Advance Technoforge IPO (27-29 July) Analysis

IPO Analysis | BSE SME | 100% Fixed Price Issue (Pure Fresh Issue) | Regulation 229(1) and 253(3)

Based on Prospectus dated July 20, 2026 | Forged and Precision Machined Steel Components | Rajkot, Gujarat

STATUS: LIVE FIXED PRICE ISSUE, BIDDING OPENS MONDAY JULY 27 AND CLOSES WEDNESDAY JULY 29, 2026

Pure Fresh Issue of 25,29,600 Equity Shares at a Fixed Price of Rs.95.00 per Share | Gross Proceeds Rs.2,403.12 Lakhs | No Offer for Sale

BSE SME Platform | RoNW of 30.33% (FY26) is highest among 2 listed peers | Unlike most reports in this series, this is a Fixed Price, not Book Built, Issue

NOTABLE DISCLOSURE:

The Company previously filed a Draft Prospectus with BSE SME on March 27, 2025, which was subsequently withdrawn after responding to BSE SME's queries. This Prospectus is a refiled version with changed Objects of the Issue and an additional financial stub period included. The Company itself flags that this prior withdrawal and refiling may be perceived negatively by investors. See Section 6 for detail.

 Advance Technoforge Limited was incorporated as Advance Technoforge Private Limited on August 5, 2013, and converted to a public limited company on September 6, 2024. Its CIN is U28111GJ2013PLC076316 and its registered office and factory are at Survey No. 121, Plot No. 1 to 6, Padavala Road, Veraval Shapar, Lodhika, Rajkot, Gujarat. The Promoters are Nilesh Shambhubhai Moliya, Pradipbhai Bhikhabhai Vora, Daxaben Nileshbhai Moliya, Kajal Alpeshbhai Moliya and Shraddhaben Pradipbhai Vora.

The Company manufactures forged steel machined components in Carbon Steel, Alloy Steel and Stainless Steel, specialising in Closed Die Forging, Upset Forging and Ring Rolling Forging, in both rough and precision machined form.

Its products serve the automotive, general engineering, oil and gas, earth moving and heavy machinery industries, supplying original equipment manufacturers directly. The Company holds certifications including IATF 16949:2016 for automotive parts, ISO 9001:2015 for quality management, PED-2014/68/EU and AD 2000 W0 for pressure containing parts, and IBR 1950 for boiler parts, and positions itself among a small group of Indian manufacturers capable of supplying high precision, safety critical forged components to OEMs across commercial vehicles, farm equipment, off highway equipment, oil and gas, power generation and railways.

Unlike most companies in this report series, Advance Technoforge's revenue has been roughly flat across the last 3 fiscal years (Rs.4,796.41 Lakhs in FY 2024 to Rs.5,004.82 Lakhs in FY 2026), while profitability has grown substantially through margin expansion, with PAT more than doubling from Rs.170.49 Lakhs to Rs.405.86 Lakhs over the same period. The Company is now raising capital through this Fixed Price Issue to fund new plant and machinery, working capital and partial debt repayment.

Key Basics

Particulars	Details
Document Type	Prospectus dated July 20, 2026, a 100% Fixed Price Issue (not book built). Bid or Issue opens Monday, July 27, 2026 and closes Wednesday, July 29, 2026. A prior Draft Prospectus was filed on March 27, 2025 and subsequently withdrawn; this Prospectus is a refiled version (see Section 6).
Issue Structure	Pure Fresh Issue of 25,29,600 Equity Shares at a Fixed Issue Price of Rs.95.00 per Equity Share, aggregating to Rs.2,403.12 Lakhs Gross Proceeds. No Offer for Sale.
Face Value	Rs.10 per Equity Share. The Fixed Issue Price of Rs.95.00 represents 9.5 times face value.
Promoters	Nilesh Shambhubhai Moliya, Pradipbhai Bhikhabhai Vora, Daxaben Nileshbhai Moliya, Kajal Alpeshbhai Moliya and Shraddhaben Pradipbhai Vora. The Company has only 10 shareholders as of this Prospectus, a very concentrated pre-IPO holding.
Selling Shareholders	Not applicable. This Issue is entirely a Fresh Issue with no Offer for Sale.
Eligibility Route	Regulation 229(1) and 253(3) of the SEBI ICDR Regulations, 2018.
Listing Exchange	BSE SME Platform, with in principle approval dated March 30, 2026.
Lead Manager	Sun Capital Advisory Services Private Limited.
Registrar	KFin Technologies Limited.
Bid or Issue Dates	Opens: Monday, July 27, 2026. Closes: Wednesday, July 29, 2026.
Listed Peers, One Line	2 listed peers (Tirupati Forge Limited and Forge Auto International Limited), both larger by revenue; the Company's RoNW of 30.33% is the highest of the 3.

