Advance Technoforge Ltd IPO

Status: Closed

Overview

IPO date

27 Jul 2026 to 29 Jul 2026

Face value

₹ 10 per share

Price

₹ 95 to ₹95 per share

Issue Size

2,529,600 shares
(aggregating up to ₹ 24.03 Cr)

Allotment Date

30 Jul 2026

Listing at

NSE

Issue type

Fixed Price - SME

Sector

Castings, Forgings & Fastners

Unlock Stock of the Month

T&C*

Strengths vs Risks of Advance Technoforge Ltd

Know the pros & cons

Strengths

Strategic Location of Manufacturing Facilities.
Experienced Promoters and Management Team.
Established a customer base for Products and Byproducts.
Strong existing client relationship.
A successful and proven track record.
Offering Flexible Operation for meeting specific customers requirement.
Strong technical and execution capabilities to maintain quality.

Risks

The company relys heavily on a group of customers for a significant portion of its operational revenue. The loss of any one or more of these key customers could have a substantial negative impact on the company business, operations, and financial stability.
The company relys on a limited number of suppliers for the steel required as its primary raw material. Additionally, the company does not have fixed supply agreements with these suppliers. If they fails to meet its needs, it could negatively impact the company business.
The company is exposed to foreign currency exchange rate fluctuations, which may harm its results of operations, impact the company cash flows and cause its financial results to fluctuate.
Its indebtedness, including various conditions and restrictions imposed on it by the company financing agreements, could adversely affect its ability to react to changes in the company business, and its may be limited in the company ability to use debt to fund future capital needs.
Any inability on its part to comply with prescribed technical specifications and standards of quality in connection with the company products could adversely impact its operations and profitability.
Obsolescence, destruction, breakdowns of its plant or equipment or failures to repair or maintain the same may adversely affect the company business, cash flows, financial condition and results of operations.
In the normal course of business, the company requires various approvals, NOCs, licenses, registrations, and permits. Some of these need to be transferred from Advance TechnoForge Private Limited to Advance TechnoForge Limited following the company's name change. Any failures or delay in completing these transfers in a timely manner may negatively impact its operations.
If the company is unable to compete effectively with its competitors, it could have a negative impact on our business, financial position, and operational results.
The company relys on third-party transportation providers for the delivery of raw materials, components, and finished products. As a result, rising transportation costs or the unavailability of transportation services could negatively impact its business, financial condition, operational results, and future prospects.
Its business is inherently working capital-intensive, requiring significant working capital dues to the time lag between procuring raw materials, producing finished goods, and collecting payments from customers.
The company has certain statutory dues and delays in filing returns and payment of statutory dues may result in financial penalties
The company is requireds to meet stringent design, quality, and delivery standards, and failures to comply with these could result in the cancellation of both current and future orders, potentially damaging its reputation, business, operational results, and future prospects.
Its business relies heavily on the efficient functioning of the company manufacturing units, making it vulnerable to various risks within the manufacturing process.
Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
The lack of long-term agreements with its customers presents a significant risk to the company business. Instead of securing contracts that ensure sustained partnerships, our current customer arrangements are mostly short-term or cover specific quantities. Its customers are not exclusively bound to it and may opt to stop sourcing from it or seek alternatives beyond their contracted orders.
The shortage or non-availability of power facilities may adversely affect its manufacturing process and have an adverse impact on the company results of operations and financial condition.
The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in its products, which in turn could adversely affect the value of the company brand, and its sales could be diminished if the company are associated with negative publicity.
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, the company business, cash flows, financial condition and results of operations may be adversely affected.
The company is required to comply with certain covenants under its financing agreements. Accordingly, the company is required to obtain NOC from its existing lender IDFC First Bank Ltd. While the company has made the application, its company is yet to receive the lenders NOC.
The company is dependents on its senior management and other key personnel as well as certain intermediaries, and the loss of, or the company inability to attract or retain, such persons could adversely affect its business, results of operations, financial condition, and cash flows.
The company requires various licences and approvals for undertaking its business and if the company fails to obtain, maintain, or renew the company statutory and regulatory licenses, permits and approvals required to operate its business, the company business and results of operations may be adversely affected.
The company derives its revenue from exports and exposure to international trade risks may adversely affect the company export revenues.
The sale of Equity Shares by its Promoters in future may adversely affect the market price of the Equity Shares
The company has in the past entered related party transactions and may continue to do so in the future. There can be no assurance that its could not have achieved more favourable terms if such transactions had been entered into with third parties.
Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances.
Its operations are governed by stringent labor laws in India. Potential events such as strikes, labor unrest, work stoppages, increased wage demands, or other disputes with our employees could negatively impact the company business, financial condition, operational results, and cash flows. These factors pose significant risks to its operations and requires careful management to mitigate potential adverse effects.
The Company's ability to pay dividends in the future will depend on future earnings, financial condition, cash flows, working capital requirements and required or planned capital expenditures and terms of its financing arrangements.
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.
Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
Certain key performance indicators for certain listed industry peers included in this Draft Prospectus have been sourced from public sources and there is no assurance that such financial and other industry informations is complete.
Its logo "Advance Technologies Pvt Ltd" is currently undergoing the trademark registration process. Failures to secure this registration could lead to issues with brand identification and potential confusion, as the logo may not be officially protected under the company name. This could result in brand misidentification, loss of market recognition, and legal disputes regarding the use of its logo.
The company mays require additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all.
Failures in internal control systems could cause operational errors which may have an adverse effect on its reputation, business, results of operations, financial condition and cash flows.
