📞Call us
+91 80629 16290
Metalic Technoforge Ltd IPO
Status: Closed
Overview
IPO date
21 Jul 2026 to 23 Jul 2026
Face value
₹ 10 per share
Price
₹ 72 to ₹77 per share
Issue Size
6,488,000 shares
(aggregating up to ₹ 49.96 Cr)
(aggregating up to ₹ 49.96 Cr)
Allotment Date
24 Jul 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Castings, Forgings & Fastners
Unlock Stock of the Month
T&C*
Strengths vs Risks of Metalic Technoforge Ltd
Know the pros & cons
Strengths
- Our Manufacturing facility.
- Diversified product portfolio.
- Quality Assurance and Control.
- Our Order Book.
- Long-Standing Relationship with our customers.
Risks
- The company is subject to various laws and extensive government regulations and if its fails to obtain, maintain or renew the company's statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and fire safety laws and other regulations, the company's business financial condition, results of operations and cash flows may be adversely affected.
- The company's Promoter, Rupapara Jay Rameshbhai, was formerly associated with a partnership firm against which Goods and Services Tax proceedings are pending. Although he has retired from the partnership and has no present role in its affairs, any adverse developments in such proceedings may requires his participation in regulatory proceedings and may adversely affect his reputation and, consequently, the company's business, financial condition, results of operations and prospects.
- A significant portion of the company's domestic revenue is derived from customers located in Gujarat, Maharashtra and Uttar Pradesh which accounted for 62.45%, 59.22%%, and 78.70% of its revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. Any adverse developments in these regions may materially and adversely affect the company's business, financial condition, results of operations and cash flows.
- The company's export its products to various countries and the company's revenue from customers outside India represented 35.40%, 37.72%, and 18.57%, of the total revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. The company's international operations expose its to risks relating to foreign market conditions, geographic concentration, regulatory requirements and foreign exchange fluctuations which could adversely affect its business, financial condition and results of operations.
- The company has certain outstanding litigation against its, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
- The company's operations is dependent on its existing machinery, equipment and technology for critical business functions, and any failures to maintain, repair, upgrade or adapt to technological changes may adversely affect its business and results of operations.
- The company depends on a limited number of suppliers for its raw materials and the absence of long-term contractual arrangements with such suppliers exposes the company to supply, quality and pricing risks that could adversely affect its business and financial performance.
- The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.
- The company depends on a limited number of key customers for a substantial portion of its revenue and the absence of long-term contractual arrangements with such customers exposes its to customer concentration, demand volatility and credit risks that could adversely affect the company's business and financial performance.
- The company's business is dependent and will continue to depends on its manufacturing facility, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company's manufacturing operations or strikes, work stoppages or increased wages demands by its employees that could interfere with the company's operations could have an adverse effect on its business, financial condition and results of operations.
- The company derives significant portion of its revenue from Gears and Transmission Components. The company's profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize the company's resources to enhance and provide its products that efficiently satisfy and meet the company's client's specific requirements in a timely manner. Any failures on its part to does so, may have an impact on the reputation of the company's business, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.
- The Company has filed a compounding application in respect of a past non-compliance under Section 185 of the Companies Act, 2013, and any adverse outcome may affect the Company and its officers.
- If the company does not continually enhance its existing products, develop and market new products, the company's product portfolio maybe come obsolete and its may not achieve broad market acceptance and brand recognition. The success of the components manufactured by its depends on the success of the end product of the company's customer. Reduction in sales of the products of its customer, or defects in the company's customers' products which may be attributable to its, may adversely affect the company's business, financial condition, results of operations and prospects.
- The company's sales and profitability could be harmed if its is unable to maintain or improve the company's brand image and effective marketing initiatives. Further any negative publicity with respect to the company's products could adversely affect its brand, business, financial condition and results of operations.
- The company's Order Book may not be representative of its future results. Orders included in the company's Book may be delayed, cancelled or not fully paid for by its customers, which could materially harm the company's cash flow position, revenues and earnings.
- The Company has a current ratio below 1.0 times in financial year 2023, indicating relatively lower short-term liquidity during such period, and any recurrence of such position may adversely affect the company's ability to meet short-term obligations.
- The company is dependent on the performance of certain industries in which its customers operates and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work its undertake or the price at which the company's offer its products.
