Forge Auto International Limited is launching its Initial Public Offering (IPO) from September 26, 2024, to September 30, 2024. This IPO aims to raise funds to help the company grow and expand, making it a notable opportunity for investors interested in the automotive sector.
The IPO will issue 28.8 lakh shares, raising up to ₹31.10 crores. The price range is set at ₹102 to ₹108 per share, with a face value of ₹10 per share. The minimum lot size for this IPO is 1200 shares.
Company Background
Founded in 2001, Forge Auto International Limited is an engineering company that specializes in making complex, safety-critical forged and precision-machined components for both the automotive and non-automotive sectors. The company has built a solid reputation for high-quality products and innovative engineering solutions.
Objectives of the IPO
The main goals of the IPO include:
- Funding the company’s expansion plans
- Increasing production capacity
- Investing in new manufacturing technologies
- Supporting general business needs
Forge Auto International IPO Details
| IPO Open Date: | September 26, 2024 |
| IPO Close Date: | September 30, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹102 to ₹108 Per Share |
| Issue Size: | Approx ₹31.10 Crores |
| Fresh Issue: | Approx ₹31.10 Crores |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
Forge Auto International IPO Market Lot
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1,200 | ₹129,600 |
| Retail Maximum | 1 | 1,200 | ₹129,600 |
| HNI Minimum | 2 | 2,400 | ₹259,200 |
Forge Auto International Financial Report
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2021 | ₹109.75 | ₹107.52 | ₹1.61 | ₹53.07 |
| 2022 | ₹134.00 | ₹130.26 | ₹2.64 | ₹56.78 |
| 2023 | ₹177.64 | ₹170.71 | ₹4.96 | ₹82.74 |
| Dec 2023 | ₹135.41 | ₹130.04 | ₹3.62 | ₹91.27 |
Forge Auto International has shown steady financial growth over the years. Key figures include:
- Revenue: ₹177.64 crores in 2023, up from ₹134.00 crores in 2022.
- Profit: ₹4.96 crores in 2023, compared to ₹2.64 crores in 2022.
These results indicate a strong business model and effective operations.
Anchor Investors
Several anchor investors have shown interest in the IPO, reflecting the market’s trust in Forge Auto International’s business model and growth potential. These investors help stabilize the IPO and provide initial support.
Industry Overview
The automotive and manufacturing industries in India are growing rapidly, driven by the increasing demand for high-quality, precision-engineered components. Forge Auto International is well-positioned to benefit from these trends with its advanced manufacturing capabilities and solid market presence.
Business Model and Strategy
Forge Auto International follows a vertically integrated business model that includes the design, forging, and machining of components. Key strategies include:
- Expanding its market reach
- Improving operational efficiency
- Investing in new technologies
Key Strengths
- Innovative Engineering: Use of advanced manufacturing methods.
- High-Quality Products: Commitment to safety-critical and precision-engineered components.
- Market Position: Strong presence and good reputation in the automotive and manufacturing industries.
- Financial Stability: Consistent financial growth.
Risks and Challenges
While the company is set for growth, there are some risks to consider:
- Regulatory Risks: Changes in industry regulations could affect operations.
- Market Competition: Strong competition in the automotive and manufacturing sectors.
- Operational Risks: Dependence on the availability and quality of raw materials.
Future Outlook
The future looks bright for Forge Auto International. The company plans to expand operations, invest in new technologies, and explore new markets. Its focus on innovation and quality aligns with industry trends, setting it up for long-term success.
Investment Considerations
Potential investors should think about:
- Strengths: Strong market position, innovative engineering, and solid financial performance.
- Risks: Be aware of possible regulatory changes and competition.
Forge Auto International’s IPO offers a great investment opportunity for those interested in a company focused on innovation and proven financial growth. With its plans for expansion and commitment to quality, Forge Auto International is well-prepared to tackle challenges and take advantage of opportunities in the automotive and manufacturing sectors. Investors should carefully consider this offering during the IPO window.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Forge Auto International’s IPO has been positive, indicating strong interest from investors and confidence in the company’s future. A positive GMP suggests that the shares may trade at a higher price once they are listed.
| Date | IPO GMP |
|---|---|
| 26 Sep 2024 | ₹30 |
| 25 Sep 2025 | ₹30 |
FAQs
Investors should consider risks like changes in regulations, strong competition, and reliance on the quality of raw materials.
The company has shown steady revenue growth and improved profits over the years, indicating strong financial health.
The automotive industry is expected to grow significantly, driven by increasing demand for quality components and technological advancements.
Disclaimer
This overview of the Forge Auto International IPO is provided for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell shares. Investing in the stock market involves risks, including the risk of loss. Before making any investment decisions, please consult with a financial advisor and carefully review the IPO prospectus and other relevant documents. The information contained herein is based on available data and is subject to change.
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