The Phoenix Mills Ltd. (PDF)
Trending Sector
Top Losers
Current IPOs
Closed IPOs
Listed IPOs
IPO Performers
CAGR Calculator
SIP Calculator
Retirement Planning Calculator
Adani Ports and SEZ
Forge Auto International Ltd IPO
Status: Closed
Overview
IPO date
26 Sept 2024 to 30 Sept 2024
Face value
₹ 10 per share
Price
₹ 102 to ₹108 per share
Issue Size
2,880,000 shares
(aggregating up to ₹ 31.1 Cr)
(aggregating up to ₹ 31.1 Cr)
Allotment Date
01 Oct 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
Castings, Forgings & Fastners
Objectives of Forge Auto International Ltd IPO
Initial public offer of upto 28,80,000 equity shares of face value of
Rs. 10/- each (the "Equity Shares") of Forge Auto International Limited ("The Company" or "The Issuer") at an issue price of Rs. 108 per equity share (including share premium of Rs. 98 per equity share) for cash, aggregating up to Rs. 31.10 crores ("Public Issue") out of which 1,46,400 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating Rs. 1.58 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 27,33,600 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating upto Rs. 29.52 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.37% and 25.03 % respectively of the post-issue paid-up equity share capital of the company.
Forge Auto International Ltd IPO Strategy
- Expand our presence in the forging market.
- Focus on consistently meeting quality standards.
- Focus on Advanced Products.
- Expand capacity at our existing manufacturing facilities.
About Forge Auto International Ltd
Forge Auto International Limited was originally formed as a Partnership Firm in the name and style of 'M/s Auto International' pursuant to Partnership Deed dated April 19, 2001. Later, the Firm was converted into a Private Company with the name Forge Auto International Private Limited' pursuant to a fresh Certificate of Incorporation dated April 25, 2023 issued by the Registrar of Companies, Chandigarh, Punjab. The Company subsequently converted into a Public Limited Company with the name Forge Auto International Limited' and a Fresh Certificate of Incorporation dated June 1, 2024 was issued by the Registrar of Companies, Central Processing Centre, Manesar, Gurgaon, Haryana.
Company is an engineering company engaged into forging and manufacturing of complex and safety critical, forged and precision machined components such as big ring, small ring, big ball stud, gear blank with broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc.
The Company started the business as a partnership firm in year 2001, to make its presence in forging sector. The manufacturing facility of the company is installed with the machines like medium frequency induction heating equipment, CNCs, VMCs (vertical milling centres), hydraulic surface grinder with all accessories, HMI screw press, shot blasting machine, Electric Screw Presses of 1000 MT and 1600 MT, lathe machine, continuous heat treatment furnace with ISO thermal annealing, normalising, quenching and tempering, pillar drilling machine / circular saw machine, Spectrometer and PMI, Ultrasonic washing machine, MPI equipment, rolling machine, 6 Drop Forge Hammers ranging from 1MT to 2.5MT, Broaching (both Horizontal and Vertical), Laser Marking Machines, Coining Presses along with testing equipments like Magna Flux Crack Detection Machines, Standard Room (with CMM, Contour Tracers, Roughness Tester, Height Gauge and other testing instruments), Design & Engineering (with Solid Works, Solid Edge, NX Cam, Q Form Simulation Software and 3D Printer) and utility equipments like forklift, EOT crane, transformer and panels capable of undertaking the forging and machining activities.
In 2021, the Company ventured into the manufacturing of hydraulic components, castor wheel components, industrial goods and other sectors to cater to the growing demand in the forging and machining sector in the India and outside India.
The Company is planning the Fresh Issue of 28,80,000 Equity Shares by way of Initial Public Offer.
Unlock Stock of the Month
T&C*
Strengths vs Risks of Forge Auto International Ltd
Know the pros & cons
Strengths
Integrated manufacturing operations with diversified product portfolio.- Long-standing relationship.
- Experienced Promoters and senior management team.
- Track record of healthy financial performance.
Risks
- The company depends on a limited number of customers for its revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength.
- The company does not have agreements/commitment on part of its customers to purchase or place orders with the company, also the company does not have any price agreement with its customers. If the company customers select some other vendors /competitors for their requirement, it may have adverse effect on its business.
- The company depends on a few suppliers for the supply of steel, its primary raw material. Further, the company does not have definitive supply agreements with its suppliers for the supply of steel. If the company suppliers fails to fulfil its requirement, it may have adverse effect on its business.