- The company has not yet placed orders in relation to the capital expenditure requirements of the Company towards setting up of the proposed Manufacturing Unit IV and upgradation of existing units at manufacturing facility in Rajkot, Gujarat. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machineries or complete the civil and related works etc. in a timely manner, or at all, the same may result in time and cost over-runs.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by a public financial institution or a scheduled commercial bank and its management will have broad discretion over utilization of the Net Proceeds.
- The company is subject to risks relating to compliance with the Micro, Small and Medium Enterprises Development Act, 2006 ("MSME Act"), and any delay in payments to MSME suppliers may adversely affect its financial condition and results of operations.
- The company relies on third-party vendors and job workers for certain manufacturing processes, and the absence of formal longterm agreements with such parties could adversely affect its business, financial condition and results of operations.
- The company's business is working capital intensive, and any inability to effectively manage or fund its working capital requirements could adversely affect the company's business, financial condition, results of operations and cash flows.
- Inventories and trade receivables form a major part of the company's current assets. Failures to manage its inventory and trade receivables could have an adverse effect on the company's sales, profitability, cash flow and liquidity, goodwill, business, financial condition and results of operations.
- The company could be subject to product liability claims, refunds and recalls or return of products, which may have a material adverse impact, in which case its business and revenues, and ultimately the company's reputation, could be negatively affected.
- There may be potential conflicts of interest between the Company and its Promoters, members of the company's Promoter Group or Group entities in which its Promoters and Directors have an interest, which could adversely affect the company's business and operations.
- The Company has negative cash flows in the past years, details of which is given below. Sustained negative cash flow could impact its growth and business.
- There are certain inadvertent errors noticed in some of the company's corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- The company is subject to strict quality requirements, and the acceptability of its products is largely dependent upon the company's quality controls and standards. Any failures to comply with quality standards may adversely affect the company's business prospects and financial performance, including cancellation of existing and future orders.
- The company relies on third-party transportation providers for both procurement of its raw materials and distribution of the company's products. Since its does not has any long-term contractual arrangements with such service providers, any failures by any of the company's transportation providers to deliver its raw materials or the company's products on time, or in good condition, or at all, may adversely affect its business, financial condition and results of operations.
- Certain operational key performance indicators are not maintained in a standardized and comparable manner across periods, which may limit the comparability of the company's operational performance.
- The Company has certain contingent liabilities, the materialization of which could adversely affect its business, financial condition, cash flows and results of operations.
- The Company's manufacturing activities is labour intensive and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.
- Any failures, inadequacy or disruption of the company's information technology systems or its reliance on manual processes could adversely affect the company's business operations, financial condition and results of operations.
- The company's loan agreements with lender has several restrictive covenants and certain unconditional rights in favour of the lender, which could influence its ability to expand, in turn affecting the company's business and results of operations.
- Unsecured loans taken by the Company can be recalled by the lenders at any time and are currently on favourable terms which may not continue in the future.
- The company's Promoters has provided personal guarantees to certain loan facilities availed by its, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.
- The company's registered office and its manufacturing facility is not owned by the company and is taken on rent/lease basis. If the company is unable to renew existing rental/lease agreements or relocate its operations on commercially reasonable terms, there may be a material adverse effect on the company's business, financial condition, results of operations and cash flows could be adversely affected.
- The company's success largely depends upon the knowledge and experience of its Promoters, Directors, the company's Key Managerial Personnel and Senior Management as well as its ability to attract and retain them. Any loss of the company's Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them could adversely affect the company's business, financial condition and results of operations.
- The company's operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect its business, results of operations, cash flow and financial condition.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- There are certain discrepancies and non-compliances noticed in some of the company's financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
- The company's historical performance is not indicative of its future growth or financial results and the company may not be able to sustain or increase its historical growth rates. The company's inability to effectively manage its current and future growth could disrupt the company's business operations and adversely affect its profitability and financial performance.
- Information relating to historical installed capacity of the company's manufacturing facility included in this Red Herring Prospectus is based on various assumptions and estimates and its future manufacturing operations and capacity utilization may vary. Under-utilization of the company's existing manufacturing facility and an inability to effectively utilize its manufacturing capacities could have an adverse effect on the company's business, future prospects, and future financial performance.
- Employee misconduct including misuse of confidential data and failures to maintain confidentiality of information could harm the company and is difficult to detect and deter.
- Any increase in interest rates would have an adverse effect on the company's results of operations and will expose its Company to interest rate risks.
