The Forge Auto International Limited IPO is a highly anticipated SME IPO offering that has piqued the interest of many investors looking for lucrative opportunities. As Forge Auto International prepares to go public, this IPO will provide investors with a chance to invest in a promising company with strong industry roots. With an expected issue size of ₹31.10 crores and a lot size that accommodates both retail investors and high-net-worth individuals (HNI), the Forge Auto International Limited IPO is likely to attract attention from various market segments.
The Forge Auto International Limited IPO will open for subscription on September 26, 2024, and close on September 30, 2024. This SME IPO is expected to raise ₹31.10 crores through the issuance of 28.8 lakh shares, with a price band ranging from ₹102 to ₹108 per share. Investors can apply in lots, with each lot consisting of 1,200 shares. For retail investors, this means a minimum investment of ₹129,600, while high-net-worth individuals (HNI) will need to apply for at least two lots, amounting to ₹259,200.
The IPO will be listed on the NSE SME exchange, making it an attractive entry point for those looking to invest in IPOs in the SME sector. Hem Securities Limited is the book-running lead manager, and Bigshare Services Pvt Ltd is the registrar for this issue. Below are the Forge Auto International Limited IPO details:
| Particulars | Details |
| Forge Auto International Limited IPO open date | September 26, 2024 |
| Forge Auto International Limited IPO close date | September 30, 2024 |
| Forge Auto International Limited IPO listing date | October 4, 2024 |
| Forge Auto International Limited IPO issue size | ₹31.10 crores (28.8 lakh shares) |
| Face value | ₹10 per share |
| Price band | ₹102 to ₹108 per share |
| Forge Auto International Limited IPO lot size | 1200 shares |
| Issue type | Book Built Issue |
| Forge Auto International Limited IPO listing at | NSE SME |
The tentative timeline for the Forge Auto International Limited IPO SME is outlined below, giving investors a clear idea of the critical dates for subscription and listing:
| Event | Date |
| Forge Auto International Limited IPO open date | September 26, 2024 |
| Forge Auto International Limited IPO close date | September 30, 2024 |
| Basis of share allotment | October 1, 2024 |
| Initiation of refunds | October 3, 2024 |
| Credit of shares to demat | October 3, 2024 |
| Forge Auto International Limited IPO listing at | October 4, 2024 |
Incorporated in 2001, Forge Auto International Limited specialises in the forging and manufacturing of precision-machined components for both the automotive and non-automotive sectors. The company produces safety-critical parts that are integral to the operation of commercial vehicles, tractors, railway bogies, and agricultural machinery.
The company’s product portfolio includes short and long forks, flange yokes, gear blanks, ball studs, and stub axle assemblies. These parts are used across industries, serving both domestic and international original equipment manufacturers (OEMs). With its ISO-certified facilities and a focus on quality and timely delivery, Forge Auto International Limited has established itself as a reliable partner in the automotive supply chain.
Forge Auto International Limited has demonstrated consistent financial growth over recent years. From fiscal year 2021 to 2023, the company’s revenue grew at a compounded annual growth rate (CAGR) of 27%, underlining its strong market presence and operational efficiency. The financial highlights are:
| Period Ended | 31 Dec 2023 | 31 Mar 2023 |
| Assets (₹ Lakhs) | 9,127.24 | 8,274.29 |
| Revenue (₹ Lakhs) | 13,540.6 | 17,764.43 |
| Profit After Tax (₹ Lakhs) | 362.22 | 496.29 |
| Net Worth (₹ Lakhs) | 1,774.22 | 1,660.35 |
| Borrowings (₹ Lakhs) | 3,228.63 | 3,183.2 |
The Forge Auto International Limited IPO review reveals several strengths that make this SME IPO stand out:
While the company has several strengths, potential investors should be aware of a few challenges:
If you’re evaluating upcoming IPOs to invest in, Forge Auto International Limited IPO SME could be an appealing option, given the company’s solid financials and established market position. The company’s consistent growth and diverse product portfolio in the automotive sector provide a strong foundation for future growth. However, investors should consider industry cyclicality and the risks associated with customer concentration before making a decision.
In terms of Forge Auto International Limited IPO GMP (Grey Market Premium), the early signals in the market show a positive sentiment, indicating that the IPO might be well-received by investors. However, as always, it is crucial to perform thorough research before making any investment decisions.
The Forge Auto International Limited IPO stands out as a well-rounded opportunity for those looking to invest in IPOs, especially within the SME segment. With a strong financial track record and a robust portfolio, the company is well-positioned for future growth. However, as with all investments, it is crucial to assess both the strengths and risks before making a decision.
The price band for the Forge Auto International Limited IPO is set at ₹102 to ₹108 per share.
The Forge Auto International Limited IPO will open on September 26, 2024, and close on September 30, 2024.
The Forge Auto International Limited IPO GMP reflects positive market sentiment, though investors should verify the GMP closer to the listing date.
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