Forge Auto International Limited IPO opens today; check price band and other details here

Forge Auto International Limited IPO opened for subscription today on Thursday, September 26 and closes on Monday, September 30. The allotment for the IPO is expected to be finalised on Tuesday, October 1. Forge Auto International IPO will list on NSE SME with a tentative listing date fixed as Friday, October 4.

Forge Auto International IPO price band is set at ₹102 to ₹108 per share. The minimum lot size for an application is 1200 shares with the minimum amount of investment required by retail investors of ₹1,29,600. On the other hand, the minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2,59,200. Pramod Gupta and Rajan Mittal are the promoters of the company.

The IPO has been subscribed 1.52 times in the retail category, and 1.11 times in the Non-Institutional Investors (NII) category as of 12:31 PM.

Incorporated in 2001, Forge Auto International Limited manufactures safety-critical, precision-machined components for both the automotive (vehicles, tractors, railways) and non-automotive sectors (agriculture, hydraulic). The company has a diverse customer base, including domestic and global OEMs, and has shown strong revenue growth, with a 27% CAGR from Fiscal 2021 to 2023.

Certified for quality and sustainability, it operates with a forging capacity of 20,000 MT and a machining capacity of 25 lakh units. As of March 2024, it has 366 permanent employees and a sales team of 14.

The net proceeds are planned to be allocated toward meeting the company's working capital requirements, repaying specific borrowings, and addressing general corporate purposes.

These allocations will support the company's operational growth, improve liquidity, and enhance overall financial flexibility, ensuring the business can efficiently manage its day-to-day operations and strategic objectives.