- The company's insurance coverage may not adequately protect its against certain operating risks inherent in the company's business operations. Any uninsured loss or liability could adversely affect its business, financial condition, results of operations and cash flows.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect the company's growth plans, operations and financial performance.
- The company proposes to repay or prepay of certain outstanding borrowings availed by the Company. However, no assurance can be made that its Company will not requires further funding and that such funding will be available at attractive rates or that by repaying the borrowings, will in fact improve its available funding alternatives.
- Promoters and Directors does not has experience of being a director of a public listed company.
- Any negative publicity or adverse public perception, whether substantiated or not, against the Company could have a material adverse effect on its financial condition, results of operations and business prospects.
- Industry information included in this Red Herring Prospectus has not been commissioned by the Company and has been sourced from third-party reports. There can be no assurance that such statistical, financial and other industry information is complete or accurate.
- Any failures to compete effectively in the highly competitive forged and machined components industry could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- The company's Promoters, Key Managerial Personnel and Senior Management Personnel hold Equity Shares in the Company and are therefore interested in the Company's performance other than remuneration and reimbursement of expenses.
- The average cost of acquisition of Equity Shares held by the company's Promoters could be lower than the Issue Price.
- The company may not be successful in implementing its business strategies. Any failures or delay in implementing the company's business strategies would have a material adverse effect on its business and results of operations.
- The Company's ability to pay dividends in the future will depends on the Company's future results of operations, financial condition, cash flows and working capital and capital expenditure requirements.
- The company's Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Growing environmental, social, and governance (ESG) compliance requirements and sustainability expectations from stakeholders may necessitate significant additional investments and operational changes which could materially and adversely affect the company's business, financial condition, results of operations.
- Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company's financial condition. Its failures to successfully adopt IFRS may have an adverse effect on the price of the company's Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.
- Subsequent to the listing of the Equity Shares, the company may be subject to pre-emptive surveillance measures such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
Metalic Technoforge Ltd Peer Comparison
Understand the company’s industry standing
Metalic Technoforge Ltd
Amic Forging Limited
Tirupati Forge Limited
Face Value
10
10
2
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
---
---
---
EPS-Basis
7.12
26.78
0.51
EPS-Diluted
7.12
26.78
0.51
NAV Per Share
19.1
197.6
10.53
P/E-Basic EPS
---
66.91
135.43
P/E-Diluted EPS
---
---
---
RONW(%)
37
13.31
4.72
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Metalic Technoforge Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
IPO reads
Stay updated with the latest IPO developments
February 27, 2025 | 5 min read
₹50.11 Cr Balaji Phosphates IPO Opens Feb 28. Issue Details and SWOT AnalysisRead More
February 25, 2025 | 5 min read
Tata Capital Board Approves ₹15,000 Cr Plus Mega IPO; Tata Investment Shares Soar 8%Read More
February 18, 2025 | 5 min read
Busy Week Ahead: 2 SME IPOs and 9 Market Listings – Get the Complete Details HereRead More
October 25, 2024 | 5 min read
Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!Read More
October 22, 2024 | 5 min read
Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!Read More
October 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
September 6, 2024 | 5 min read
Bajaj Housing Finance IPO: All You Need to KnowRead MoreOctober 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons WhyRead More
August 26, 2024 | 5 min read
Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue LaunchRead MoreMore on IPOs
Navigate your way to other IPO resources
Latest videos on IPOs
IPO highlights & details!
FAQs on IPO
Get answers to all your questions here!
The IPO opens on 21 Jul 2026 & closes on 23 Jul 2026.
Metalic Technoforge Limited was originally incorporated as 'Metalic Technoforge Private Limited' dated October 04, 2016, with the Central Registration Centre. Subsequently the status of the Company has been converted into a Public limited company subject to shareholders' resolution and the name of the Company is changed to Metalic Technoforge Limited pursuant to fresh certificate issued by the Central Processing Centre dated August 06, 2025.
The Company is engaged in the business of manufacturing of closed die forged and precision machined components catering to a wide range of automotive and non-automotive industries, including farming equipment, construction machinery, hydraulic applications, commercial vehicles, and general engineering industries. It manufacture a variety of products such as gear components, transmission shafts, forged and machined components, hydraulic components, and other general engineering components, which are supplied to customers within India and in overseas market.