- The company has taken loans and any inability to comply with repayment and other covenants can adversely affect its business, reputation and financial condition.
- Its business is dependent on the performance of certain other industries which the company is serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact its business and financial condition.
- Its production process requires uninterrupted power and fuel supply and any disruption/shortage of power or fuel sources could affect its product quality or increase the company production costs and adversely affect its business, and operations.
- The company has substantial working capital requirements and may requires additional capital and financing in the future and its operations could be curtailed if the company is unable to obtain the required additional capital and financing when needed.
- The company has been recently formed by conversion of the erstwhile Partnership firm into the company, thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
- Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
- Failures to obtain or maintain pre-qualifications from customers or loss of its pre-qualified status from our existing customers could adversely impact the company's business.
- If the company fails to compete effectively with its competitors it may impact adversely the company's business, financial positions and result of operations.
- The company is subject to strict design, quality and delivery requirements and any failures to comply with these design, quality and delivery standards may lead to cancellation of existing and future orders and could negatively impact its reputation and our business and results of operations and future prospects.
- The company derives certain portion of its revenues from exports and are subject to risk of international trade.
- Its business relies heavily on the company manufacturing facility, and this dependence will continue. Its manufacturing process involves certain risks. Any slowdown or shutdown in operations, including strikes, work stoppages, or increased wage demands by employees, could disrupt its operations. Such disruptions could negatively impact the company's business, financial condition, and operational results.
- The company is dependent on third party transportation providers for the delivery of its raw materials, components and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them may have an adverse effect on its business, financial condition, results of operations and prospects.
- The company requires many approvals, licenses, permits for running its business. Any failures for obtaining/renewal or retain such licenses in timely manner may adversely affect its operations/ business.
- Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on its business and financial condition.
- The company is exposed to foreign currency fluctuation risks, which may affect its results of operations.
- Under-utilization of its manufacturing capacities may have an adverse effect on the company's business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.
- Materialization of any contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
- Its may be subject to risks associated with product liability claims. In case any product liability claim getting materialized due to product defect, its may be subject to additional cost or loss of future purchase orders from customers which may affect the company's business and results of operations.
- The company is subject to counterfeit, cloned and pass-off products, which may reduce its sales and harm the reputation of the company brands.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- The company does not have trademark registration for its corporate logo. If the company is unable to register its corporate logo, its may not be able to protect or enforce the company rights to own or use its corporate logo which could have an adverse effect on its business and competitive position.
- Some of the plant and machinery used in its manufacturing have been taken on lease. If the company is unable to renew these leases for the said machinery on suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
- Loans availed by the Company has been secured on personal guarantees of its directors. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its directors.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company does not make any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- The company have in the past received certain incentive/schemes/benefits pursuant to the industry and location of its manufacturing facility. Any change or cancellation of these benefits/schemes may adversely affect its business operations, profitability and financial condition.
- Its manufacturing activities require deployment of labour and depend on availability of skilled labour. In case of unavailability of such skilled labour, its business operations could be affected.
- The company is dependent on its promoters and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect the company's business, results of operations, financial condition and cash flows.
- Its Group Company and entities are engaged in the similar line of business as of the Company. There are no non-compete agreements between the Company and such entities. The company cannot assure that its Promoters will not favour the interests of such entities over its interest or that the said entities will not expand which may increase its competition and may adversely affect business operations and financial condition of the Company.
- Any unsecured loans drawn by it may be recalled by the lenders at any time, which may adversely affect its business, financial condition, results of operation and prospects.
- The Company has issued Equity Shares in the last 12 months at a price which may be lower than the Issue Price.
- Its funding requirements and proposed deployment of the Net Proceeds of the Issue have not been appraised by any bank or any financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations and financial condition.
- The company has encountered challenges in meeting the designated timelines for filing statutory returns, which may subject it to penalty under the relevant laws.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Industry information included in this Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
- The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue price of the Equity Share in the proposed IPO.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by the company.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
Forge Auto International Ltd Peer Comparison
Understand the company’s industry standing
Forge Auto International Ltd
Balu Forge Industries Ltd
M M Forgings Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
180.1172
559.8558
1563.0661
EPS-Basis
10.21
9.89
55.94
EPS-Diluted
10.21
9.74
55.94
NAV Per Share
---
---
---
P/E-Basic EPS
---
81.87
10.34
P/E-Diluted EPS
---
---
---
RONW(%)
32.14
16.94
17.11
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Forge Auto International Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
IPO reads
Stay updated with the latest IPO developments
December 9, 2024 | 5 min read
11 IPOs This Week: ₹18,482 Crores in Focus – GMP, SWOT, and All You Need to Know!
December 2, 2024 | 5 min read
Upcoming IPOs in December 2024: A Packed Month for Investors
November 25, 2024 | 5 min read
SME IPO Rush: 6 Issues Worth ₹410 Cr. Know Key Details Here!