The single most distinguishing feature of this offer, relative to every other report in this series to date, is that it is a Fixed Price Issue rather than a Book Built Offer: the Issue Price of Rs.95.00 per Equity Share is already determined, so unlike RHPs with blank [TBD] price fields, all proceeds, P/E and valuation figures in this Prospectus are final rather than provisional. The Company's extremely small pre-IPO shareholder base (10 shareholders) is also unusual among this report series.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Purchase and installation of plant and machinery for precision machine components (at Existing Premises)	719.31	A specific rupee figure inclusive of GST is disclosed, but the Company's own Risk Factors (Risk Factor 16) disclose that orders for this machinery have not yet been placed as of this Prospectus, so cost and timing execution risk remains open despite the Fixed Price nature of the Issue.
Part funding of working capital requirements	725.00	A specific rupee amount disclosed as a standalone Object.
Repayment or prepayment of borrowings	239.50	A specific rupee amount disclosed; the summary reviewed here does not include a lender-by-lender certified schedule.
General corporate purposes	359.31	Capped at 15% of Gross Proceeds or Rs.10 Crore, whichever is lower; here already quantified since this is a Fixed Price Issue.

Because this is a Fixed Price Issue, the full Net Proceeds table is already resolved: Rs.2,403.12 Lakhs of Gross Proceeds, less Rs.360.00 Lakhs of Issue related expenses, leaving Rs.2,043.12 Lakhs of Net Proceeds split across the 4 Objects above with no blank [TBD] figures remaining, which is more precise than most RHPs in this series at this stage.

The key caveat is that the largest capital expenditure Object, plant and machinery, has not yet been committed through firm purchase orders, so while the rupee figure is fixed, execution timing and final cost remain contingent on vendor negotiations still to come.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	5,004.82	5,070.38	4,796.41
Total income	5,072.67	5,115.72	4,823.59
Profit after tax	405.86	269.67	170.49
PAT margin (%)	8.11	5.31	3.55
Basic and Diluted EPS (Rs.)	6.24	4.15	2.62
Return on net worth / RoNW (%)	30.33	28.20	24.62
Net worth (approx., share capital plus reserves)	1,369.10	963.25	693.58
NAV per equity share (Rs.)	20.59	N/A	N/A

Balance Sheet and Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Total assets	4,692.03	3,951.01	2,864.95
Total borrowings (long and short term)	1,729.11	1,750.62	1,118.65
Net cash from operating activities	445.14	378.60	18.88
Net cash used in investing activities	(270.75)	(880.49)	(182.26)

This is one of the few reports in this series where revenue has been essentially flat over 3 fiscal years, growing only from Rs.4,796.41 Lakhs in FY 2024 to Rs.5,004.82 Lakhs in FY 2026 (dipping slightly in FY 2026 versus FY 2025), a pattern quite different from the sharp growth trajectories seen elsewhere in this batch. Independently recomputed, revenue grew about 5.7% in FY25 before contracting about 1.3% in FY26. What has changed materially is profitability: PAT more than doubled from Rs.170.49 Lakhs to Rs.405.86 Lakhs over the same period, and PAT margin rose from 3.55% to 8.11%, driven primarily by a falling cost of materials consumed as a share of revenue (from roughly 60.5% in FY24 to about 49.8% in FY26) rather than volume growth.

This is a margin expansion story on a flat revenue base, which is a different quality of growth than the topline-driven stories in most other reports in this series and worth weighing accordingly.

Cash flow shows an improving trend: operating cash flow rose from a thin Rs.18.88 Lakhs in FY 2024 to Rs.445.14 Lakhs in FY 2026, while investing outflows have been substantial in all 3 years reflecting ongoing capital expenditure (peaking at Rs.880.49 Lakhs in FY 2025).

Total borrowings have grown alongside the balance sheet but net worth has also expanded meaningfully, roughly doubling from FY24 to FY26, aided by retained profit rather than fresh equity issuance in this pre-IPO period.

How Does It Compare to Peers?

