Forge Auto International IPO

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26th – 30th Sep 2024
04 Oct 2024
₹102 – ₹108
Lot size 1200 — ₹129600
31cr

Schedule of Forge Auto International

Issue open date 26 Sep 2024
Issue close date 30 Sep 2024
UPI mandate deadline 30 Sep 2024 (5 PM)
Allotment finalization 01 Oct 2024
Refund initiation 03 Oct 2024
Share credit 03 Oct 2024
Listing date 04 Oct 2024
Mandate end date 15 Oct 2024
Lock-in end date for anchor investors (50%) 30 Oct 2024
Lock-in end date for anchor investors (remaining) 29 Dec 2024

Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.

About Forge Auto International

Forge Auto International, founded in 2001, is a reliable manufacturer, Original Equipment Manufacturer (OEM) supplier, and exporter of drop-forged and machined components based in Ludhiana. The company supplies to well-known OEMs such as Sonalika, TAFE, Mahindra & Mahindra, CNH, Tata, Ashok Leyland, Isuzu, and Daimler in India, operating as a Tier 1 and Tier 2 supplier. In addition to serving the Indian market, Forge Auto International exports to countries like Poland, Germany, Denmark, Turkey, Brazil, and other European nations. The company is focused on growing its business by building partnerships with respected organizations.


Financials of Forge Auto International


Issue size

Funds Raised in the IPO Amount
Overall ₹31.10 crores
Fresh Issue ₹31.10 crores
Offer for sale

Utilisation of proceeds

Purpose INR crores (%)
Working capital requirements 19 (61.09%)
Debt reduction 5 (16.08%)
General corporate purposes 7.1 (22.83%)

Strengths

  • Forge Auto International operates almost debt-free, with a cash conversion cycle of zero days.
  • The company prioritizes sustainability, utilizing renewable energy, bio-lubricants, recycled materials, and energy-efficient production practices.
  • It holds multiple certifications for quality, environmental management, and occupational health and safety.
  • Advanced technology, such as CAD/CAM systems, 3D printing, and forging simulation software, is integrated into its manufacturing

Risks

  • Volatility in raw material prices, such as carbon and alloy steel, can affect profitability.
  • The auto parts industry is highly competitive, with significant pressure from imports.
  • The industry is closely tied to the cyclical nature of the domestic automobile market.
  • Risks related to international trade can also pose challenges for companies.