AMIC FORGING Ltd. IPO - Review, Valuation, Opening Date & GMP

AMIC FORGING LIMITED - Complete Overview

Amic Forging Private Limited, established on June 19, 2007, is a Non-government company that boasts significant expertise in the production of diverse forging components. Committed to adhering to international standards such as AISI, BS, IS, DIN, etc., the company manufactures a range of components, including Rounds, Shafts, Blanks, and complete finished engineering spare parts. These spare parts, which include Gear couplings, Hubs, Rounds, Flanges, and various engineering spares, are meticulously crafted to meet the specific requirements of individual customers.

The company's manufacturing facilities are well-equipped, featuring a forging unit with a 6-metric tonne capacity Electro Hydraulic Hammer and a 1 Metric tonne capacity Pneumatic Hammer. Each hammer is supported by a Manipulator and operates alongside 3 Overhead Cranes, Jib Cranes, and 3 oil-fired furnaces (Temperature controlled) with all necessary accessories.

Additionally, Amic Forging Private Limited houses a futuristic Heat Treatment Plant equipped with an oil bogie hearth automatically controlled furnace, a four-point recording arrangement, and a temperature graph indicator/recorder. The Heat Treatment Plant also includes water and oil quenching arrangements. 

 

What does the company do?

AMIC Forging is a company that specializes in manufacturing forged components for a variety of industries. These components are precision-machined and tailored to meet both customer specifications and international standards. The industries they serve include Heavy Engineering, Steel, Oil and Gas, Petrochemicals, Chemicals, Refineries, Thermal Power, Nuclear Power, Hydro Power, Cement, Sugar, and related sectors.

AMIC Forging uses different materials in its manufacturing process, including carbon steel, alloy steel, stainless steel, Nickel, and Tools Alloys. This enables them to create a wide range of products to cater to the specific needs of different industries. In summary, the company's focus is on precision, adherence to international standards, and customization to provide high-quality forged components for various industrial applications.

 

 

AMIC FORGING LIMITED Limited IPO Overview

AMIC FORGING LIMITED  date is slated to be open for subscription from November 29, 2023, to December 1, 2023. This BSE SME IPO follows a Book-Built Issue type IPO.

 The AMIC FORGING LIMITED IPO price is fixed at Rs. 121 to Rs. 126  per share. The upcoming BSE SME IPO will be listed on 11 December 2023.

 The total issue size of this IPO amounts to Rs. 34.80 CR. Within this total issue, 35% are issued to retail investors.

AMIC FORGING LIMITED Timetable (Tentative)

 

AMIC FORGING LIMITED IPO Details

IPO opening & closing date	29 November to 1 December 2023
Face value	Rs. 10  per share
Issue Price	Rs. 121 to Rs. 126 per share
Lot Size	Rs. 121 to Rs.126Shares
Price of 1 lot	Rs. 126,000
Total Issue Size	27,62,000 Shares (aggregating up to Rs. 34.80 Cr)
Fresh issue	27,62,000 Shares (aggregating up to Rs. 34.80 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Private Limited

 

AMIC FORGING LIMITED Lot Details

Applications	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1000
Maximum Lot Investment (Retail)	1 lot	1000
Minimum Lot Investment (HNI)	2 lot	2,000

 

 

AMIC FORGING LIMITED Reservation

QIB Shares Offered	Not more than 50.00%
Retail Shares Offered	Not less than 35.00%
HNI Shares Offered	Not less than 15.00%

 

Company Financial

(Amount in Lakhs)

Period	Jun 30, FY 23	FY 23	FY 22
Total Assets	6,367.84	6,107.99	3,163.87
Total Revenue	2,979.32	11,683.01	7,138.82
PAT	359.94	980.01	86.59
Net worth	2,338.43	1,983.75	767.28
Reserve & Surplus	2,252.58	1,897.90	696.21
Total Borrowings	287.37	385.17	1,071.32

 

Revenue by Operations

(Amount in Lakhs)

Particulars	30 Jun, FY 23	FY 23	FY 22
Revenue from operations	2,954.57	11,585.41	7,111.97
Other Operating Income	24.75	97.60	26.86
Total Revenue from operations	2,979.32	11,683.01	7,138.82

 

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• General Corporate Purposes.

• Setting up of Manufacturing Facility.

• Working Capital Requirements.

 

Promoters and Management of AMIC FORGING LIMITED

1. Mr. Girdhari Lal Chamaria

2. Ms. Manju Chamaria

3. Ms. Rashmi Chamaria

Pre-issue Promoter Shareholding	78.38%
Post-issue Promoter Shareholding	57.74%

 

MIC FORGING LIMITED Lead Managers

•  Gretex Corporate Services Limited

 

Peers of AMIC FORGING LIMITED

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Amic Forging Limited	10.00	9.82	12.83
Maiden Forgings Limited	10.00	10.42	9.21
Ramkrishna Forgings Limited	2.00	139.21	4.81

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP and RHP. AMIC FORGING LIMITED IPO is fixed at ₹121 to ₹ 126 per share, with an EPS of ₹12.83. Based on the issue price the company's P/E ratio is calculated at 9.82.

 

Dividend Policy

 Their ability to distribute dividends in the future is contingent on their future earnings, financial status, cash flows, working capital needs, capital expenditure, and adherence to restrictive covenants in their financing agreements.

IPO's Strengths

• High product quality sets us apart in the market.

• Diversified product range across different industries.

• Growing demand for our manufactured products.

• Competitive advantage through quality and bidding success.

• Strong marketing and distribution network.

• Promoters bring valuable experience to the table.

 

IPO's Weaknesses

• Intense competition within the domestic market.

• Challenges posed by the high and fluctuating costs of inputs.

• Lower productivity attributed to semi-skilled and unskilled labor.

• Changes in government policies affecting our operations.

 

IPO GMP Today

The latest  GMP of AMIC FORGING Ltd.  IPO is RS. 30

 

Conclusion

In summary, AMIC Forging Limited is gearing up for its IPO, offering shares at ₹121 to ₹126 each. The company excels in precision forging for diverse industries. Its financials show growth, but challenges like competition and policy changes exist. The IPO's strengths include product quality, a diverse range, and a strong network.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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