AMIC Forging Limited IPO Opens for Subscription

AMIC Forging Limited IPO Opens for Subscription

VoM News Desk | November 29, 2023 | 04:34 PM IST | Breaking News | Follow on Google News

AMIC Forging Limited IPO Opens for Subscription

AMIC Forging Limited IPO Opens for Subscription

AMIC Forging Limited’s initial public offering (IPO) is open for subscription starting today, November 29, and will close on December 1. The IPO’s price band is set between ₹121 and ₹126 per share, with investors able to bid for a minimum of 1000 shares.

Company Background and Industry Presence

Formerly known as Kali Mata Forging Private Limited, AMIC Forging Limited is a manufacturer of forged components catering to various industries, including heavy engineering, steel, oil and gas, and power sectors. The company specializes in producing precision machined parts that adhere to international standards and customer specifications.

Promoters and Market Comparisons

The company is promoted by Girdhari Lal Chamaria, Anshul Chamaria, Manju Chamaria, and Rashmi Chamaria. In terms of market comparison, AMIC Forging Limited’s peers include Maiden Forgings Ltd and Ramkrishna Forgings Ltd, with respective price-to-earnings (P/E) ratios of 10.42 and 139.21.

IPO Details and Utilization of Funds

The IPO aims to raise ₹34.80 crore through a fresh issue of 2,762,000 equity shares, with no offer for sale (OFS) component. The net proceeds are intended for general corporate purposes, working capital needs, and establishing a new manufacturing facility. The IPO’s equity shares allocation includes 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.

Subscription Status and Grey Market Premium

On day 1, the AMIC Forging IPO was subscribed 2.06 times, receiving a positive response from retail and non-institutional investors. The IPO’s grey market premium (GMP) today stands at +30, indicating a premium of ₹30 over the issue price in the grey market. This suggests an estimated listing price of ₹156 per share, which is 23.81% higher than the IPO price of ₹126.

Registrar and Lead Managers

The registrar for the IPO is Bigshare Services Pvt Ltd, with Gretex Corporate Services Limited as the book running lead manager. Gretex Share Broking is the market maker for the IPO.

VoM News Desk

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