The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depend upon the company future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of its financing arrangements.
The company may face risks related to product liability claims. If a product defect leads to such a claim, its could incur additional costs or lose future orders from customers, which could impact the company business and operational results.
The company is vulnerable to counterfeit, cloned, and imitation products, which can reduce its sales and damage the reputation of the company brands.
The loans taken by its Company are secured by personal guarantees from the company directors. If these guarantees are invoked, it could have an adverse effect on our business, financial condition, operations, cash flow, and future prospects.
The company has had negative operating cash flows in the past which may adversely impact its business
While the company has Insurances, inadequate insurance coverage may expose it to financial liabilities.
Certain discrepancies and errors have been identified in some of its corporate records related to forms submitted to the Registrar of Companies and other requirements under the Companies Act, 2013. Any penalties or actions taken by regulatory authorities in the future for non-compliance could adversely affect the Company's reputation and financial standing.
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 industry information presented in this Draft Prospectus has been obtained from various industry sources. However, the company cannot guarantee that this third-party statistical, financial, and other industry data is complete, reliable, or accurate.
The company has not identified any alternative sources of funding; therefore, any failures or delay in securing the necessary resources, or any shortfall in the proceeds from this Issue, could postpone its implementation schedule.
Any penalties or demands imposed by regulatory authorities in the futures will impact the Company's financial position.
The company may need to issue additional equity, which would dilute existing shareholders' stakes and potentially impact the market price of its Equity Shares. Alternatively, the company might seek additional funding through debt to meet its capital requirements, which could be challenging to secure, especially with any future equity offerings.
After the issue, the Promoters and Promoter Group will retain majority ownership in the Company, enabling them to influence the outcome of matters that requires shareholder approval.
The company has not identified any alternative sources of funding for the objectives of the issue, and the deployment of funds will be solely at our discretion as outlined in the "Objects of the Issue" section.
We faces competition from both domestic and international markets, and its inability to compete effectively could significantly impact the company business and financial performance.
Any futures issuance of equity shares could dilute its ownership, and the sale of equity shares by major shareholders might negatively impact the trading price of the company shares.
The demands of being a publicly listed Company may place a strain on its resources and create additional obligations.
The company relies heavily on a group of customers for a significant portion of its operational revenue. The loss of any one or more of these key customers could have a substantial negative impact on the company's business, operations, and financial stability.
The company relies on a limited number of suppliers for the steel required as its primary raw material. Additionally, the company does not has fixed supply agreements with these suppliers. If they fails to meet its needs, it could negatively impact the company's business. Further, any volatility in the prices of its raw material may affect the Company.
The Company's manufacturing capacity is underutilized and any inability to achieve optimal capacity utilization may adversely affect its business, operations and financial performance.
The company's indebtedness, including various conditions and restrictions imposed on its by the company's financing agreements, could adversely affect its ability to react to changes in the company's business, and its may be limited in the company's ability to raise fresh debt to fund future capital needs.
Any inability on the company's part to comply with prescribed technical specifications and standards of quality in connection with its products could adversely impact the company's operations and profitability.
In the normal course of business, the company requires various approvals, NOCs, licenses, registrations, and permits. Pursuant to the change of name of the Company from Advance Technoforge Private Limited to Advance Technoforge Limited, these approvals, licenses, etc. need to be transferred in the new name of the Company. Any failures or delay in completing these transfers/renewing them in a timely manner may negatively impact its operations.
If the company is unable to compete effectively with its competitors, it could have a negative impact on the company's business, financial position, and operational results.
Failures in internal control systems could cause operational errors which may have an adverse effect on the company's reputation, business, results of operations, financial condition and cash flows.
Bank statements and payment trails relating to a past Rights Issue allotment undertaken on January 22, 2014 are not traceable, which may expose the company to regulatory scrutiny and/or adverse consequences.
The company's business is inherently working capital-intensive, requiring significant working capital due to the time lag between procuring raw materials, producing finished goods, and collecting payments from customers. Its may requires additional capital and financing in the future and operations could be curtailed if the Company is unable to obtain the required additional capital and financing when needed or any inability to manage working capital efficiently or to raise timely and cost-effective financing may adversely affect its business, financial condition, cash flows, and results of operations.
The company derives certain revenue from exports and exposure to international trade risks may adversely affect its export revenues.
Any decline in the Company's Revenue from the Operations or profitability in future may adversely affect its financial condition and results of operations adversely.
The company is exposed to foreign currency exchange rate fluctuations, which may impact its cash flows and the company's financial results.
The company is liable for applicable statutory dues and delays in filing returns and payment of statutory dues may result in financial penalties.
The company is required to meet stringent design, quality, and delivery standards, and failures to comply with these could result in the cancellation of both current and future orders, potentially damaging its reputation, business, operational results, and future prospects.
The Company is yet to place orders for purchase of plant and machinery. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
The company's business relies heavily on the efficient functioning of its manufacturing units, making the company vulnerable to various risks within the manufacturing process. Any such inefficiency can lead to resource wastage, production slowdowns, increased operational costs and adversely impact the company's profitability.
Failures to manage the company's inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.
The lack of long-term agreements with the company's customers presents a significant risk to its business. Instead of securing contracts that ensure sustained partnerships, the company's current customer arrangements is mostly short-term or cover specific quantities. The company's customers is not exclusively bound to its and may opt to stop sourcing from the company or seek alternatives beyond their contracted orders.
