Forge Auto International Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹108
Per ShareLot Size
1200 Shares
Minimum Investment
₹1,29,600
Issue Size
₹31.1 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Forge Auto International Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
73.63%
Issue Type
Book Building - SME
ISIN
INE0YKW01013
About the Company
Our Company is an engineering company engaged into forging and manufacturing of complex and safety critical, forged and precision machined components such as big ring, small ring, big ball stud, gear blank with broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc. We primarily serve our customers comprising of domestic and global original equipment manufacturers ("OEMs") engaged into manufacturing for both automotive sector and other nonautomotive sector, used across industries by a diversified base of customers.
Industry Overview
The automobile component industry turnover stood at Rs. 5.6 lakh crore (US$ 69.7 billion) between 2022-23 the industry had revenue growth of 32.8% as compared to 2021-22. Domestic OEM supplies contributed ~66% to the industry's turnover, followed by domestic aftermarket (~12%) and exports (~22.3%), in FY23. The component sales to OEMs in the domestic market grew by 39.5% to US$ 57.62 billion (Rs. 4.76 lakh crore). Between 2022-23, exports of auto components grew by 5.2% to Rs. 1.61 lakh crore (US$ 19.49 billion). As per the Automobile Component Manufacturers Association (ACMA) forecast, automobile component exports from India are expected to reach US$ 30 billion by 2026. In FY22, India's auto component Industry for the first time reached a trade surplus of US$ 700 million.
Company History
Our Company was originally formed as a Partnership Firm in the name and style of "M/s Auto International" under the provisions of the Indian Partnership Act, 1932 pursuant to partnership deed dated April 19, 2001. Later, pursuant to various amendments in the said partnership deed, as on April 01, 2008, Rajan Mittal and Parmod Gupta were the partners of the firm. Consequently, our Firm was converted into a private limited company under Companies Act 2013 with the name `Forge Auto International Private Limited' pursuant to a fresh certificate of incorporation dated April 25, 2023 was issued by the Registrar of Companies, Chandigarh, Punjab bearing CIN: U25910PB2023PTC058272. Subsequently, our Company was converted into a public limited company under Companies Act with the name `Forge Auto International Limited' pursuant to a fresh certificate of incorporation dated June 1, 2024 was issued by the Registrar of Companies, Central Processing Centre, Manesar, Gurgaon, Haryana, 122050, bearing CIN: U25910PB2023PLC058272.
Growth Strategy
- Expand our presence in the forging market.
- Focus on consistently meeting quality standards.
- Focus on Advanced Products.
- Expand capacity at our existing manufacturing facilities.
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of upto 28,80,000 equity shares of face value of Rs. 10/- each (the "Equity Shares") of Forge Auto International Limited ("The Company" or "The Issuer") at an issue price of Rs. 108 per equity share (including share premium of Rs. 98 per equity share) for cash, aggregating up to Rs. 31.10 crores ("Public Issue") out of which 1,46,400 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating Rs. 1.58 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 27,33,600 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating upto Rs. 29.52 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.37% and 25.03 % respectively of the post-issue paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Integrated manufacturing operations with diversified product portfolio.
- Long-standing relationship.
- Experienced Promoters and senior management team.
- Track record of healthy financial performance.
- The company depends on a limited number of customers for its revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength.
- The company does not have agreements/commitment on part of its customers to purchase or place orders with the company, also the company does not have any price agreement with its customers. If the company customers select some other vendors /competitors for their requirement, it may have adverse effect on its business.
- The company depends on a few suppliers for the supply of steel, its primary raw material. Further, the company does not have definitive supply agreements with its suppliers for the supply of steel. If the company suppliers fails to fulfil its requirement, it may have adverse effect on its business.
- The company has taken loans and any inability to comply with repayment and other covenants can adversely affect its business, reputation and financial condition.
- Its business is dependent on the performance of certain other industries which the company is serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact its business and financial condition.