Forge Auto International Limited is coming up with an IPO with a fresh issue of 28,88,000 shares worth INR 31.10 crores. The company aims to meet the working capital requirement, repay specific borrowing, and fund for general corporate purposes.
Forge Auto International SME IPO – Important Dates
| Forge Auto International Limited IPO Date | September 26, 2024 to September 30, 2024 |
| Forge Auto International Limited IPO Listing Date | October 4, 2024 |
| Forge Auto International Limited IPO Price | INR 102-108 per share |
| Forge Auto International Limited IPO Lot Size | 1200 Shares |
| Forge Auto International Limited IPO Total Issue Size | INR 31.10 crores |
| Forge Auto International Limited IPO Basis of Allotment | October 1, 2024 |
| Forge Auto International Limited IPO Initiation of Refunds | October 3, 2024 |
| Forge Auto International Limited IPO Credit of Shares to Demat | October 3, 2024 |
| Forge Auto International Limited IPO Issue Type | Book Built Issue IPO |
| Forge Auto International Limited IPO Listing At | NSE SME |
Read more about Forge Auto International Limited IPO GMP
Forge Auto International Limited IPO – Company Profile
The Company is an engineering company engaged in forging and manufacturing of complex and safety-critical, forged and precision machined components such as big rings, small rings, big ball studs, gear blank with a 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.
The company primarily serves customers comprising domestic and global original equipment manufacturers (“OEMs”) engaged in manufacturing for both the automotive sector and other nonautomotive sectors, used across industries by a diversified base of customers.
Apart from domestic sales, the company exports its products to countries like France, Germany, Poland, Brazil, Austria, Turkey, and the United States of America.
Forge Auto International Ltd IPO Fundamental Analysis
Forge Auto International has demonstrated stable revenue growth, profitability, and improved shareholder returns, with a healthy increase in assets. However, the rise in liabilities should be monitored.
Revenue and Expenses:
- Revenue increased steadily from ₹13,287.85 lakhs in 2022 to ₹18,011.72 lakhs in 2024, reflecting consistent growth.
- Expenses followed a similar pattern, rising from ₹13,025.84 lakhs in 2022 to ₹17,228.09 lakhs in 2024, indicating stable operational costs.
Profit and EPS:
- Profit after tax grew from ₹264.34 lakhs in 2022 to ₹668.88 lakhs in 2024, demonstrating strong profitability.
- Diluted EPS increased from ₹4.04 in 2022 to ₹10.21 in 2024, indicating a positive trend in earnings per share.
Return on Net Worth (RoNW):
- RoNW rose from 19.33% in 2022 to 32.14% in 2024, suggesting improved returns on equity, a sign of efficient financial management.
Net Asset Value (NAV):
- NAV per equity share improved from ₹17.01 in 2022 to ₹25.88 in 2024, reflecting growth in shareholder value.
Assets and Liabilities:
- Total assets increased significantly from ₹5,677.94 lakhs in 2022 to ₹10,148.67 lakhs in 2024, indicating expansion.
- Liabilities also grew from ₹4,310.21 lakhs to ₹8,867.79 lakhs, which may signal the need for careful debt management.
Forge Auto International SME IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 13,287.85 | 17,664.85 | 18,011.72 |
| Equity (₹ in lakhs) | 1,367.73 | 1,660.34 | 1,280.88 |
| Expenses (₹ in lakhs) | 13,025.84 | 17,071.46 | 17,228.09 |
| Profit and Loss After Tax (₹ in lakhs) | 264.34 | 496.29 | 668.88 |
| Diluted EPS only (₹) | 4.04 | 7.58 | 10.21 |
| Return on Net Worth (%) | 19.33 | 29.89 | 32.14 |
| NAV per Equity Share (₹) | 17.01 | 20.65 | 25.88 |
| Total Assets (in lakhs) | 5,677.94 | 8,274.29 | 10,148.67 |
| Total Liabilities (in lakhs) | 4,310.21 | 6,613.95 | 8,867.79 |
Forge Auto International Limited IPO Peer Comparison
Forge Auto International Limited has the highest RoNW at 32.14%, indicating better return efficiency compared to peers. In contrast, Balu Forge Auto International and MM Forging Limited show strong revenue figures, with MM Forging also having a robust EPS.