The company's unsecured loan agreements is executed on plain paper and the same are not adequately stamped or registered, such documentation could result in financial exposure, litigation risk, reputational impact, and increased compliance costs which may adversely affect the enforceability of such agreements.
The shortage or non-availability of power facilities may adversely affect the company's manufacturing process and have an adverse impact on its results of operations and financial condition.
The company's operations and revenue is concentrated in specific geographic regions i.e., Maharashtra and Gujarat, which exposes its to region-specific risks. Any adverse developments including any policy or infrastructure changes in these areas may adversely affect the company's business and financial performance.
The Company heavily relies on loan facilities provided by HDFC Bank Limited, SIDBI, and Tata Capital to meet its working capital and other funding needs, which exposes the company to repayment, default, and refinancing risks.
The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in the company's products, which in turn could adversely affect the value of its brand, and the company's sales could be diminished if the company is associated with negative publicity.
The company's funding requirements and proposed deployment of the Net Proceeds of the Issue has not been appraised by any bank or any financial institution and if there are any delays or cost overruns, the company's business, cash flows, financial condition and results of operations may be adversely affected.
The Company has previously filed the Draft Prospectus on 27 March 2025, which was then withdrawn. The Draft Prospectus was being refiled and certain changes been made to the Draft Prospectus in comparison to the previously filed version during this period. The prior withdrawal and refied Draft Prospectus may be perceived negatively by potential investors, analysts, and the general public.
The company is dependent on its Promoters, senior management and other key managerial personnel and the loss of, or the company's inability to attract or retain, such persons could adversely affect its business, results of operations, financial condition, and cash flows.
The company's logo Advance and Advance Technoforge Limited are currently undergoing the trademark registration process. Failures to secure this registration could lead to issues with brand identification and potential confusion, as the logo may not be officially protected under its name. This could result in brand misidentification, loss of market recognition, and legal disputes regarding the use of the company's logo.
The company requires various licenses and approvals for undertaking its business and if the company fails to obtain, maintain, or renew the company's statutory and regulatory licenses, permits and approvals required to operates its business, the company's business and results of operations may be adversely affected.
The sale or pledge of Equity Shares of the Company by its Promoters in future may adversely affect the market price of the Equity Shares.
The company has in the past entered related party transactions and may continue to does so in the future. There can be no assurance that its could not have achieved more favourable terms if such transactions has been entered into with third parties.
The company's manufacturing operations is exposed to risks such as workplace accidents, equipment breakdowns, fire, explosion, and other disruptions, which may result in injury, damage to property, or interruption of operations. Any such incident may lead to delays, legal and regulatory liabilities, increased costs, and may adversely affect the company's business, financial condition, and results of operations.
The company's operations is governed by stringent labor laws in India. Potential events such as strikes, labor unrest, work stoppages, increased wages demands, or other disputes with its employees could negatively impact the company's business, financial condition, operational results, and cash flows. These factors pose significant risks to its operations and require careful management to mitigate potential adverse effects.
The Company's ability to pay dividends in the future will depends on its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and terms of the company's financing arrangements which may adversely affect its ability to pay dividends and the trading price of the Equity Shares of the Company.
The average cost of acquisition of Equity Shares by the company's Promoters may be lower than the Issue price of the Equity Share in the proposed IPO.
Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect the company's cash flows, business results of operations and financial condition.
The company may requires additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all. If the company is unable to raise additional funds on favorable terms or at all as and when required, the company's business, results of operations, financial condition and prospects could be adversely affected.
The company is vulnerable to counterfeit, cloned, and imitation products, which can reduce its sales and damage the reputation of the company's brands.
The loans taken by the Company is secured by personal guarantees from its directors. If these guarantees are invoked, it could have an adverse effect on the company's business, financial condition, operations, cash flow, and future prospects.
The company relies on third-party transportation providers for the delivery of raw materials, components, and finished products. As a result, rising transportation costs or the unavailability of transportation services could negatively impact its business, financial condition, operational results, and future prospects.
While the company has availed various Insurance Policies to cover the risks posed to its business, any inadequate insurance coverage in future or any rejection of insurance claim, may expose its to financial liabilities.
There has been few instances of delays by the Company in filing statutory forms with the Registrar of Companies, which may expose its to regulatory action. If the Regulatory Authorities impose any monetary penalties on the company or take any punitive actions against the Company in relation to the same, its business, financial condition and results of operations could be adversely affected.
Any unsecured loans drawn by the company may be recalled by the lenders at any time, which may adversely affect its business, financial condition, results of operation and prospects.
After the completion of the Issue, the Promoter and Promoter Group will retain majority ownership in the Company, enabling them to influence the outcome of matters that requires shareholder approval. These decisions may conflict with the interests of minority shareholders thus negatively impacting investor perception and share value.
The company faces competition from both domestic and international markets, and its inability to compete effectively could significantly impact the company's business and financial performance.
The demands of being a publicly listed Company may place a strain on the company's resources and create additional obligations.
The company's unsecured loan agreements is executed on plain paper and the same are not adequately stamped or registered, such documentation could result in financial exposure, litigation risk, reputational impact, and increased compliance costs which may adversely affect the enforceability of such agreements.
Delayed payments to MSME suppliers may expose the Company to regulatory, financial and reputational risks which may adversely affect the company's business and profitability.
If the company is unable to manage its growth effectively and further expand into new markets, the company's business and financial performance could be adversely affected.
Any non-availability of skilled, semi-skilled and un-skilled manpower and/or increased employee costs could negatively affect the company's ability to operates efficiently and result in disruptions to its manufacturing operations.

