Advance Technoforge Limited IPO Overview
Advance Technoforge Limited (ATL), started in 2013, is a manufacturer and supplier of closed-die steel forging, upset forging, and ring rolling forging in rough and precision machined condition. The company specialises in manufacturing forged steel machined components using carbon steel, alloy steel, and stainless steel, serving industries including automotive, general engineering, oil & gas, earthmoving and agriculture equipment, hydraulic cylinders, power transmission, and railways. The company operates an integrated manufacturing facility with an installed forging capacity of 6,000 metric tonnes per annum, supported by three production lines equipped with Huta forging hammers, belt drop hammers, induction billet heaters, and trimming presses — located in Rajkot, Gujarat.
The IPO is a BSE SME Fixed Price issue consisting entirely of a fresh issue of 25.30 lakh equity shares at a fixed issue price of ₹95 per share, aiming to raise ₹24.03 crore. At the fixed issue price, the post-issue market valuation of the company stands at approximately ₹86 crore. The IPO opens on 27 July 2026 and closes on 29 July 2026, with listing expected on 3 August 2026 on the BSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Fixed Price Issue – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 27 July 2026 |
| IPO Close Date | 29 July 2026 |
| Allotment Date | 30 July 2026 (Expected) |
| Refund Initiation | 01 August 2026 |
| Credit to Demat | 01 August 2026 |
| Listing Date | 03 August 2026 (Tentative) |
| Issue Price | ₹95 per share (Fixed Price) |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,28,000 (2 lots = 2,400 shares) |
| Minimum Investment (HNI) | ₹3,42,000 (3 lots = 3,600 shares) |
| Issue Size | ₹24.03 crore |
| Fresh Issue | 25,29,600 shares (₹24.03 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds will flow directly into the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 0% |
| Non-Institutional Investors (NII/HNI) | ~50% |
| Retail Individual Investors (RII) | ~50% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The issue is entirely a fresh issue, meaning no promoter is exiting and all IPO proceeds will be retained by the company.
Objects of the Issue (Fund Utilization)
The proceeds will primarily be used for purchasing new manufacturing machinery, meeting working capital requirements, and general corporate purposes. Additionally, the company will also use a portion of the funds for debt repayment.
- Purchase of new manufacturing machinery — capacity expansion
- Repayment of existing borrowings
- Working capital requirements
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: Sun Capital Advisory Services Pvt. Ltd.
- Registrar to the Issue: KFin Technologies Ltd.
Promoters & Management
The promoters of the company are Mr. Nilesh Shambhubhai Moliya, Mr. Pradipbhai Bhikhabhai Vora, Mrs. Daxaben Nileshbhai Moliya, and Mrs. Kajal Alpesh Moliya. The promoters bring over two decades of hands-on experience in precision forging and engineering component manufacturing, and are actively involved in day-to-day operations.
Company Details
Advance Technoforge Limited manufactures and supplies forged and precision-machined components as per customer specifications and international standards for original equipment manufacturers (OEMs) and various end-use industries, including automotive, general engineering, oil and gas, earthmoving and agriculture equipment, hydraulic cylinders, power transmission, and railways.
Sectors Served:
- Automotive (OEMs & Tier-1 suppliers)
- Oil & Gas
- Railways
- Construction & Earthmoving Equipment
- Hydraulic Cylinders & Power Transmission
- Valves & Pumps
Key Products Manufactured:
The company’s product range includes Retainer Plates, Valve Bonnets, Trunnions, Tow Hook Assemblies, Rod Eyes, Glands, Cross Members, Bearing Housings, Chain Anchor Weldments, Bearing Housing Flanges, Connecting Rods, and many more — across 30+ categories of engineered components.
Key Capabilities:
- Integrated manufacturing facility with three production lines equipped with Huta forging hammers, belt drop hammers, induction billet heaters, and trimming presses with an installed capacity of 6,000 metric tonnes per annum.
- In-house forging, precision machining, coatings, surface treatment, and quality testing
- Domestic and international export capabilities
Manufacturing Facility:
- Sr. No. 121, Plot No. 1–6, Padavala Road, Veraval Shapar, Lodhika, Rajkot, Gujarat – 360024
Certifications:
- IATF 16949, ISO 9001, PED 2014/68/EU, AD 2000 W0, and IBR 1950 — enabling the company to serve highly regulated industries with stringent quality requirements.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹51.16 | — |
| FY25 | ₹50.73 | ₹2.70 |
| FY26 | ₹50.73 | ₹4.06 |
Key Financial Metrics
- Revenue remained largely flat between FY24 and FY26, while PAT rose significantly from ₹2.70 crore in FY25 to ₹4.06 crore in FY26 — a growth of ~51% YoY.
- Return on Net Worth (RoNW) stands at over 30%, indicating strong profitability relative to equity base.
- Post-issue market capitalization: ~₹86 crore
- Fixed price issue at ₹95 per share — no price discovery through book building
Company Strengths
- Over 30 categories of engineered components serving global OEMs, with all key manufacturing certifications including IATF 16949, ISO 9001, PED 2014/68/EU, AD 2000 W0, and IBR 1950.
- Strategic location of manufacturing facilities in Rajkot, Gujarat — India’s key forging and engineering cluster — with access to skilled workforce and raw material supply chains.
- Integrated manufacturing facility under one roof — forging, machining, coating, treatment, and testing
- Strong PAT growth of ~51% in FY26 despite flat revenue, indicating improving operational efficiency
- Long-standing OEM relationships and a proven track record of delivering quality forged components to domestic and international clients.
- Entire IPO is a fresh issue — zero promoter exit, all funds going towards business expansion
Key Risks & Challenges
- Reliance on a limited group of key customers for a significant portion of operational revenue — customer concentration risk.
- Dependence on a limited number of suppliers for steel without any long-term supply agreements in place — raw material procurement risk.
- Manufacturing capacity is currently underutilised, which may affect operational efficiency and profitability going forward.
- Revenue has remained flat for the past two years (~₹50–51 crore) — lack of top-line growth is a concern
- No listed peers available for direct comparison — making valuation benchmarking difficult for investors.
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME platform
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
