AMIC Forging Limited IPO (AMIC Forging IPO)

The AMIC Forging IPO presents a book-built issue valued at Rs 34.80 crores, comprising solely of fresh shares totaling 27.62 lakh.

Scheduled to open for subscription on November 29, 2023, and closing on December 1, 2023, the allotment for this IPO is anticipated to be finalized by Wednesday, December 6, 2023. It is slated to list on BSE SME, with the tentative listing date fixed for Monday, December 11, 2023.

The IPO’s price band is set between Rs. 121 to Rs. 126 per share, with a minimum lot size for application set at 1000 shares. Retail investors are required to invest a minimum of Rs. 126,000, while High Net Worth Individuals (HNIs) are mandated to invest a minimum of 2 lots (2,000 shares), amounting to Rs. 252,000.

Gretex Corporate Services Limited is the appointed book running lead manager for the AMIC Forging IPO, with Bigshare Services Pvt Ltd serving as the registrar for the issue. Gretex Share Broking has been designated as the market maker for this IPO.

For detailed insights and comprehensive information, prospective investors are encouraged to refer to the AMIC Forging IPO RHP (Red Herring Prospectus).

The details for the AMIC Forging IPO are as follows:

Information	Details
IPO Date	November 29, 2023 to December 1, 2023
Face Value	₹10 per share
Price Band	₹121 to ₹126 per share
Lot Size	1000 Shares
Total Issue Size	2,762,000 shares (aggregating up to ₹34.80 Cr)
Fresh Issue	2,762,000 shares (aggregating up to ₹34.80 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE SME
Share holding pre issue	7,726,410
Share holding post issue	10,488,410
Market Maker portion	139,000 shares

These details provide an overview of the AMIC Forging IPO, including the issue size, pricing, lot size, listing exchange, and the pre and post-issue shareholding. The IPO is set to be a book-built issue, and the listing will occur on BSE SME.

The key performance indicators (KPIs) for the AMIC Forging Limited IPO

The AMIC Forging IPO reveals robust Key Performance Indicators (KPIs), indicating promising prospects for potential investors. With a market capitalization of Rs. 132.15 Cr and a P/E ratio of 1.01, the company showcases a strong position in the market.

The post P/E ratio stands at 9.18, suggesting significant growth potential and a positive trajectory post-IPO. Notably, the Return on Equity (ROE) and Return on Capital Employed (ROCE) are impressive at 71.25% and 55.78% respectively, underscoring efficient utilization of resources and profitability.

A Debt/Equity ratio of 0.26 signifies a balanced capital structure, minimizing financial risk and ensuring stability. The Earnings Per Share (EPS) of Rs. 12.83 highlights the company’s profitability per outstanding share, reflecting a healthy financial performance.

Moreover, the Return on Net Worth (RoNW) stands at a substantial 49.40%, indicating the company’s ability to generate profits relative to its net worth, which is an encouraging sign for prospective investors.

AMIC Forging Company Profile

AMIC Forging Limited: Precision Manufacturing Expertise and Growth Trajectory

Established in 2007 as Kali Mata Forging Private Limited, AMIC Forging Limited has emerged as a prominent manufacturer of precision machined components catering to diverse industrial sectors. The company specializes in producing a wide array of precision-engineered products including Rounds, Shafts, Blanks, Gear Couplings, Hubs, Flanges, and other engineering spares, adhering to stringent international standards such as AISI, BS, IS, DIN, and more.

AMIC Forging caters to an extensive range of industries including Heavy Engineering, Steel, Oil & Gas, Petrochemicals, Refineries, Power Generation (Thermal, Nuclear, and Hydro), Cement, Sugar, and related sectors. Utilizing carbon steel, alloy steel, stainless steel, Nickel, and Tools Alloys, the company ensures the fabrication of high-quality components meeting diverse industrial needs.