| Company | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) |
| Forge Auto International Limited | 18,011.72 | 10 | NA | 10.21 | 10.21 | 32.14 |
| Balu Forge Auto International Limited | 55,985.58 | 10 | 81.87 | 9.80 | 9.74 | 16.94 |
| MM Forging Limited | 1,56,306.61 | 10 | 10.34 | 55.94 | 55.94 | 17.11 |
| Happy Forging Limited | 1,35,823.58 | 2 | 45.32 | 26.78 | 26.75 | 15.07 |
| Samrat Forgings Ltd. | 16,202.83 | 10 | 62.34 | 5.95 | 5.95 | 9.42 |
Forge Auto International Ltd IPO Objective
The main objective of Forge Auto International is to utilize INR 19 crores from the net proceeds for working capital, INR 5 crores for debt repayment, and the remainder for general corporate purposes, including operational costs and growth initiatives.
- To Meet Working Capital Requirements: The company intends to utilize INR 19 crores from the Net Proceeds of the Offer for additional working capital, with the remainder sourced from internal accruals and borrowings to support inventory and operational needs.
- Repayment of a portion of specific borrowing availed by their company: The company plans to utilize INR 5 crores from the Net Proceeds to partially repay outstanding borrowings, aiming to reduce indebtedness, lower debt servicing costs, and improve leverage for future growth and expansion opportunities.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Forge Auto International SME IPO Risks And Challenges
Forge Auto International’s risks include reliance on the performance of industries like automobiles and railways, substantial working capital needs potentially leading to operational constraints if financing is unavailable, and dependence on a limited customer base, where loss could adversely affect revenue.
- The business is dependent on the performance of certain other industries that the company is serving, particularly automobiles, tractors, railways, farm equipment, etc. Any adverse changes in the conditions affecting these industries can adversely impact the business and financial condition.
- The company has substantial working capital requirements and may require additional capital and financing in the future and the operations could be curtailed if they are unable to obtain the required additional capital and financing when needed.
- The company is dependent on a limited number of customers for the revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on the business, and operations and could have impacted the financial strength.
Forge Auto International Ltd IPO – Industry & Market Potential
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.
Forge Auto International Limited IPO – Type of Offer
Forge Auto International Limited is launching an IPO featuring a fresh issue of 28,88,000 shares valued at INR 31.10 crores. The funds will be utilized to meet working capital needs, repay certain borrowings, and support general corporate purposes.
Forge Auto International SME IPO Offer Size
The offer size consists of a fresh issue of 28,88,000 shares valued at INR 31.10 crores by Forge Auto International Limited. The company intends to utilize the funds for working capital, repayment of specific borrowings, and general corporate purposes.
Forge Auto International Limited IPO Allotment Structure
Forge Auto International Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,46,400 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 1,46,400 shares, are reserved for market makers.
Read more about Forge Auto International IPO Allotment Status
How to apply for the Forge Auto International SME IPO?
To apply for the Forge Auto International Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Forge Auto International Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Forge Auto International Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Forge Auto International IPO Day 1 Subscription
How do you check Forge Auto International IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Forge Auto International Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Forge Auto International Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Forge Auto International Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Forge Auto International Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Forge Auto International IPO Day 2 Subscription
Forge Auto International Ltd IPO Offer Registrar
The registrar for the Forge Auto International Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
S6-2, 6th Floor, Pinnacle Business Park,
Andheri (East) Mumbai – 400093.
Telephone: +91 22 6263 8200;
Email: [email protected]
Website: www.bigshareonline.com
Read more about Forge Auto International IPO Day 3 Subscription
Forge Auto International IPO – FAQs
1. What is the allotment date of the Forge Auto International IPO?
The allotment date of the Forge Auto International Limited IPO is October 1, 2024.
2. What is the price band of the Forge Auto International IPO?
The price band of the issue is INR 102 -108 per share.
3. What is the size of the Forge Auto International IPO?
The offer size consists of a fresh issue of 28,88,000 shares valued at INR 31.10 crores by Forge Auto International Limited. The company intends to utilize the funds for working capital, repayment of specific borrowings, and general corporate purposes.
4. What is the listing date of the Forge Auto International IPO?
The listing date of Forge Auto International Limited’s IPO is October 4, 2024.