The Company operates a manufacturing facility located in Rajkot, Gujarat, comprising four units. Of these, three units are operational and used for the existing business operations, while Unit- IV is presently vacant and proposed to be use for the upcoming capital expansion. The product portfolio comprises a wide range of complex and safety critical forged and precision-machined products, including big rings, small rings, ball studs, gear blanks with broaching, gears, coupling assemblies and other critical components catering to diverse end-use industries.
The Company commenced operations with 1.5MT hammer machine in the manufacturing facility spread across 960 square meter area. Thereafter in 2019, Company expanded the capacity by adding 1 MT hammer, since then it added machinery for forging and CNC processing. Further during the period from 2019 to 2025, it expanded manufacturing units to a total area approximately 5,968.51 square meters (approximately 64,244.53 square feet).
In 2024, it further diversified the product portfolio by commencing the manufacturing of gears and shafts supported by the installation of modern precision gear manufacturing machinery. Presently, the Company works an installed forging and machining capacity of 6,800 metric tons per annum.
Company has filed a Draft Prospectus with SEBI &is planning the IPO which consist a fresh issue of 64,88,000 Equity Shares of Rs 10.
Metalic Technoforge Ltd IPO will close on 23 Jul 2026.
- Our Manufacturing facility.
- Diversified product portfolio.
- Quality Assurance and Control.
- Our Order Book.
- Long-Standing Relationship with our customers.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Gajipara Keyur Dhirajlal | 4674983 | 26.72 | 4674983 | 19.49 |
| 2 | Trambadiya Dhaval Vrajlal | 2210000 | 12.63 | 2210000 | 9.21 |
| 3 | Vadodariya Satish Rameshbhai | 1700000 | 9.72 | 1700000 | 7.09 |
| 4 | Kapadiya Vipul K | 1700000 | 9.72 | 1700000 | 7.09 |
| 5 | Gajipara Ronakkumar Mansukhbha | 2635017 | 15.06 | 2635017 | 10.99 |
| 6 | Rupapara Jay Rameshbhai | 1699983 | 9.72 | 1699983 | 7.09 |
| 7 | Ekta Satish Vadodariya | --- | --- | --- | --- |
| 8 | Rameshbhai Ukabhai Rupapara | 10200 | 0.06 | 10200 | 0.04 |
- The company is subject to various laws and extensive government regulations and if its fails to obtain, maintain or renew the company's statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and fire safety laws and other regulations, the company's business financial condition, results of operations and cash flows may be adversely affected.
- The company's Promoter, Rupapara Jay Rameshbhai, was formerly associated with a partnership firm against which Goods and Services Tax proceedings are pending. Although he has retired from the partnership and has no present role in its affairs, any adverse developments in such proceedings may requires his participation in regulatory proceedings and may adversely affect his reputation and, consequently, the company's business, financial condition, results of operations and prospects.
- A significant portion of the company's domestic revenue is derived from customers located in Gujarat, Maharashtra and Uttar Pradesh which accounted for 62.45%, 59.22%%, and 78.70% of its revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. Any adverse developments in these regions may materially and adversely affect the company's business, financial condition, results of operations and cash flows.
- The company's export its products to various countries and the company's revenue from customers outside India represented 35.40%, 37.72%, and 18.57%, of the total revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. The company's international operations expose its to risks relating to foreign market conditions, geographic concentration, regulatory requirements and foreign exchange fluctuations which could adversely affect its business, financial condition and results of operations.
- The company has certain outstanding litigation against its, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
- The company's operations is dependent on its existing machinery, equipment and technology for critical business functions, and any failures to maintain, repair, upgrade or adapt to technological changes may adversely affect its business and results of operations.
- The company depends on a limited number of suppliers for its raw materials and the absence of long-term contractual arrangements with such suppliers exposes the company to supply, quality and pricing risks that could adversely affect its business and financial performance.
- The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.
- The company depends on a limited number of key customers for a substantial portion of its revenue and the absence of long-term contractual arrangements with such customers exposes its to customer concentration, demand volatility and credit risks that could adversely affect the company's business and financial performance.
- The company's business is dependent and will continue to depends on its manufacturing facility, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company's manufacturing operations or strikes, work stoppages or increased wages demands by its employees that could interfere with the company's operations could have an adverse effect on its business, financial condition and results of operations.
- The company derives significant portion of its revenue from Gears and Transmission Components. The company's profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize the company's resources to enhance and provide its products that efficiently satisfy and meet the company's client's specific requirements in a timely manner. Any failures on its part to does so, may have an impact on the reputation of the company's business, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.
