Forge Auto International IPO Details: Listing Performance and Insights

Key Highlights of Forge Auto International's IPO

Shares of Forge Auto International made a muted start on the bourses on its stock market debut on October 4 after listing at Rs 113, a premium of 5 percent over the issue price of Rs 108 per share on the NSE SME platform.

The listing gains have missed grey market estimates where shares were trading at a premium of 13 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

Investment Demand

• The Rs 31-crore public offer is a fresh issue of 28.8 lakh shares.
• The issue was subscribed slightly over 49 times with retail investors picking 62 times the portion reserved for them.
• Non-institutional investors lapped up 58.5 times the allotment, while QIBs mopped up 20 times their portion.

Company Overview

Incorporated in 2001, Forge Auto International specializes in forging and manufacturing complex, safety-critical, and precision-machined components for both the automotive industry (automobiles, tractors, railways) and non-auto sectors (agricultural parts, hydraulic parts, and striking tools). The company serves domestic and global original equipment manufacturers (OEMs) with its products utilized across various industries.

Use of Funds

The net proceeds from the IPO will be used to meet the company's working capital requirements, repay specific borrowings, and cover general corporate purposes.

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