Forge Auto International IPO Day 3: GMP, Subscription Status And More

Forge Auto International Ltd.'s initial public offering opened on September 26 and will close for subscription on Monday. The SME issue was subscribed 4.61 times on Day 1 and 11.27 times on Day 2. The public issue consists entirely of a fresh issue of 28.8 lakh shares, totalling Rs 31.1 crore.

The IPO has been subscribed 48.97 times as of 4:40 p.m. on Monday

• Qualified Institutions: 20.13 times

• Non-institutional buyers: 58.49 times

• Retail investors: 61.37 times

The subscription status will be updated at regular intervals

The grey market premium (GMP) of Forge Auto International is Rs 15 as of 12:57 p.m. on September 30, implying an 13.89% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 123 per share.

GMP is not an official price quote for the stock and is based on speculation. 

The price band for the Forge Auto International IPO has been fixed at Rs 102 to Rs 108 per share. Retail investors can apply for the issue with a minimum lot size of 1 lot or 1,200 shares, totalling an investment of Rs 1,29,600.

As per the company's red herring prospectus, of the 28,80,000 shares offered - 19% is reserved for Qualified Institutions, 14.25% for Non-institutional investors, 33.25% for Retail investors and 28.42% for Anchor investors.

Bigshare Services Pvt. has been appointed as the registrar for the Forge Auto International IPO, whereas Hem Securities Ltd. is the book-running lead manager for the issue.

Forge Auto International IPO’s market maker is Hem Finlease Pvt.

The company will finalise the allotment of shares in the offering on October 1. The initiation of refunds for non-allottees and credit of shares into the Demat accounts of successful bidders on October 3 will follow this.

Forge Auto International shares are set to be listed on the NSE SME platform, Emerge, tentatively on October 4.

Forge Auto International is an engineering company, engaged in the forging and manufacturing of machined components. The company caters to sectors like the auto industry, railways and other such sectors.

Forge Auto International’s product range includes rings, big ball studs, gear blank with a broach, stub axle assembly, flange yoke 325 HS and other such components.

Forge Auto International plans to use the money raised via the public issue to meet working capital requirements and settlement of debt. A portion of the proceeds will be used for general corporate purposes.

Forge Auto International’s total income for fiscal 2024 increased over 2% year-on-year to Rs 181.57 crore, compared to Rs 177.64 crore in fiscal 2023. The company’s profit after tax increased over 34% to Rs 6.68 crore in FY24, up from Rs 4.96 crore in the previous financial year.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.