- The Company has filed a compounding application in respect of a past non-compliance under Section 185 of the Companies Act, 2013, and any adverse outcome may affect the Company and its officers.
- If the company does not continually enhance its existing products, develop and market new products, the company's product portfolio maybe come obsolete and its may not achieve broad market acceptance and brand recognition. The success of the components manufactured by its depends on the success of the end product of the company's customer. Reduction in sales of the products of its customer, or defects in the company's customers' products which may be attributable to its, may adversely affect the company's business, financial condition, results of operations and prospects.
- The company's sales and profitability could be harmed if its is unable to maintain or improve the company's brand image and effective marketing initiatives. Further any negative publicity with respect to the company's products could adversely affect its brand, business, financial condition and results of operations.
- The company's Order Book may not be representative of its future results. Orders included in the company's Book may be delayed, cancelled or not fully paid for by its customers, which could materially harm the company's cash flow position, revenues and earnings.
- The Company has a current ratio below 1.0 times in financial year 2023, indicating relatively lower short-term liquidity during such period, and any recurrence of such position may adversely affect the company's ability to meet short-term obligations.
- The company is dependent on the performance of certain industries in which its customers operates and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work its undertake or the price at which the company's offer its products.
- The company has not yet placed orders in relation to the capital expenditure requirements of the Company towards setting up of the proposed Manufacturing Unit IV and upgradation of existing units at manufacturing facility in Rajkot, Gujarat. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machineries or complete the civil and related works etc. in a timely manner, or at all, the same may result in time and cost over-runs.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by a public financial institution or a scheduled commercial bank and its management will have broad discretion over utilization of the Net Proceeds.
- The company is subject to risks relating to compliance with the Micro, Small and Medium Enterprises Development Act, 2006 ("MSME Act"), and any delay in payments to MSME suppliers may adversely affect its financial condition and results of operations.
- The company relies on third-party vendors and job workers for certain manufacturing processes, and the absence of formal longterm agreements with such parties could adversely affect its business, financial condition and results of operations.
- The company's business is working capital intensive, and any inability to effectively manage or fund its working capital requirements could adversely affect the company's business, financial condition, results of operations and cash flows.
- Inventories and trade receivables form a major part of the company's current assets. Failures to manage its inventory and trade receivables could have an adverse effect on the company's sales, profitability, cash flow and liquidity, goodwill, business, financial condition and results of operations.
- The company could be subject to product liability claims, refunds and recalls or return of products, which may have a material adverse impact, in which case its business and revenues, and ultimately the company's reputation, could be negatively affected.
- There may be potential conflicts of interest between the Company and its Promoters, members of the company's Promoter Group or Group entities in which its Promoters and Directors have an interest, which could adversely affect the company's business and operations.
- The Company has negative cash flows in the past years, details of which is given below. Sustained negative cash flow could impact its growth and business.
- There are certain inadvertent errors noticed in some of the company's corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- The company is subject to strict quality requirements, and the acceptability of its products is largely dependent upon the company's quality controls and standards. Any failures to comply with quality standards may adversely affect the company's business prospects and financial performance, including cancellation of existing and future orders.
- The company relies on third-party transportation providers for both procurement of its raw materials and distribution of the company's products. Since its does not has any long-term contractual arrangements with such service providers, any failures by any of the company's transportation providers to deliver its raw materials or the company's products on time, or in good condition, or at all, may adversely affect its business, financial condition and results of operations.
- Certain operational key performance indicators are not maintained in a standardized and comparable manner across periods, which may limit the comparability of the company's operational performance.
- The Company has certain contingent liabilities, the materialization of which could adversely affect its business, financial condition, cash flows and results of operations.
- The Company's manufacturing activities is labour intensive and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.
- Any failures, inadequacy or disruption of the company's information technology systems or its reliance on manual processes could adversely affect the company's business operations, financial condition and results of operations.
- The company's loan agreements with lender has several restrictive covenants and certain unconditional rights in favour of the lender, which could influence its ability to expand, in turn affecting the company's business and results of operations.
- Unsecured loans taken by the Company can be recalled by the lenders at any time and are currently on favourable terms which may not continue in the future.
- The company's Promoters has provided personal guarantees to certain loan facilities availed by its, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.
- The company's registered office and its manufacturing facility is not owned by the company and is taken on rent/lease basis. If the company is unable to renew existing rental/lease agreements or relocate its operations on commercially reasonable terms, there may be a material adverse effect on the company's business, financial condition, results of operations and cash flows could be adversely affected.
