Forge Auto International came to market through an SME IPO that opened on 26 September 2024 and closed on 30 September 2024, and the shares listed on 4 January 2025 on NSE SME. The price band was ₹102 to ₹108 per share and one lot was 1200 shares, so the minimum application was ₹1,29,600. The issue size was ₹31.1 crore. The whole issue was fresh shares, so the money raised went to the company.
Bigshare Services Pvt Ltd was the registrar to the issue, and Hem Securities Limited was the lead manager.
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Incorporated in 2001, Forge Auto International Limited is an engineering company that forges and manufactures complex, safety-critical, forged, and precision-machined components for the auto industry (automobiles, tractors, railways) and non-auto sectors (agriculture parts, hydraulic parts, striking tools). The company serves its customers, which include original equipment manufacturers from the domestic and international sectors engaged in the manufacturing of automotive as well as non-automotive products. The products used in a number of industries cater to a diversified customer base.
Revenue from sales of machined and forging products of the company has increased to Rs 17664.85 lakhs in Fiscal 2023 from Rs 10951.99 lakhs of Fiscal 2021. This registers a CAGR of 27% and indicates that the company has now begun to focus more upon its products. The company produces short and long forks, flange yokes, ball studs, gear blanks, and stub axle assemblies for commercial vehicles, railway bogies, tractors, agricultural equipment, and sledgehammers.
The company is certified with the following standards: ISO 9001:2015 quality management systems, ISO 14001:2015 environmental management systems, OHSAS 18001:2007 occupational health and safety management systems, IATF 16949:2016 for business with OEMs manufacturing components in the automotive industry, and ZED GOLD by the Government of India for sustainability with Zero Effect and Zero Defect. As of March 31, 2024, there are 14 employees in house sales and marketing.
As of March 31, 2024, the total permanent employees were 366 in different departments.
As described in the offer document.
Parmod Gupta, Rajan Mittal. Promoter holding 100% before the issue and 73.63% after.
Work out the listing gain for this SME IPO
If the retail portion is not fully subscribed, every valid application is allotted in full. If it is oversubscribed, SEBI's rules require that as many applicants as possible receive at least one lot, so the shares are allotted by a computerised lottery across all valid applications, one lot each, until the retail portion is exhausted. Applying for more lots does not improve your chance in a lottery; it only increases what you receive if the issue is under-subscribed.
The basis of allotment document, published by the registrar on the allotment date, states the ratio: for example, one applicant in seven received one lot.
Allotment status is published by the registrar on its website, searchable by PAN, application number or demat account, and also on the exchange's website. Allotted shares are credited to the demat account the day before listing, and blocked money for unsuccessful applications is released the same day. The Rupix app can check allotment status by PAN once the registrar publishes it.
Shares list within three working days of the issue closing. On listing day the exchanges run a special pre-open session from nine o'clock, during which orders are collected and an opening price is discovered from them; trading in the share begins after that, usually around ten. The opening price is the listing price that appears on this page once the issue has listed, and the listing gain or loss is the difference between it and the issue price.
For a mainboard issue, the share then trades in the normal way with the exchange's price band for a new listing. For an SME issue, shares trade in lots rather than one at a time, and the market can be thin, so selling on listing day is not always possible at the opening price. Capital gains on shares sold within a year of allotment are short-term and taxed at the short-term rate.
Forge Auto International IPO was a ₹31.1 crore book-built issue, made up entirely of a fresh issue. It was priced at ₹102–₹108 per share with a lot size of 1,200 shares (₹1,29,600). The IPO was open from September 26 to September 30, 2024. Shares listed on NSE SME on January 4, 2025 at ₹113, a 4.6% premium to the issue price of ₹108. Bigshare Services Pvt Ltd is the registrar. Hem Securities Limited is the book running lead manager.
The price band of Forge Auto International IPO is ₹102 to ₹108 per share.
The lot size of Forge Auto International IPO is 1200 shares.
The minimum investment for Forge Auto International IPO is approximately ₹1,29,600 based on the upper price band.
The allotment date of Forge Auto International IPO is Oct 1, 2024.
Forge Auto International IPO's final recorded GMP before listing was ₹14 per share (a 13% premium over the ₹108 upper price band). The shares listed at ₹113. GMP is unofficial and does not forecast or guarantee the actual listing price.
You can check Forge Auto International IPO allotment status on the registrar or stock exchange websites using your PAN or application number after allotment. You can also check the Forge Auto International IPO allotment status on Rupix for quick and easy access.
₹102 to ₹108 per share, against a face value of ₹10. Most applicants bid at the cut-off price, the top of the band, so that the application was valid whatever price the issuer finally fixed.
One lot was 1200 shares, and every application had to be a whole number of lots. At the top of the band that made the minimum application ₹1,29,600. After listing, SME shares also trade in lots rather than one share at a time.
₹1,29,600, for one lot of 1200 shares at the top of the price band. The amount was blocked in the applicant's bank account through ASBA or a UPI mandate while the issue was open, and released on the allotment date to applicants who were not allotted shares.
It opened on 26 September 2024 and closed on 30 September 2024.
The basis of allotment was published on 1 October 2024 by Bigshare Services Pvt Ltd, and allotted shares were credited to demat accounts before listing.
The shares listed on 4 January 2025 on NSE SME.
The issue size was ₹31.1 crore. The fresh issue was 28,80,000 shares (aggregating up to ₹31.1 crore).