Forge Auto International Share Price Falls After Listing At Nearly 5% Premium Over IPO Price

Shares of Forge Auto International Ltd. made a premium debut on the NSE SME platform, Emerge, on Friday. The stock listed at Rs 113 apiece on the National Stock Exchange, marking a 4.6% gain over the issue price of Rs 108 apiece.

Investors allotted one lot or 1,200 shares in the IPO would have made a profit of Rs 6,000 on an investment of Rs 1,29,600.

Shares of Forge Auto International Ltd. later fell 4.5% and were locked for trading at Rs 108.50 apiece on the NSE at around 12:12 pm.

The Grey Market Premium (GMP) on Forge Auto International shares stood at Rs 15 as per the last update ahead of the listing. The company's shares were expected to list at Rs 123 against the upper IPO price band of Rs 108 apiece, according to InvestorGain.

Investors should note that GMP is speculative and may not be an actual indicator of a stock’s performance on the exchanges.

Forge Auto International IPO subscription remained open from September 26 to September 30. The NSE SME issue was booked 49.35 times during the bidding window.

The strong demand for Forge Auto International's IPO was led by non-institutional Investors who booked their quota 58.9 times. The issue was subscribed 61.95 times in the retail category and 20.12 times in the qualified institutional buyers (QIBs) category.

The IPO was an entirely fresh issue of 28.8 lakh shares aimed at raising Rs 31.1 crore. The price band was set in the range of Rs 102 to Rs 108.

The IPO share allotment status was finalised on Tuesday, October 1. Bigshare Services Pvt Ltd served as the registrar for the issue.

Forge Auto International proposes to use the money raised via the public issue to meet its working capital requirements, repayment of debts, and general corporate purposes.

Forge Auto International forges and manufactures components for the auto industry (automobiles, tractors, railways) and non-auto sectors (agriculture parts, hydraulic parts, striking tools).

The company’s product portfolio includes short and long forks, flange yokes, ball studs, gear blanks, and stub axle assemblies for commercial vehicles and other such components.

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