Advance Technoforge Ltd Peer Comparison

Understand the company’s industry standing

Advance Technoforge Ltd

Tirupati Forge Limited

Forge Auto International Limited

Face Value

Standalone / Consolidated

Standalone

Total Income Rs. Cr.

50.0482

162.4785

226.1328

EPS-Basis

---

EPS-Diluted

6.24

0.51

9.91

NAV Per Share

20.59

10.53

63.23

P/E-Basic EPS

15.22

93.56

9.39

P/E-Diluted EPS

---

RONW(%)

30.33

5.24

Latest NAV Period

---

Latest NAV

---

Journey for how to check the allotment status

How to check the allotment status of Advance Technoforge Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 27 Jul 2026 & closes on 29 Jul 2026.

Advance Technoforge Limited was formed as a private limited company at Rajkot, Gujarat in the name and style of Advance Technoforge Private Limited,' dated August 05, 2013 issued by the Registrar of Companies, Ahmedabad. Thereafter, the status was converted into a public limited and the name of the Company was changed to Advance Technoforge Limited' vide fresh Certificate dated 6 September 2024 issued to Company by the RoC. Company mainly deals in Closed Die Steel Forging, Upset Forging, Ring Rolling Forging In Rough & Precision Machined Condition. It serve in automobile and industrial valves and pumps industries. They are specialised in manufacturer of structural metal products, automotive parts, Agriculture parts, material lifting equipment parts and general engineering parts, etc. The second thing is, Company has wide experience in producing forged and precision machined parts with various additional processes like Powder coating, CED Coating, Magni Coating, Platting, Polishing Passivation, Ultrasonic Cleaning, Galvanizing and Serving to International & Domestic market. The Company has production facility carried out in 3 lines: Line 1: Huta Zygmunt MPM 3000, Oil furnace with capacity of 1000kg/hr, Trimming Press 350 MT. Line 2: Belt Drop Hammer 2.0 MT, Electric Billet Heater 250 KW, Trimming Press of 100 MT. Line 3: Belt Drop Hammer 1.0 MT, Electric Billet Heater 180 KW, Trimming Press 100 MT. The overall forging capacity has a production of 6000 MT/year. Latest Manufacturing facilities like Huta hammer, Induction Furnace are available with the Company at their manufacturing unit of forging and manufacturing products. Company has manufacturing facilities in Padvala Industrial Areas at Rajkot, Gujarat India, and the entire infrastructure is available in this industrial area. The Company came up with the IPO by allotting a fresh issue of 25,29,600 equity shares of Rs 10 each and raised funds of Rs 24.03 crores on July 29, 2026.