October 25, 2024 | 5 min read
Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!
October 22, 2024 | 5 min read
Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!
October 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why
September 6, 2024 | 5 min read
Bajaj Housing Finance IPO: All You Need to KnowOctober 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why
August 26, 2024 | 5 min read
Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue LaunchMore on IPOs
Navigate your way to other IPO resources
Latest videos on IPOs
IPO highlights & details!
FAQs on IPO
Get answers to all your questions here!
The IPO opens on 26 Sept 2024 & closes on 30 Sept 2024.
Forge Auto International Limited was originally formed as a Partnership Firm in the name and style of 'M/s Auto International' pursuant to Partnership Deed dated April 19, 2001. Later, the Firm was converted into a Private Company with the name Forge Auto International Private Limited' pursuant to a fresh Certificate of Incorporation dated April 25, 2023 issued by the Registrar of Companies, Chandigarh, Punjab. The Company subsequently converted into a Public Limited Company with the name Forge Auto International Limited' and a Fresh Certificate of Incorporation dated June 1, 2024 was issued by the Registrar of Companies, Central Processing Centre, Manesar, Gurgaon, Haryana.
Company is an engineering company engaged into forging and manufacturing of complex and safety critical, forged and precision machined components such as big ring, small ring, big ball stud, gear blank with broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc.
The Company started the business as a partnership firm in year 2001, to make its presence in forging sector. The manufacturing facility of the company is installed with the machines like medium frequency induction heating equipment, CNCs, VMCs (vertical milling centres), hydraulic surface grinder with all accessories, HMI screw press, shot blasting machine, Electric Screw Presses of 1000 MT and 1600 MT, lathe machine, continuous heat treatment furnace with ISO thermal annealing, normalising, quenching and tempering, pillar drilling machine / circular saw machine, Spectrometer and PMI, Ultrasonic washing machine, MPI equipment, rolling machine, 6 Drop Forge Hammers ranging from 1MT to 2.5MT, Broaching (both Horizontal and Vertical), Laser Marking Machines, Coining Presses along with testing equipments like Magna Flux Crack Detection Machines, Standard Room (with CMM, Contour Tracers, Roughness Tester, Height Gauge and other testing instruments), Design & Engineering (with Solid Works, Solid Edge, NX Cam, Q Form Simulation Software and 3D Printer) and utility equipments like forklift, EOT crane, transformer and panels capable of undertaking the forging and machining activities.
In 2021, the Company ventured into the manufacturing of hydraulic components, castor wheel components, industrial goods and other sectors to cater to the growing demand in the forging and machining sector in the India and outside India.
The Company is planning the Fresh Issue of 28,80,000 Equity Shares by way of Initial Public Offer.
Forge Auto International Ltd IPO will close on 30 Sept 2024.
- Integrated manufacturing operations with diversified product portfolio.
- Long-standing relationship.
- Experienced Promoters and senior management team.
- Track record of healthy financial performance.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Pramod Gupta | 3692000 | 45.92 | 3692000 | 33.81 |
| 2 | Rajan Mittal | 3362000 | 41.82 | 3362000 | 30.79 |
- The company depends on a limited number of customers for its revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength.
- The company does not have agreements/commitment on part of its customers to purchase or place orders with the company, also the company does not have any price agreement with its customers. If the company customers select some other vendors /competitors for their requirement, it may have adverse effect on its business.
- The company depends on a few suppliers for the supply of steel, its primary raw material. Further, the company does not have definitive supply agreements with its suppliers for the supply of steel. If the company suppliers fails to fulfil its requirement, it may have adverse effect on its business.
- The company has taken loans and any inability to comply with repayment and other covenants can adversely affect its business, reputation and financial condition.
- Its business is dependent on the performance of certain other industries which the company is serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact its business and financial condition.
- Its production process requires uninterrupted power and fuel supply and any disruption/shortage of power or fuel sources could affect its product quality or increase the company production costs and adversely affect its business, and operations.
