Overview:
AMIC Forging Limited, previously known as Kali Mata Forging Private Limited, is set to make waves in the financial market with its Initial Public Offering (IPO) worth Rs 34.80 crores. The IPO, which opened on November 29, 2023, and closed on December 1, 2023, is a book-built issue comprising a fresh issue of 27.62 lakh shares. Let’s delve into the key details and prospects that this IPO brings to the table.
Issue Details:
The AMIC Forging IPO is a fresh issue, featuring a total issue size of 2,762,000 shares with a face value of ₹10 per share. The price band is set at ₹121 to ₹126 per share, making it an enticing prospect for potential investors. The minimum lot size for an application is 1000 shares, requiring a minimum investment of ₹126,000 for retail investors. Notably, the IPO is expected to list on BSE SME, with the tentative listing date set for Monday, December 11, 2023.
Reservation Breakdown:
AMIC Forging IPO offers 2,762,000 shares, with allocations to various investor categories. The shares are divided among Anchor Investors, Market Makers, QIBs, NIIs (HNIs), and Retail investors. This strategic distribution ensures a balanced and diversified ownership structure.
| Investor Category | Shares Offered |
|---|---|
| Anchor Investors | 786,000 (28.46%) |
| Market Makers | 139,000 (5.03%) |
| QIBs | 524,000 (18.97%) |
| NIIs (HNIs) | 394,000 (14.27%) |
| Retail Investors | 919,000 (33.27%) |
Anchor Investor Contribution:
Ahead of the IPO, AMIC Forging successfully raised Rs 9.90 crores from anchor investors. The anchor investor bid date was November 28, 2023, and the shares offered amounted to 786,000. The lock-in period for 50% of the shares extends until January 18, 2024, with the remaining shares subject to a lock-in period until April 11, 2024.
Timeline Overview:
The IPO timeline provides a structured schedule from the opening date to the anticipated listing date:
- IPO Open Date: Wednesday, November 29, 2023
- IPO Close Date: 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
AMIC Forging Limited Today IPO GMP
| Price Range | Lot Size | Min. Investment | Bid Dates | Listing Date | GMP Yesterday 28-Nov-2023 | GMP Today 29-Nov-2023 | Expected Share Price | Expected Profit per Lot | Buy Y/N |
|---|---|---|---|---|---|---|---|---|---|
| ₹121-₹126 | 1000 | ₹121, 000 | 29th to 1st Dec 2023 | 11th Dec 2023 | ₹30 | ₹50 | ₹176 | ₹50000 | Y |
| Date | GMP |
|---|---|
| Today | ₹50 |
| 30 November | ₹30 |
| 29 November | ₹30 |
| 28 November | ₹12 |
| 27 November | ₹12 |
| 26 November | ₹- |
| 25 November | ₹- |
| 23 November | ₹- |
Lot Size and Investment Options:
Investors can bid for a minimum of 1000 shares and in multiples thereof. The table below illustrates the minimum and maximum investment options for both retail investors and High Net Worth Individuals (HNIs).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | ₹126,000 |
| Retail (Max) | 1 | 1000 | ₹126,000 |
| HNI (Min) | 2 | 2000 | ₹252,000 |
Promoter Holding Details:
The promoters of AMIC Forging Limited include Mr. Girdhari Lal Chamaria, Mr. Anshul Chamaria, Ms. Manju Chamaria, and Ms. Rashmi Chamaria. The pre-issue shareholding stands at 78.38%, and post-issue, it adjusts to 57.74%, reflecting a healthy promoter holding.
Company Overview:
Incorporated in 2007, AMIC Forging Limited specializes in manufacturing precision-machined components, catering to diverse industries. The product range includes Rounds, Shafts, Blanks, Gear coupling, Hub, Round, Flange, and other engineering spares, manufactured in materials such as carbon steel, alloy steel, stainless steel, Nickel, and Tools Alloys.
The company’s manufacturing facilities boast advanced equipment, including a forging unit with a 6 M/ton capacity Electro Hydraulic Hammer, a Heat Treatment Plant, and a well-equipped machine shop. This infrastructure positions AMIC Forging as a reliable player in the forging industry.
Financial Performance:
AMIC Forging Limited has demonstrated robust financial performance, with a revenue increase of 63.65% and a staggering 1031.78% rise in Profit After Tax (PAT) between the financial years ending March 31, 2023, and March 31, 2022.
| Period Ended | Revenue (₹ Lacs) | PAT (₹ Lacs) | Net Worth (₹ Cr.) |
|---|---|---|---|
| 30 Jun 2023 | 2,979.32 | 359.94 | 2,338.43 |
| 31 Mar 2023 | 11,683.01 | 980.01 | 1,983.75 |
| 31 Mar 2022 | 7,138.82 | 86.59 | 767.28 |
Key Performance Indicators (KPIs):
AMIC Forging IPO Market Cap stands at Rs 132.15 Cr, with a P/E (x) of 1.01, showcasing promising valuation metrics.
| KPI | Values |
|---|---|
| P/E (x) | 1.01 |
| Post P/E (x) | 9.18 |
| Market Cap | ₹132.15 Cr |
| ROE | 71.25% |
| ROCE | 55.78% |
Objects of the Issue:
The net proceeds from the IPO are earmarked for the following purposes:
- Setting up of Manufacturing facility.
- Fulfilling Working Capital Requirements.
- General Corporate Purposes.
Expert Review:
Dilip Davda’s review raises pertinent points, emphasizing the competitive landscape and the sustainability of profit margins. Investors are urged to consider the medium to long-term rewards carefully.
Subscription Status:
As of December 1, 2023, the AMIC Forging IPO has garnered significant interest, being oversubscribed 38.43 times. The retail category exhibits robust subscription at 54.28 times, emphasizing the strong market response.
In conclusion, the AMIC Forging Limited IPO presents a compelling opportunity for investors looking to participate in the forging industry’s growth story. With a solid financial track record, strategic reservation breakdown, and positive subscription status, the IPO beckons those seeking potential returns in the medium to long term.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should conduct thorough research and consult with financial experts before making investment decisions.