Advance Technoforge Ltd IPO will close on 29 Jul 2026.

Strategic Location of Manufacturing Facilities.
Experienced Promoters and Management Team.
Established a customer base for Products and Byproducts.
Strong existing client relationship.
A successful and proven track record.
Offering Flexible Operation for meeting specific customers requirement.
Strong technical and execution capabilities to maintain quality.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Nilesh Shambhubhai Moliya	520000	8	520000	5.76
2	Pradipbhai Bhikhabhai Vora	1056250	16.25	1056250	11.7
3	Daxaben Nileshbhai Moliya	1462500	22.5	1462500	16.2
4	Kajal Alpeshbhai Moliya	1316250	20.25	1316250	14.58
5	Shraddhaben Pradipbhai Vora	325000	5	325000	3.6
6	Alpesh Shambhubhai Moliya	520000	8	520000	5.76
7	Naynaben Vijaykumar Vora	325000	5	325000	3.6
8	Vijaybhai Bhikhabhai Vora	325000	5	325000	3.6
9	Rohitbhai Bhimjibhai Bhuva	195000	3	195000	2.16
10	Tushar Damjibhai Kalkani	455000	7	455000	5.04

The company relys heavily on a group of customers for a significant portion of its operational revenue. The loss of any one or more of these key customers could have a substantial negative impact on the company business, operations, and financial stability.
The company relys on a limited number of suppliers for the steel required as its primary raw material. Additionally, the company does not have fixed supply agreements with these suppliers. If they fails to meet its needs, it could negatively impact the company business.
The company is exposed to foreign currency exchange rate fluctuations, which may harm its results of operations, impact the company cash flows and cause its financial results to fluctuate.
Its indebtedness, including various conditions and restrictions imposed on it by the company financing agreements, could adversely affect its ability to react to changes in the company business, and its may be limited in the company ability to use debt to fund future capital needs.
Any inability on its part to comply with prescribed technical specifications and standards of quality in connection with the company products could adversely impact its operations and profitability.
Obsolescence, destruction, breakdowns of its plant or equipment or failures to repair or maintain the same may adversely affect the company business, cash flows, financial condition and results of operations.
In the normal course of business, the company requires various approvals, NOCs, licenses, registrations, and permits. Some of these need to be transferred from Advance TechnoForge Private Limited to Advance TechnoForge Limited following the company's name change. Any failures or delay in completing these transfers in a timely manner may negatively impact its operations.
If the company is unable to compete effectively with its competitors, it could have a negative impact on our business, financial position, and operational results.
The company relys on third-party transportation providers for the delivery of raw materials, components, and finished products. As a result, rising transportation costs or the unavailability of transportation services could negatively impact its business, financial condition, operational results, and future prospects.
Its business is inherently working capital-intensive, requiring significant working capital dues to the time lag between procuring raw materials, producing finished goods, and collecting payments from customers.
The company has certain statutory dues and delays in filing returns and payment of statutory dues may result in financial penalties
The company is requireds to meet stringent design, quality, and delivery standards, and failures to comply with these could result in the cancellation of both current and future orders, potentially damaging its reputation, business, operational results, and future prospects.
Its business relies heavily on the efficient functioning of the company manufacturing units, making it vulnerable to various risks within the manufacturing process.
Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
The lack of long-term agreements with its customers presents a significant risk to the company business. Instead of securing contracts that ensure sustained partnerships, our current customer arrangements are mostly short-term or cover specific quantities. Its customers are not exclusively bound to it and may opt to stop sourcing from it or seek alternatives beyond their contracted orders.
The shortage or non-availability of power facilities may adversely affect its manufacturing process and have an adverse impact on the company results of operations and financial condition.
The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in its products, which in turn could adversely affect the value of the company brand, and its sales could be diminished if the company are associated with negative publicity.
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, the company business, cash flows, financial condition and results of operations may be adversely affected.
The company is required to comply with certain covenants under its financing agreements. Accordingly, the company is required to obtain NOC from its existing lender IDFC First Bank Ltd. While the company has made the application, its company is yet to receive the lenders NOC.
The company is dependents on its senior management and other key personnel as well as certain intermediaries, and the loss of, or the company inability to attract or retain, such persons could adversely affect its business, results of operations, financial condition, and cash flows.
The company requires various licences and approvals for undertaking its business and if the company fails to obtain, maintain, or renew the company statutory and regulatory licenses, permits and approvals required to operate its business, the company business and results of operations may be adversely affected.
The company derives its revenue from exports and exposure to international trade risks may adversely affect the company export revenues.
The sale of Equity Shares by its Promoters in future may adversely affect the market price of the Equity Shares
The company has in the past entered related party transactions and may continue to do so in the future. There can be no assurance that its could not have achieved more favourable terms if such transactions had been entered into with third parties.
