About the Company:
Forge Auto International Ltd is an engineering company engaged into forging and manufacturing of complex and safety critical, forged and precision machined components such as big ring, small ring, big ball stud, gear blank with broach, stub axle assembly, flange yoke 325 HS.
Company caters to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc.
Company primarily serve the customers comprising of domestic and global original equipment manufacturers (“OEMs”) engaged into manufacturing for both automotive sector and other nonautomotive
sector, used across industries by a diversified base of customers.
Company manufactures precision machined components as per customer specifications and International Standard catering to the requirements of various industry such as tractor, agriculture parts, railways, automobiles, commercial vehicle industry, 5th wheel industry, striking tools, hydraulic parts and castor wheel parts and other related industries.
Company manufactures products such as short fork 325HS, long fork, flange yoke 325 HS used in commercial vehicles, ball stud, small ball stud used in railway bogies, gear blank with broach, gear blank without broach, stub axle assembly used in tractors, agricultural equipment, sledge hammers etc.
Company’s product range can be broadly classified into different categories i.e. Automotive sector (i.e. used in the manufacturing of auto components such as tractors, light vehicles, heavy commercial vehicles etc.) and non- automotive sector (i.e. which are used in manufacturing of agricultural, industrial and striking tools etc.).
Company’s History:
Company started the business as a partnership firm in the year 2001, with the vision to make its presence in forging sector.
As on June 30, 2024, Company has established a forging capacity of 20000 MTs and machining capacity of approx. 25 lakhs units per annum for the owned Machinery.
The manufacturing facility of the company is installed with the machines like medium frequency induction heating equipment, CNCs, VMCs (vertical milling centres), hydraulic surface grinder with all accessories, HMI screw press, shot blasting machine, Electric Screw Presses of 1000 MT and 1600 MT, lathe machine etc.
Company’s Installed Capacity & Capacity Utilization:
Company’s Customers:
- Ashok Leyland.
- TAFE.
- Tata Motors.
- ACE Construction Equipment’s.
- Indian Railways.
- VST Tillers Tractors Ltd.
- ISUZU.
- Daimler.
Company’s Revenue bifurcation from the different categories: (in Lakhs)
Company’s Revenue from Domestic and Exports: (in Lakhs)
Management Team:
- Mr. Rajan Mittal (Designation: Managing Director)
- Mr. Parmod Gupta (Designation: Chairman & Wholetime director)
Objectives of the Issue:
Fresh Issue: (Rs.31 cr)
- To meet Working Capital requirements.
- Repayment of certain borrowing availed by our Company, in part or full.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| To meet Working Capital requirements | 19 cr |
| Repayment of certain borrowing availed by our Company, in part or full | 5 cr |
Positives for the Company:
Integrated Manufacturing operations with Diversified Product Portfolio.
- Company started the business as a partnership firm in the year 2001, in the initial years of our operations, we focused on manufacturing components such as tractor parts. Later, according to the market demand and customer’s requirement we gradually expanded our product portfolio to include heavy and light vehicle parts, agricultural parts, railway parts and many more.
- Further, during the year 2021, Company forayed into the manufacturing of hydraulic components, castor wheel components, industrial goods and other sectors to cater to the growing demand in the forging and machining sector in the India and outside India.
Company Plans to Expand its presence in the forging market.
- As a part of Company’s growth strategy our focus is on increasing sales volume through expansion, diversification and spread in geographical outreach. Company has a track record of developing forging and machining products for both automotive and nonautomotive sectors over a decade.
- To tap into the growing industrial market, we intend to leverage our engineering and product development capabilities to manufacture precision components for industrial applications.
- Further, company is taking steps to increase the capacity by installing additional plant and machinery to expand our capabilities by adding new solutions for heavy machining and foraying into heavy forgings in different sectors like defence, gas and oil aluminium forging etc.
Company Plans to Expand the Capacity at existing manufacturing facilities.
- Company operates from our manufacturing facility located at Ludhiana, Punjab. Company is taking steps towards increasing our existing manufacturing capabilities. The additional production capacity in terms of production through these steps will be 15 lakh Forging (6132 MT Per Annum) and/or machining components.
- The installation of new machinery and equipment will enable us to increase our production capacity, scale our operations, onboard new customers, introduce new products, better serve our existing customers, enable us to better address the business requirements of our customers, improve our customer service and facilitate our growth strategy.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 134.0 | 177.6 | 181.5 |
| Net Profit | 2.64 | 4.96 | 6.68 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Forge Auto International Ltd |
10 | 10.21 | 10.57 | 32.14% | 25.88 |
| Balu Forge Ltd | 10 | 9.74 | 81.87 | 16.94% | 53.90 |
| MM Forging Ltd | 10 | 55.94 | 10.34 | 17.11% | 326.87 |
| Happy Forging Ltd | 2 | 26.75 | 45.32 | 15.07% | 171.17 |
| Samrat Forgings Ltd |
10 | 5.95 | 62.34 | 9.42% | 63.15 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th September 2024 |
| Issue Closes on | 30th September 2024 |
| Issue Price | Rs.102 -108 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,29,600 |
| Issue Constitutes | 26.37 % |
| Issue Size | Rs.31 cr |
| Market Cap | Rs. 118 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 28,80,000 (Rs.31 cr) |
| Equity Shares Prior to the Issue | 80,40,000 |
| Equity Shares after the Issue | 1,09,20,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 10.21 | 10.57 | 32.14% | 25.88 | 1.94 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Forge Auto International Ltd is an engineering company specializing in the forging and manufacturing of complex and safety-critical forged components. These include precision machined parts such as big rings, small rings, big ball studs, gear blanks with broach, stub axle assemblies, and flange yoke 325 HS. The company serves a wide range of industries, including the automotive sector (automobiles, tractors, railways) and non-automotive sectors like agriculture, hydraulics, and striking tools.
Forge Auto International caters to both domestic and global original equipment manufacturers (OEMs), providing components across industries to a diversified customer base. Some notable customers include Ashok Leyland, TAFE, Tata Motors, Indian Railways, ISUZU, and Daimler. With integrated manufacturing operations and a diversified product portfolio, the company is well-positioned for growth. It plans to expand its presence in the forging market by increasing capacity at its existing manufacturing facilities. For long-term investors, this IPO offers a potential opportunity for growth. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st October 2024 |
| Initiation of Refunds | on or Before 3rd October 2024 |
| Credit of Equity Shares: | on or Before 3rd October 2024 |
| Listing Date: | on or Before 4th October 2024 |
| Company Contact Info: |
|---|
| Forge Auto International Ltd Village Mangarh, Kohara- Machhiwara Road, Ludhiana, Punjab, India, 141001. Tel No: +91- 8999999195 E-mail: sm@aint.in Website: www.failtd.com |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Address: S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, Maharashtra, India. Telephone: +91 22 6263 8200; Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
