Munish Forge IPO Overview
Munish Forge Ltd’s SME IPO opens 30 Sept 2025 and closes 3 Oct 2025, offering 77,00,400 equity shares (face value ₹10) in a ₹73.92 cr issue. Price band is ₹91–96. The issue comprises a fresh issue of 63,56,400 shares and an offer-for-sale of 13,44,000 shares. Funds will be used for capex, working capital, debt repayment and general corporate purposes.
Munish Forge GMP Status
| GMP (₹) (grey market premium) | IPO Price (₹) |
| 0 | 91-96 |
| Last Updated: 6 Oct 2025 | |
| 📌 Note: The above GMP data is unofficial and has been collected from multiple sources including grey market dealers and market observers. It is provided purely for informational and educational purposes. Please consult your financial advisor before making any investment decisions. | |
IPO Basic Detail
Munish Forge Core Business & Overview
Munish Forge Limited is a public company incorporated on July 25, 1986 in India. It operates out of Ludhiana, Punjab, with its manufacturing facility located in Ludhiana’s Focal Point region. The company is also referred to in some directories as Munish Forge Private Limited (before conversion or for some operations) with CIN U28910PB1986PTC006950.
Business / Core Activities
Munish Forge is in the engineering / manufacturing domain, with a focus on forged / metal components and related products.
Its primary product lines and services include:
- Flanges, scaffolding systems, tubes, props, steel accessories.
- Defense components: tank track chains, bomb shells, war-critical parts.
- Auto parts, infrastructure / construction metal components.
- The company claims it handles the entire manufacturing chain: from die design to packaging.
Strengths
Based on the company’s disclosures and credit-rating / industry commentary, some of Munish Forge’s strengths include:
Integrated Manufacturing Capability
- The company handles end-to-end stages: design, forging, machining, finishing and packaging.
- It uses modern machinery: CNC systems, robotic welders, induction furnaces, CAD/CAM.
- This vertical integration helps in quality control, cost optimization, and turnaround times.
Quality Certifications & Approvals / Entry Barriers
- Certifications: ISO 9001, ISO 14001, IATF 16949, PED.
- Given that many of its products (flanges, defense parts) demand stringent standards, certification and approvals act as barriers for less capable entrants.
- It maintains NABL-certified labs for testing.
Diverse End-Industry Exposure
- The company serves several sectors: defense, oil & gas, automobile, infrastructure, construction.
- It also has both domestic and export clients (Europe, North America, Middle East).
- This diversification reduces dependency on any single industry.
Experienced Promoters & Established Track Record
- The promoters (e.g. Mr. Davinder Bhasin) have multiple decades of industry experience.
- The company has been in operations for 4 decades.
Moderate Financial Risk Profile (Outlook)
- In the latest rating rationale from Brickwork (Sep 2025), the company is assessed to have a “moderate overall financial risk profile.”
- That suggests the credit rating agency finds the company’s financial metrics to be manageable (though with caveats).
Risks
From the prospectus, rating reports, and independent commentary, key risks include:
Raw Material Price Volatility & Cost Pressure
- The company is heavily reliant on metals (billets, coils, strips, etc.) whose prices are volatile.
- If metal prices rise and the company cannot pass these costs to customers in time, margins may get squeezed.
Dependence on Key / Large Customers & Customer Concentration
- The company mentions that a few customers contribute significantly to revenue; losing one could materially affect business.
- Also, in the infrastructure / defense domain, large contracts tend to have long lead times and tight specifications, increasing exposure to client negotiation power.
Cyclical / Sectoral Demand & Macro Sensitivity
- Many of the end markets (construction, real estate, oil & gas capital expenditure) are cyclical.
- In downturns, orders may get deferred or canceled, impacting utilization.
Working Capital Intensity & Cash Flow Stress
- The operations are working capital heavy because of inventory holding, receivables, and long credit cycles.
- The company has disclosed negative cash flows in past periods (operating, investing) in certain quarters or years.
- If clients delay payments and the company has tight liquidity, it might face stress servicing debt or meeting obligations.
Dependence on Key Personnel & Management
- Its promoters/directors play a critical role in operations; their exit or incapacity could disrupt operations.
- Any lapse in corporate compliance: The prospectus notes that there are some discrepancies in certain corporate records or filings, and regulatory action could have financial consequences.
Operational / Infrastructure Risk
- If its manufacturing facility is disrupted (due to natural calamities, accidents, machinery breakdown), production may halt.
- High inventory levels may lead to obsolescence or waste in changing market conditions.
Regulatory, Export & Geopolitical Risks
- As it exports to various countries, changes in trade policies, tariffs, or regulatory standards (or disruptions in supply chains) could impact exports.
- Defense contracts especially carry regulatory oversight and can be subject to delays, audits, cancellations, or changes in government procurement strategies.
Financial Performance Overview (₹ in Crore)
| Year | Revenue | Profit | Assets |
| FY 2023 | 160.12 | 1.97 | 106.88 |
| FY 2024 | 159.89 | 4.39 | 113.09 |
| FY 2025 | 175.45 | 14.30 | 161.54 |
Revenue
- FY 2023 to FY 2024: Revenue stayed flat (₹160.12 Cr → ₹159.89 Cr), showing no major growth.
- FY 2025: Strong improvement to ₹175.45 Cr, indicating 10% growth year-on-year, suggesting better order flow or pricing power.
Profit
- FY 2023: Profit was modest at ₹1.97 Cr, showing thin margins.
- FY 2024: Jumped to ₹4.39 Cr, more than 2x growth, reflecting improved cost management.
- FY 2025: Surged to ₹14.30 Cr, over 225% growth, showing a sharp turnaround in profitability and better efficiency.
Assets
- FY 2023: Assets stood at ₹106.88 Cr.
- FY 2024: Increased moderately to ₹113.09 Cr, a 6% rise.
- FY 2025: Significant jump to ₹161.54 Cr, almost 43% growth, likely due to expansion, capex, or higher working capital needs to support larger operations.
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