Activities involving its manufacturing process can be dangerous and can cause injury to people or property in certain circumstances.
Its operations are governed by stringent labor laws in India. Potential events such as strikes, labor unrest, work stoppages, increased wage demands, or other disputes with our employees could negatively impact the company business, financial condition, operational results, and cash flows. These factors pose significant risks to its operations and requires careful management to mitigate potential adverse effects.
The Company's ability to pay dividends in the future will depend on future earnings, financial condition, cash flows, working capital requirements and required or planned capital expenditures and terms of its financing arrangements.
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.
Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
Certain key performance indicators for certain listed industry peers included in this Draft Prospectus have been sourced from public sources and there is no assurance that such financial and other industry informations is complete.
Its logo "Advance Technologies Pvt Ltd" is currently undergoing the trademark registration process. Failures to secure this registration could lead to issues with brand identification and potential confusion, as the logo may not be officially protected under the company name. This could result in brand misidentification, loss of market recognition, and legal disputes regarding the use of its logo.
The company mays require additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all.
Failures in internal control systems could cause operational errors which may have an adverse effect on its reputation, business, results of operations, financial condition and cash flows.
The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depend upon the company future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of its financing arrangements.
The company may face risks related to product liability claims. If a product defect leads to such a claim, its could incur additional costs or lose future orders from customers, which could impact the company business and operational results.
The company is vulnerable to counterfeit, cloned, and imitation products, which can reduce its sales and damage the reputation of the company brands.
The loans taken by its Company are secured by personal guarantees from the company directors. If these guarantees are invoked, it could have an adverse effect on our business, financial condition, operations, cash flow, and future prospects.
The company has had negative operating cash flows in the past which may adversely impact its business
While the company has Insurances, inadequate insurance coverage may expose it to financial liabilities.
Certain discrepancies and errors have been identified in some of its corporate records related to forms submitted to the Registrar of Companies and other requirements under the Companies Act, 2013. Any penalties or actions taken by regulatory authorities in the future for non-compliance could adversely affect the Company's reputation and financial standing.
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 industry information presented in this Draft Prospectus has been obtained from various industry sources. However, the company cannot guarantee that this third-party statistical, financial, and other industry data is complete, reliable, or accurate.
The company has not identified any alternative sources of funding; therefore, any failures or delay in securing the necessary resources, or any shortfall in the proceeds from this Issue, could postpone its implementation schedule.
Any penalties or demands imposed by regulatory authorities in the futures will impact the Company's financial position.
The company may need to issue additional equity, which would dilute existing shareholders' stakes and potentially impact the market price of its Equity Shares. Alternatively, the company might seek additional funding through debt to meet its capital requirements, which could be challenging to secure, especially with any future equity offerings.
After the issue, the Promoters and Promoter Group will retain majority ownership in the Company, enabling them to influence the outcome of matters that requires shareholder approval.
The company has not identified any alternative sources of funding for the objectives of the issue, and the deployment of funds will be solely at our discretion as outlined in the "Objects of the Issue" section.
We faces competition from both domestic and international markets, and its inability to compete effectively could significantly impact the company business and financial performance.
Any futures issuance of equity shares could dilute its ownership, and the sale of equity shares by major shareholders might negatively impact the trading price of the company shares.
The demands of being a publicly listed Company may place a strain on its resources and create additional obligations.
The company relies heavily on a group of customers for a significant portion of its operational revenue. The loss of any one or more of these key customers could have a substantial negative impact on the company's business, operations, and financial stability.
The company relies on a limited number of suppliers for the steel required as its primary raw material. Additionally, the company does not has fixed supply agreements with these suppliers. If they fails to meet its needs, it could negatively impact the company's business. Further, any volatility in the prices of its raw material may affect the Company.
The Company's manufacturing capacity is underutilized and any inability to achieve optimal capacity utilization may adversely affect its business, operations and financial performance.
The company's indebtedness, including various conditions and restrictions imposed on its by the company's financing agreements, could adversely affect its ability to react to changes in the company's business, and its may be limited in the company's ability to raise fresh debt to fund future capital needs.
Any inability on the company's part to comply with prescribed technical specifications and standards of quality in connection with its products could adversely impact the company's operations and profitability.