- The company has substantial working capital requirements and may requires additional capital and financing in the future and its operations could be curtailed if the company is unable to obtain the required additional capital and financing when needed.
- The company has been recently formed by conversion of the erstwhile Partnership firm into the company, thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
- Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
- Failures to obtain or maintain pre-qualifications from customers or loss of its pre-qualified status from our existing customers could adversely impact the company's business.
- If the company fails to compete effectively with its competitors it may impact adversely the company's business, financial positions and result of operations.
- The company is subject to strict design, quality and delivery requirements and any failures to comply with these design, quality and delivery standards may lead to cancellation of existing and future orders and could negatively impact its reputation and our business and results of operations and future prospects.
- The company derives certain portion of its revenues from exports and are subject to risk of international trade.
- Its business relies heavily on the company manufacturing facility, and this dependence will continue. Its manufacturing process involves certain risks. Any slowdown or shutdown in operations, including strikes, work stoppages, or increased wage demands by employees, could disrupt its operations. Such disruptions could negatively impact the company's business, financial condition, and operational results.
- The company is dependent on third party transportation providers for the delivery of its raw materials, components and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them may have an adverse effect on its business, financial condition, results of operations and prospects.
- The company requires many approvals, licenses, permits for running its business. Any failures for obtaining/renewal or retain such licenses in timely manner may adversely affect its operations/ business.
- Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on its business and financial condition.
- The company is exposed to foreign currency fluctuation risks, which may affect its results of operations.
- Under-utilization of its manufacturing capacities may have an adverse effect on the company's business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.
- Materialization of any contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
- Its may be subject to risks associated with product liability claims. In case any product liability claim getting materialized due to product defect, its may be subject to additional cost or loss of future purchase orders from customers which may affect the company's business and results of operations.
- The company is subject to counterfeit, cloned and pass-off products, which may reduce its sales and harm the reputation of the company brands.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- The company does not have trademark registration for its corporate logo. If the company is unable to register its corporate logo, its may not be able to protect or enforce the company rights to own or use its corporate logo which could have an adverse effect on its business and competitive position.
- Some of the plant and machinery used in its manufacturing have been taken on lease. If the company is unable to renew these leases for the said machinery on suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
- Loans availed by the Company has been secured on personal guarantees of its directors. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its directors.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company does not make any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- The company have in the past received certain incentive/schemes/benefits pursuant to the industry and location of its manufacturing facility. Any change or cancellation of these benefits/schemes may adversely affect its business operations, profitability and financial condition.
- Its manufacturing activities require deployment of labour and depend on availability of skilled labour. In case of unavailability of such skilled labour, its business operations could be affected.
- The company is dependent on its promoters and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect the company's business, results of operations, financial condition and cash flows.
- Its Group Company and entities are engaged in the similar line of business as of the Company. There are no non-compete agreements between the Company and such entities. The company cannot assure that its Promoters will not favour the interests of such entities over its interest or that the said entities will not expand which may increase its competition and may adversely affect business operations and financial condition of the Company.
- Any unsecured loans drawn by it may be recalled by the lenders at any time, which may adversely affect its business, financial condition, results of operation and prospects.
- The Company has issued Equity Shares in the last 12 months at a price which may be lower than the Issue Price.
- Its funding requirements and proposed deployment of the Net Proceeds of the Issue have not been appraised by any bank or any financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations and financial condition.
- The company has encountered challenges in meeting the designated timelines for filing statutory returns, which may subject it to penalty under the relevant laws.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Industry information included in this Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
- The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue price of the Equity Share in the proposed IPO.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by the company.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
The Issue type of Forge Auto International Ltd is Book Building - SME.
The minimum application for shares of Forge Auto International Ltd is 1200.
The total shares issue of Forge Auto International Ltd is 2880000.
Initial public offer of upto 28,80,000 equity shares of face value of
Rs. 10/- each (the "Equity Shares") of Forge Auto International Limited ("The Company" or "The Issuer") at an issue price of Rs. 108 per equity share (including share premium of Rs. 98 per equity share) for cash, aggregating up to Rs. 31.10 crores ("Public Issue") out of which 1,46,400 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating Rs. 1.58 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 27,33,600 equity shares of face value of Rs. 10 each, at an issue price of Rs. 108 per equity share for cash, aggregating upto Rs. 29.52 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.37% and 25.03 % respectively of the post-issue paid-up equity share capital of the company.