The AMIC Forging IPO is making waves in the financial market, with a book-built issue of Rs 34.80 crores and a fresh issue of 27.62 lakh shares. This opportunity has garnered significant attention, and here’s why.
AMIC Forging IPO Timeline
The bidding for the AMIC Forging IPO began on November 29, 2023, and will close on December 1, 2023. The allotment is set to be finalized on December 6, 2023, with the listing date tentatively scheduled for December 11, 2023.
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Pricing and Lot Details
Investors can enter the market with a price band of ₹121 to ₹126 per share. The minimum lot size for an application is 1000 shares, requiring a minimum investment of ₹126,000 for retail investors and ₹252,000 for HNIs.
Key IPO Details
- Issue Type: Book Built Issue IPO
- Listing At: BSE SME
- Total Issue Size: 2,762,000 shares
- Face Value: ₹10 per share
- Shareholding Pre-Issue: 7,726,410
- Shareholding Post-Issue: 10,488,410
IPO Reservation
AMIC Forging IPO offers 2,762,000 shares, with allocations as follows:
- QIB: 18.97%
- NII: 14.27%
- RII: 33.27%
- Anchor Investors: 28.46%
Anchor Investors
The IPO raised Rs 9.90 crores from anchor investors, with a lock-in period for 50% shares until January 18, 2024, and the remaining shares until April 11, 2024.
IPO Subscription Status
As of November 30, 2023, the AMIC Forging IPO is subscribed 11.43 times, with strong interest across categories. Retail subscriptions lead at 16.83 times, followed by QIB at 3.53 times and NII at 9.35 times.
Financial Snapshot
AMIC Forging Limited has shown robust financial performance, recording revenues of Rs. 2,954.57 Lacs, Rs. 11,585.41 Lacs, and Rs. 7,111.97 Lacs for the periods ending June 30, 2023, March 31, 2023, and March 31, 2022, respectively. Notably, its revenue increased by 63.65%, and profit after tax (PAT) rose by 1031.78% between March 31, 2022, and March 31, 2023.
Market Position
Incorporated in 2007, AMIC Forging Limited specializes in manufacturing forged components for various industries. With a focus on precision machined components, the company has earned a strong position in the market.
Future Plans
AMIC Forging has strategic plans for expansion, including backward integration by starting the manufacturing of Steel Melting & Ingot Casting. This move is expected to increase the product base and overall output.
Objects of the Issue
The net proceeds from the IPO will be allocated towards:
- Setting up of a manufacturing facility
- Meeting working capital requirements
- General corporate purposes
Expert Opinion
While the company operates in a competitive segment, its sudden boost in profit margins raises interest. However, well-informed investors are advised to carefully evaluate the sustainability of this growth.
Conclusion
The AMIC Forging IPO presents a compelling investment opportunity, backed by strong financials, strategic expansion plans, and a prominent market position. As the subscription status indicates, the IPO has garnered considerable interest, making it one to watch in the coming weeks.
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