In the normal course of business, the company requires various approvals, NOCs, licenses, registrations, and permits. Pursuant to the change of name of the Company from Advance Technoforge Private Limited to Advance Technoforge Limited, these approvals, licenses, etc. need to be transferred in the new name of the Company. Any failures or delay in completing these transfers/renewing them in a timely manner may negatively impact its operations.
If the company is unable to compete effectively with its competitors, it could have a negative impact on the company's business, financial position, and operational results.
Failures in internal control systems could cause operational errors which may have an adverse effect on the company's reputation, business, results of operations, financial condition and cash flows.
Bank statements and payment trails relating to a past Rights Issue allotment undertaken on January 22, 2014 are not traceable, which may expose the company to regulatory scrutiny and/or adverse consequences.
The company's business is inherently working capital-intensive, requiring significant working capital due to the time lag between procuring raw materials, producing finished goods, and collecting payments from customers. Its may requires additional capital and financing in the future and operations could be curtailed if the Company is unable to obtain the required additional capital and financing when needed or any inability to manage working capital efficiently or to raise timely and cost-effective financing may adversely affect its business, financial condition, cash flows, and results of operations.
The company derives certain revenue from exports and exposure to international trade risks may adversely affect its export revenues.
Any decline in the Company's Revenue from the Operations or profitability in future may adversely affect its financial condition and results of operations adversely.
The company is exposed to foreign currency exchange rate fluctuations, which may impact its cash flows and the company's financial results.
The company is liable for applicable statutory dues and delays in filing returns and payment of statutory dues may result in financial penalties.
The company is required to meet stringent design, quality, and delivery standards, and failures to comply with these could result in the cancellation of both current and future orders, potentially damaging its reputation, business, operational results, and future prospects.
The Company is yet to place orders for purchase of plant and machinery. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
The company's business relies heavily on the efficient functioning of its manufacturing units, making the company vulnerable to various risks within the manufacturing process. Any such inefficiency can lead to resource wastage, production slowdowns, increased operational costs and adversely impact the company's profitability.
Failures to manage the company's inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.
The lack of long-term agreements with the company's customers presents a significant risk to its business. Instead of securing contracts that ensure sustained partnerships, the company's current customer arrangements is mostly short-term or cover specific quantities. The company's customers is not exclusively bound to its and may opt to stop sourcing from the company or seek alternatives beyond their contracted orders.
The company's unsecured loan agreements is executed on plain paper and the same are not adequately stamped or registered, such documentation could result in financial exposure, litigation risk, reputational impact, and increased compliance costs which may adversely affect the enforceability of such agreements.
The shortage or non-availability of power facilities may adversely affect the company's manufacturing process and have an adverse impact on its results of operations and financial condition.
The company's operations and revenue is concentrated in specific geographic regions i.e., Maharashtra and Gujarat, which exposes its to region-specific risks. Any adverse developments including any policy or infrastructure changes in these areas may adversely affect the company's business and financial performance.
The Company heavily relies on loan facilities provided by HDFC Bank Limited, SIDBI, and Tata Capital to meet its working capital and other funding needs, which exposes the company to repayment, default, and refinancing risks.
The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in the company's products, which in turn could adversely affect the value of its brand, and the company's sales could be diminished if the company is associated with negative publicity.
The company's funding requirements and proposed deployment of the Net Proceeds of the Issue has not been appraised by any bank or any financial institution and if there are any delays or cost overruns, the company's business, cash flows, financial condition and results of operations may be adversely affected.
The Company has previously filed the Draft Prospectus on 27 March 2025, which was then withdrawn. The Draft Prospectus was being refiled and certain changes been made to the Draft Prospectus in comparison to the previously filed version during this period. The prior withdrawal and refied Draft Prospectus may be perceived negatively by potential investors, analysts, and the general public.
The company is dependent on its Promoters, senior management and other key managerial personnel and the loss of, or the company's inability to attract or retain, such persons could adversely affect its business, results of operations, financial condition, and cash flows.
The company's logo Advance and Advance Technoforge Limited are currently undergoing the trademark registration process. Failures to secure this registration could lead to issues with brand identification and potential confusion, as the logo may not be officially protected under its name. This could result in brand misidentification, loss of market recognition, and legal disputes regarding the use of the company's logo.
The company requires various licenses and approvals for undertaking its business and if the company fails to obtain, maintain, or renew the company's statutory and regulatory licenses, permits and approvals required to operates its business, the company's business and results of operations may be adversely affected.