- The company's success largely depends upon the knowledge and experience of its Promoters, Directors, the company's Key Managerial Personnel and Senior Management as well as its ability to attract and retain them. Any loss of the company's Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them could adversely affect the company's business, financial condition and results of operations.
- The company's operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect its business, results of operations, cash flow and financial condition.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- There are certain discrepancies and non-compliances noticed in some of the company's financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
- The company's historical performance is not indicative of its future growth or financial results and the company may not be able to sustain or increase its historical growth rates. The company's inability to effectively manage its current and future growth could disrupt the company's business operations and adversely affect its profitability and financial performance.
- Information relating to historical installed capacity of the company's manufacturing facility included in this Red Herring Prospectus is based on various assumptions and estimates and its future manufacturing operations and capacity utilization may vary. Under-utilization of the company's existing manufacturing facility and an inability to effectively utilize its manufacturing capacities could have an adverse effect on the company's business, future prospects, and future financial performance.
- Employee misconduct including misuse of confidential data and failures to maintain confidentiality of information could harm the company and is difficult to detect and deter.
- Any increase in interest rates would have an adverse effect on the company's results of operations and will expose its Company to interest rate risks.
- The company's insurance coverage may not adequately protect its against certain operating risks inherent in the company's business operations. Any uninsured loss or liability could adversely affect its business, financial condition, results of operations and cash flows.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect the company's growth plans, operations and financial performance.
- The company proposes to repay or prepay of certain outstanding borrowings availed by the Company. However, no assurance can be made that its Company will not requires further funding and that such funding will be available at attractive rates or that by repaying the borrowings, will in fact improve its available funding alternatives.
- Promoters and Directors does not has experience of being a director of a public listed company.
- Any negative publicity or adverse public perception, whether substantiated or not, against the Company could have a material adverse effect on its financial condition, results of operations and business prospects.
- Industry information included in this Red Herring Prospectus has not been commissioned by the Company and has been sourced from third-party reports. There can be no assurance that such statistical, financial and other industry information is complete or accurate.
- Any failures to compete effectively in the highly competitive forged and machined components industry could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- The company's Promoters, Key Managerial Personnel and Senior Management Personnel hold Equity Shares in the Company and are therefore interested in the Company's performance other than remuneration and reimbursement of expenses.
- The average cost of acquisition of Equity Shares held by the company's Promoters could be lower than the Issue Price.
- The company may not be successful in implementing its business strategies. Any failures or delay in implementing the company's business strategies would have a material adverse effect on its business and results of operations.
- The Company's ability to pay dividends in the future will depends on the Company's future results of operations, financial condition, cash flows and working capital and capital expenditure requirements.
- The company's Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Growing environmental, social, and governance (ESG) compliance requirements and sustainability expectations from stakeholders may necessitate significant additional investments and operational changes which could materially and adversely affect the company's business, financial condition, results of operations.
- Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company's financial condition. Its failures to successfully adopt IFRS may have an adverse effect on the price of the company's Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.
- Subsequent to the listing of the Equity Shares, the company may be subject to pre-emptive surveillance measures such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
The Issue type of Metalic Technoforge Ltd is Book Building - SME.
The minimum application for shares of Metalic Technoforge Ltd is 3200.
The total shares issue of Metalic Technoforge Ltd is 6488000.
Initial public offer of 64,88,000 equity shares of face value of Rs.10/- each (the "Equity Shares") of Metalic Technoforge Limited ("the Company" or "Metalic" or "the Issuer") at an issue price of Rs. 77 per equity share including a share premium of Rs. 67 per equity share (the "Issue Price") aggregating to Rs. 49.96 Crores ("the Issue"), of which 3,28,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 77 per equity share including a share premium of Rs. 67 per equity share aggregating to Rs. 2.53 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 61,60,000 equity shares of face value of Rs. 10/- each at a price of Rs. 77 per equity share including a share premium of Rs. 67 per equity share aggregating to Rs. 47.43 Crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 27.05% and 25.68% respectively of the post issue paid up equity share capital of the company.
Price Band: Rs. 77 per equity share of face value of Rs. 10/- each.
The floor price is 7.7 times the face value of the equity shares.
Bids can be made for a minimum of 3200 equity shares and in multiples of 1600 equity shares thereafter.