Munish Forge IPO

About Munish Forge IPO

The IPO of Munish Forge Ltd comprises a fresh issue of up to 63,56,800 equity shares. It also has an offer for size of up to 13,44,000 equity shares. The price band of the IPO is TBA and the lot size is TBA.

The opening date is TBA. The closing date is TBA. The listing date is TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.

Munish Forge is into manufacturing components catering to the requirements of the Indian Army and various industries such as defence, oil and gas, automobile, construction and infrastructure.

Objectives of Munish Forge IPO

• Capital expenditure towards civil construction and capital expenditure towards purchase of additional machinery
• Repayment/pre-payment of certain debt facilities
• Working capital requirements
• General corporate purposes

Industry Outlook

The Indian construction equipment (CE) industry demonstrated exceptional performance in FY 2023-24, recording a 26% increase in overall sales volume with total equipment sales surpassing projections to reach 135,000 units compared to 107,000 units in FY 2023.

This impressive growth was driven by a 24% increase in domestic sales, rising from 99,735 units in FY 2023 to 123,660 units in FY 2024, complemented by a 49% expansion in exports, growing from 8,044 units to 11,990 units during the same period. On the other hand, the auto component sector in India is set to mirror the growth of the entire automotive industry in India with the potential to triple its current valuation of $74 billion by 2030.

Also, the Indian defence sector is undergoing a structural transformation driven by sustained capital expenditure, targeted policy reforms, and a strategic push for self-reliance in defence manufacturing. The Government of India has steadily increased budgetary allocations towards defence, with a sharp focus on capital procurement and indigenous production.

The Union Budget for FY 2023–24 allocated ₹1.62 lakh crore towards capital outlay for the armed forces, representing approximately 30% of the total defence budget. Over the past few years, procurement categories such as Buy (Indian-IDDM) and Buy (Indian) have gained precedence, in line with the Ministry of Defence’s stated objective of enhancing domestic value addition and reducing import dependency.

Company Information

Munish Forge Ltd manufactures components like flange, scaffolding, auto parts, tank tracks chains, bomb shells, fence post and steel accessories as per customer specifications and International Standard catering to the requirements of Indian army and various industries such as defence, oil and gas, automobile, construction and infrastructure.

Starting from April 1, 2024, Munish achieved a significant milestone by initiating operations in its new casting division at Dev Arjuna Cast and Forge Private Limited (DACF) now known as Munish Forge Casting Division. This strategic expansion involved acquiring all plant and machinery from DACF and leasing its land to establish a casting facility.

Strengths of Munish Forge IPO

• Experienced promoters
• Integrated manufacturing facility
• Quality assurance and control
• Quality driving global reach
• Diversified business model

Risks of Munish Forge IPO

• Exposure to various business, economic, political, regulatory and legal risks
• Dependence on few customers for sales
• Exposure to financial, operational and regulatory risks due to bank guarantees provided to third parties
• Unforeseen or man-made disasters disrupting operations
• Changes in business model leading to scrapping of inventory

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Skyline Financial Services Ltd
• Book Running Lead Manager: Gretex Corporate Services Ltd

Munish Forge Business Model

With over 40 years of legacy in precision engineering, Munish Forge Ltd has established itself as a trusted supplier in the defence sector. Starting with a single machine shop, it has grown into a powerhouse, manufacturing critical components for the Indian Army, such as battle tanks, track chains and bomb shells. The company manufactures components like flange, scaffolding, auto parts, tank tracks chains, fence post and steel accessories as per customer specifications and international standards.

Munish Forge Company Growth Trajectory

The company’s revenue from operations grew from ₹124.5294 crores in FY 22 to ₹159.8871 crores in FY 24, while PAT margin grew from 1.14% in FY 22 to 2.75% in FY 24. As part of its growth strategy, the company is actively expanding into new sectors like Railways, where it has recently begun registering for tenders to supply critical forged components. Integrated manufacturing facility coupled with quality assurance and control has helped the company grow over the years.

Munish Forge Market Position

Munish Forge Ltd has over 40 years of legacy in precision engineering. It serves clients across developed markets like the USA, UK, Canada, and Europe. The company is skilled at making different forged parts that meet American and European quality standards, like ASTM and EN74-1:2022. It also holds certifications like ISO 9001:2015, ISO 14001- 2015, IATF- 16949- 2016, PED (Pressure Equipment Directive).

How to Check Allotment Status of Munish Forge IPO?

1. Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Pvt Ltd
  
• Click on ‘Public Issue’ from ‘Investors’ dropdown
  
• Choose ‘Company Name
  
• Enter DPID/Client ID or Application Number or PAN Number
  
• Click on ‘Search’ to know the status
  

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO bid verification module. You can use it to check the status of Munish Forge Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click 'Submit' to know the allotment status.

How to Apply for Munish Forge IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.