About the Company:
Ganga Forging Ltd (Incorporated in 1989) is manufacturer in forging industry and is engaged in manufacturing of closed die forged products catering to both automotive and non-automotive segment.
Automotive segment include manufacturing of products catering to commercial vehicle, passenger car, three wheeler, two wheeler and tractor. Non-automotive segment include electric power transmission, dairy equipment manufacturing, agricultural, gear and gear box, crank shafts, connecting road, heavy engineering industrial, hubs and flanges.
Company is engaged in manufacturing of closed die forged products catering to automobile parts, electric power transmission parts, dairy equipment manufacturing parts, agricultural parts, gear and gear box manufacturers, crank shafts, connecting road, heavy engineering industrial parts, hubs and flanges.
Company is mainly catering to the domestic market for auto, agriculture and transmission and earth moving parts and railway components to foreign buyers.
Company’s Proposed Project:
Company is planning to set-up a new manufacturing unit for expanding its business of manufacturing of closed die forging items.
Company is planning to have an annual capacity of 2,400 mt in its new manufacturing facility.
Export & Domestic Revenue Mix: (in Lakhs)
Company’s Capacity Utilization:
Management Team:
- Mr. Hiralal Mahidas Tilva (Designation: Chairman & Managing Director)
- Mr. Rakesh Chhaganlal Patel (Designation: Managing Director)
- Mrs. Sheetal Sanjivkumar Chaniara (Designation: Whole-time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Hiralal Tilva | 12,02,047 | 9.12 |
| Rakesh Chhaganlal Patel | 6,46,668 | 8.46 |
Objectives of the Issue:
- To finance setting up of Closed Die Forging manufacturing facility.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| To finance setting up of Closed Die Forging manufacturing facility |
4.60 |
| General Corporate Expenses | 0.001 |
| Net Proceeds | 4.60 cr |
Positives for the Company:
Conversion to Automotive Production Line.
Currently Company has a manufacturing capacity which is labour intensive and manually operated machineries. This leads to lower level of production and lesser efficiency.
As they move forward, Company belives that to fight competition, they need to have an advanced manufacturing facility. To address the same, Company plans to expand its production capacity by establishment of its second manufacturing facility in Rajkot, which will be automotive and less dependent on manual work.
Company has already imported automated hammering machine from Korea and plans to import its first press line from China.
Direct supply to OEM.
Company currently sells products indirectly to OEMs, the products are sold to the third party distributors/Suppliers who in turn sell these products to OEM’s.
After the establishment of Automated Line, Company intends to sell directly to OEMs which will lead to expansion in the margins and clientele.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 15.56 | 16.95 | 15.57 | 17.69 | 17.79 | 18.18 |
| Net Profit | 0.32 | 0.60 | 0.46 | 0.25 | 0.48 | 0.38 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ganga Forging Ltd | 10 | 1.39 | 15.11 | 12.34% | 11.23 |
| Pradeep Metals Ltd | 10 | 3.00 | 34.55 | 11.61% | 25.80 |
| MM Forgings Ltd | 10 | 35.97 | 31.22 | 13.80% | 260.64 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th June 2018 |
| Issue Closes on:. | 3rd July 2018 |
| Issue Price | Rs.41 |
| Face Value | Rs.10 |
| Minimum Lot | 6000 |
| Minimum Investment | Rs.1,26,000 |
| Issue Constitutes | 29.97% |
| Issue Size | Rs.5 cr |
| Market Cap | Rs.16.68 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 23,82,000 |
| Equity Shares Prior to the Issue | 55,65,331 |
| Equity Shares after the Issue | 79,47,331 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 6th July 2018 |
| Initiation of Refunds | on or Before 9th July 2018 |
| Credit of Equity Shares: | on or Before 10th July 2018 |
| Listing Date: | on or Before 11th July 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio |
|---|---|---|---|---|
| 1.39 | 15.11 | 12.34% | 11.23 | 1.16 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
|---|
| Ganga Forging Limited Plot No 1 SNO 298 & 30 Rajkot Gondal N H, Veraval (Shapar)Rajkot, Gujarat360 024, India. Tel: +912827-252208 /252077 Email: info@gangaforging.com Website: www.gangaforging.com |
| IPO Registrar Info: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai- 400 083, Maharashtra India Tel: 022-49186200 Email: gangaforging.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai ?? 400051, Maharashtra, India Tel: +91-22 61946719 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