The manufacturing facilities at AMIC Forging comprise a state-of-the-art forging unit equipped with a 6 M/ton capacity Electro Hydraulic Hammer and a 1 M/ton capacity Pneumatic Hammer, supported by advanced Manipulators and a range of efficient cranes and furnaces. Moreover, the company boasts a sophisticated Heat Treatment Plant featuring automated furnaces with precise temperature control and quenching arrangements. Complementing these, a well-equipped machine shop further facilitates the manufacturing process.

Recent financial records indicate a significant growth trajectory for AMIC Forging, with revenue from operations reaching Rs. 2,954.57 Lacs for the period ended June 30, 2023, showcasing substantial expansion compared to previous fiscal years, reflecting the company’s commitment to excellence and consistent growth in its operations.

AMIC Forging’s dedication to precision engineering, adherence to global standards, and its commitment to technological advancement position it as a promising entity in the manufacturing sector, poised for continued success and market leadership.

Grey Market Premium (GMP) AMIC Forging IPO: Day-wise GMP Trend Analysis

The day-wise analysis of the Grey Market Premium (GMP) trend for the AMIC Forging IPO provides a snapshot of the market sentiment and projected listing prices.

GMP Trend (as of Latest Updates):

27-11-2023: Rs. 0, indicating no change in GMP. The estimated listing price remains stable at Rs. 126, aligning with the IPO price.

26-11-2023: GMP continues at Rs. 0, reflecting steady market conditions with an estimated listing price of Rs. 126.

25-11-2023: GMP remains unchanged at Rs. 0, signifying consistency in market valuation, projecting a listing price of Rs. 126.

24-11-2023: Similar to previous days, the GMP stands at Rs. 0, indicating a consistent estimated listing price of Rs. 126.

23-11-2023: GMP remains steady at Rs. 0, projecting a listing price in alignment with the IPO price at Rs. 126.

The consistent GMP at Rs. 0 throughout the observed period indicates stable market sentiment with no change in the premium over the IPO price. The estimated listing price remains constant at Rs. 126, signifying an equilibrium between demand and expected valuation in the grey market.

IPO Grey Market Premium (GMP)

The IPO Grey Market Premium (GMP) for AMIC Forging SME IPO provides a glimpse into the anticipated behavior of the IPO on its listing day. The GMP represents the unofficial price at which the IPO is traded in the grey market before its official listing, offering insights into potential profitability or discount.

A positive GMP implies that the IPO is likely to debut at a premium, potentially indicating a profitable scenario for early investors. Conversely, a negative GMP suggests the IPO might list at a discount, implying a less favorable situation for investors on the listing day.

However, it’s crucial to recognize that IPO GMP is not regulated and can be highly volatile. Relying solely on GMP for investment decisions can be risky. It’s imperative to assess various factors beyond the GMP, including the company’s fundamentals, market conditions, industry outlook, and financial performance, before making an investment decision.

AMIC Forging IPO: Tentative Timeline and Schedule

The much-anticipated AMIC Forging IPO is set to follow a structured timeline, offering investors a clear schedule for participation and engagement.

IPO Opening: Wednesday, November 29, 2023

IPO Closing: Friday, December 1, 2023

Basis of Allotment: Wednesday, December 6, 2023

Initiation of Refunds: Thursday, December 7, 2023

Credit of Shares to Demat: Friday, December 8, 2023

Listing Date: Monday, December 11, 2023

Cut-off time for UPI mandate confirmation: 5 PM on December 1, 2023

This structured timeline offers investors a clear window to participate in the IPO, ensuring a defined period for subscription and processing of shares. The Basis of Allotment on December 6, 2023, marks the crucial phase where share allotments are finalized, followed by the initiation of refunds on December 7, 2023.

Investors can expect the credit of shares to their Demat accounts by December 8, 2023, paving the way for the much-anticipated listing date on December 11, 2023. Additionally, it’s imperative to note the cut-off time for UPI mandate confirmation, set at 5 PM on December 1, 2023, ensuring a streamlined process for all participants.

This timeline provides a structured framework for investors and stakeholders to engage with the AMIC Forging IPO, allowing for seamless participation and anticipation of the company’s listing in the market on December 11, 2023.