Company	Revenue (Rs. Lakhs)	Diluted EPS (Rs.)	P/E (times)	RoNW (%)	NAV/Share (Rs.)
Advance Technoforge Limited	5,004.82	6.24	15.22	30.33	20.59
Tirupati Forge Limited	16,247.85	0.51	93.56	5.24	10.53
Forge Auto International Limited	22,613.28	9.91	9.39	17.00	63.23

The Prospectus discloses 2 listed peers, Tirupati Forge Limited and Forge Auto International Limited, both substantially larger than Advance Technoforge by revenue (roughly 3.2 times and 4.5 times, respectively). The industry P/E range is wide, from 9.39 times (Forge Auto International) to 93.56 times (Tirupati Forge), with the Company's own Fixed Price P/E of 15.22 times sitting toward the lower end of that range.

On RoNW, the Company's 30.33% is the highest of all 3, ahead of Forge Auto International (17.00%) and well ahead of Tirupati Forge (5.24%), suggesting more efficient capital use on a smaller base, though as with other peer comparisons in this series, scale and business mix differences mean this should be read as directional context rather than a precise valuation benchmark.

Key Risks

l This Prospectus is a refiling: the Company originally filed a Draft Prospectus with BSE SME on March 27, 2025, which was withdrawn after BSE SME's queries were addressed. The current Objects of the Issue have changed from the withdrawn version, and an additional 3 month financial stub period has been added to update the Company's financial position. The Company itself acknowledges this prior withdrawal and refiling may be viewed negatively by investors, analysts and the public.

l Customer concentration is material and appears to be increasing: the single largest customer's share of revenue rose from 12.34% in FY 2024 to 19.87% in FY 2025 to 25.39% in FY 2026, with the top 5 customers together contributing a large majority of revenue in each year, and no long term supply agreements in place with these customers.

l Orders for the plant and machinery that represents the largest identified capital expenditure Object (Rs.719.31 Lakhs) have not yet been placed as of this Prospectus, exposing that Object to cost and timing execution risk despite the Fixed Price nature of the Issue overall.

l Historical bank statements and payment trails relating to a January 2014 Rights Issue allotment are not traceable, which the Company discloses could expose it to regulatory scrutiny in the event of an inquiry, notwithstanding that the allotment itself was duly approved and filed at the time.

l Revenue has been essentially flat for 3 consecutive fiscal years (a roughly 4.3% total change from FY 2024 to FY 2026, including a slight FY26 dip versus FY25), so the recent profit growth has come entirely from margin expansion rather than volume growth, a less proven growth driver to extrapolate forward.

l Operations and revenue are geographically concentrated in Maharashtra and Gujarat, and the Company relies heavily on loan facilities from a small number of lenders (HDFC Bank, SIDBI and Tata Capital).

l Manufacturing capacity is currently underutilised, and the Company's ability to achieve optimal utilisation of both existing and newly added capacity is not guaranteed.

l The Company depends on a concentrated group of raw material suppliers, with the top supplier alone contributing over 22% of purchases in FY 2026.

l There is a documented history of delays in filing statutory returns and payment of statutory dues.

l The Company's logo is still undergoing trademark registration as of this Prospectus, leaving brand protection incomplete at listing.

l Certain unsecured loan agreements are executed on plain paper and are not adequately stamped, which the Company discloses could affect their legal enforceability.

l The Company derives some revenue from exports and is exposed to foreign currency and international trade risks on that portion of its business.

Positives to Note

l Profitability has grown substantially through genuine margin expansion, with PAT more than doubling from Rs.170.49 Lakhs in FY 2024 to Rs.405.86 Lakhs in FY 2026, and PAT margin rising from 3.55% to 8.11%, driven by falling raw material cost as a share of revenue rather than one-off items.

l Return on net worth of 30.33% in FY 2026 is the highest among all 3 companies in the disclosed peer set, including 2 larger listed forging companies.

l Because this is a Fixed Price Issue, the Issue Price, Gross Proceeds and full Net Proceeds allocation are all already determined and disclosed, with no blank [TBD] valuation figures remaining, unlike the RHPs elsewhere in this series that are still awaiting price discovery.

l The Company holds a broad set of internationally recognised quality certifications (IATF 16949:2016, ISO 9001:2015, PED-2014/68/EU, AD 2000 W0, IBR 1950), supporting its positioning as a supplier of safety critical components to OEMs.

l Operating cash flow has improved substantially, from a thin Rs.18.88 Lakhs in FY 2024 to Rs.445.14 Lakhs in FY 2026, indicating strengthening cash conversion alongside the margin improvement.

l The Company has more than 12 years of operating history (incorporated 2013) manufacturing safety critical, close tolerance forged components, which it argues, and which is plausible given the certifications held, creates a genuine qualification barrier against new entrants.

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