The sale or pledge of Equity Shares of the Company by its Promoters in future may adversely affect the market price of the Equity Shares.
The company has in the past entered related party transactions and may continue to does so in the future. There can be no assurance that its could not have achieved more favourable terms if such transactions has been entered into with third parties.
The company's manufacturing operations is exposed to risks such as workplace accidents, equipment breakdowns, fire, explosion, and other disruptions, which may result in injury, damage to property, or interruption of operations. Any such incident may lead to delays, legal and regulatory liabilities, increased costs, and may adversely affect the company's business, financial condition, and results of operations.
The company's operations is governed by stringent labor laws in India. Potential events such as strikes, labor unrest, work stoppages, increased wages demands, or other disputes with its employees could negatively impact the company's business, financial condition, operational results, and cash flows. These factors pose significant risks to its operations and require careful management to mitigate potential adverse effects.
The Company's ability to pay dividends in the future will depends on its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and terms of the company's financing arrangements which may adversely affect its ability to pay dividends and the trading price of the Equity Shares of the Company.
The average cost of acquisition of Equity Shares by the company's Promoters may be lower than the Issue price of the Equity Share in the proposed IPO.
Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect the company's cash flows, business results of operations and financial condition.
The company may requires additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all. If the company is unable to raise additional funds on favorable terms or at all as and when required, the company's business, results of operations, financial condition and prospects could be adversely affected.
The company is vulnerable to counterfeit, cloned, and imitation products, which can reduce its sales and damage the reputation of the company's brands.
The loans taken by the Company is secured by personal guarantees from its directors. If these guarantees are invoked, it could have an adverse effect on the company's business, financial condition, operations, cash flow, and future prospects.
The company relies on third-party transportation providers for the delivery of raw materials, components, and finished products. As a result, rising transportation costs or the unavailability of transportation services could negatively impact its business, financial condition, operational results, and future prospects.
While the company has availed various Insurance Policies to cover the risks posed to its business, any inadequate insurance coverage in future or any rejection of insurance claim, may expose its to financial liabilities.
There has been few instances of delays by the Company in filing statutory forms with the Registrar of Companies, which may expose its to regulatory action. If the Regulatory Authorities impose any monetary penalties on the company or take any punitive actions against the Company in relation to the same, its business, financial condition and results of operations could be adversely affected.
Any unsecured loans drawn by the company may be recalled by the lenders at any time, which may adversely affect its business, financial condition, results of operation and prospects.
After the completion of the Issue, the Promoter and Promoter Group will retain majority ownership in the Company, enabling them to influence the outcome of matters that requires shareholder approval. These decisions may conflict with the interests of minority shareholders thus negatively impacting investor perception and share value.
The company faces competition from both domestic and international markets, and its inability to compete effectively could significantly impact the company's business and financial performance.
The demands of being a publicly listed Company may place a strain on the company's resources and create additional obligations.
The company's unsecured loan agreements is executed on plain paper and the same are not adequately stamped or registered, such documentation could result in financial exposure, litigation risk, reputational impact, and increased compliance costs which may adversely affect the enforceability of such agreements.
Delayed payments to MSME suppliers may expose the Company to regulatory, financial and reputational risks which may adversely affect the company's business and profitability.
If the company is unable to manage its growth effectively and further expand into new markets, the company's business and financial performance could be adversely affected.
Any non-availability of skilled, semi-skilled and un-skilled manpower and/or increased employee costs could negatively affect the company's ability to operates efficiently and result in disruptions to its manufacturing operations.

The Issue type of Advance Technoforge Ltd is Fixed Price - SME.

The minimum application for shares of Advance Technoforge Ltd is 2400.

The total shares issue of Advance Technoforge Ltd is 2529600.

Initial public issue of 25,29,600 equity shares of face value of Rs. 10 each ("Equity Shares") of Advance Technoforge Limited (the "Company" or the "Issuer") for cash at a price of Rs. 95.00 per equity share including a share premium of Rs. 85.00 per equity share (the "Issue Price") aggregating to Rs. 24.03 Crores ("the Issue") of which 1,29,600 equity shares aggregating to Rs. 1.23 Crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e., Net issue of 24,00,000 equity shares aggregating to Rs. 22.80 Crores (the"Net Issue"). The issue and the net issue will constitute 28.01% and 26.58% respectively of the post issue paid-up equity share capital of the company. The Issue Price is Rs. 95.00 per equity share and the face value of the equity shares is Rs. 10 each and the issue price is 9.5 times of the face value. Minimum application size of 2,400 equity shares and in multiples of 1,200 equity shares thereafter.

Advance Technoforge Ltd IPO

Objectives of Advance Technoforge Ltd IPO