s performance is tied to the health of the automotive sector, which is influenced by economic cycles and market demand.
- Limited Market Presence: As the company is newly converted into a public entity, it may face challenges in establishing itself in a competitive landscape.
- IPO Performance Uncertainty: Being a first-time issuer, there is uncertainty regarding post-listing stock performance and market reception?.
Financial Performance and Market Position
While Forge Auto International Limited has an established history in the auto components sector, its conversion into a private limited company in 2023 means its public financials are relatively new. Investors should carefully assess the company’s revenue trends, profitability, and market competition.
- Revenue Growth: The company has seen consistent demand from its clients, but its ability to scale effectively will depend on future market conditions.
- Profitability: Profit margins are moderate but could improve with the planned business expansion.
- Market Competition: The company operates in a competitive industry, and its growth will depend on how well it adapts to evolving market demands?.
Should You Invest in Forge Auto International Limited IPO?
Investing in Forge Auto International Limited offers a chance to participate in a growing sector of the Indian automotive industry. The company’s long-standing history and plans for expansion make it an attractive option for investors looking to invest in the auto components industry. However, the competitive nature of the market and the company’s limited experience as a public entity present risks that should be carefully considered.
Conclusion
Forge Auto International Limited’s IPO presents both opportunities and risks for potential investors. The company’s established business and experienced promoters offer growth potential, but competition and economic sensitivity are key factors to consider. Investors are encouraged to weigh these factors before making an investment decision.
FAQs About Forge Auto International Limited Ipo
Forge Auto International Limited IPO will open on 26 Sep, 2024 and close on 30 Sep, 2024. Investors must apply within this period to participate.
The Forge Auto International Limited IPO price band is set between ₹102.00 and ₹108.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹129600.00.
The Forge Auto International Limited IPO shares are expected to be listed on 04 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Forge Auto International Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Forge Auto International Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.