AMIC Forging IPO Lot Size and Investment Criteria

Investors eyeing participation in the AMIC Forging IPO must consider the lot size and investment parameters set forth for retail and High Net Worth Individual (HNI) categories.

Lot Size and Investment Range:

Retail Investors:

Minimum Lot: 1 lot consisting of 1000 shares, amounting to Rs. 126,000.

Maximum Lot: 1 lot comprising 1000 shares, totaling Rs. 126,000.

High Net Worth Individuals (HNI):

Minimum Lot: 2 lots comprising 2000 shares, totaling Rs. 252,000.

This structure allows retail investors to bid for a minimum of 1000 shares, with flexibility in their investment amount within the range of Rs. 126,000. Similarly, HNIs are required to bid for a minimum of 2000 shares, totaling Rs. 252,000.

AMIC Forging Limited Financial Information

Period Ended	30 Jun 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	6,367.84	6,107.99	3,163.87	1,622.07
Revenue	2,979.32	11,683.01	7,138.82	2,643.37
Profit After Tax	359.94	980.01	86.59	56.27
Net Worth	2,338.43	1,983.75	767.28	680.69
Reserves and Surplus	2,252.58	1,897.90	696.21	609.62
Total Borrowing	287.37	385.17	1,071.32	436.50

Financial Highlights (Restated Consolidated):

Revenue Surge: The company witnessed a substantial revenue surge, marking a 63.65% increase between March 31, 2023, and March 31, 2022. The revenue escalated from Rs. 7,138.82 Lakhs to Rs. 11,683.01 Lakhs, highlighting robust growth in business operations.

Profit After Tax (PAT) Growth: Notably, the Profit After Tax witnessed an exceptional rise of 1031.78% during the same period, soaring from Rs. 86.59 Lakhs to Rs. 980.01 Lakhs. This extraordinary increase emphasizes the company’s improved profitability and operational efficiency.

Asset Expansion: The company’s assets displayed a consistent upward trajectory, culminating in an increase from Rs. 3,163.87 Lakhs on March 31, 2022, to Rs. 6,107.99 Lakhs on March 31, 2023, indicating significant asset growth and enhanced resource allocation.

Financial Position Strengthening: AMIC Forging’s financial position strengthened notably, with the Net Worth escalating from Rs. 767.28 Lakhs on March 31, 2022, to Rs. 1,983.75 Lakhs on March 31, 2023. The Reserves and Surplus also exhibited substantial growth, underlining the company’s accumulated earnings and financial stability.

Borrowing Dynamics: Total Borrowings decreased from Rs. 1,071.32 Lakhs on March 31, 2022, to Rs. 385.17 Lakhs on March 31, 2023, showcasing a significant reduction in debt burden.

Objectives of the AMIC Forging IPO Proceeds

The utilization of the net proceeds from the AMIC Forging IPO is designated toward key developmental aspects vital for the company’s growth and operational expansion. The intended objectives include:

1. Setting up of Manufacturing Facility: A significant portion of the funds raised through the IPO will be allocated toward establishing a new manufacturing facility. This strategic initiative aims to enhance production capabilities, potentially increasing the company’s overall output and expanding its operational footprint.

2. Working Capital Requirements: A portion of the IPO proceeds is earmarked to fulfill the company’s working capital needs. This allocation is crucial for sustaining day-to-day operations, ensuring smooth business continuity, and meeting short-term financial obligations efficiently.

3. General Corporate Purposes: The remainder of the net proceeds will be utilized for general corporate purposes, which might encompass various operational expenses, potential future expansions, research and development endeavors, marketing initiatives, and other activities that contribute to the overall growth and development of the company.

By channelling the funds raised through the IPO into these specific objectives, AMIC Forging aims to fortify its infrastructure, bolster operational capabilities, and reinforce its position within the market. This strategic allocation of funds is geared toward facilitating sustained growth, operational efficiency, and value creation for the company and its stakeholders.