Ganga Forging Ltd

ganga forgings

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)

revenue mix


Company’s Capacity Utilization:

capacity utilization


Management Team:

  1. Mr. Hiralal Mahidas Tilva (Designation: Chairman & Managing Director)
  2. Mr. Rakesh Chhaganlal Patel (Designation: Managing Director)
  3. 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
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


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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


IPO Registrar Info:
C-101, 247 Park, L.B.S. Marg, Vikhroli
(West), Mumbai- 400 083, Maharashtra India
Tel: 022-49186200


Lead Manager to the Issue:
406-408, Keshava Premises, Behind
Family Court, Bandra Kurla Complex, Bandra (East),
Mumbai ?? 400051, Maharashtra, India
Tel: +91-22 61946719