Gujarat Victory Forgings IPO DHRP Analysis
Updated: Aug 11
IPO Analysis | NSE and BSE Main Board | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 6(1)
Based on Draft Red Herring Prospectus dated March 30, 2026 | Non-Ferrous Metal (Copper) Manufacturing | Vadodara, Gujarat
STATUS: DRHP FILED | Fresh Issue: up to 6,500,000 Shares | Offer for Sale: up to 13,200,000 Shares | Regulation 6(1) | NSE and BSE Main Board | Pre-SEBI Observation Stage | Highest PAT Margin Among Identified Peers (FY2025) | 9,360 MTPA Installed Capacity |
Gujarat Victory Forgings Limited is a Vadodara, Gujarat-headquartered manufacturer of non-ferrous metal products, primarily copper, produced by processing and recycling copper scrap. The company was incorporated in 1990 as Gujarat Victory Forgings Private Limited, originally in the metal forging business, and converted to a public limited company in March 2026. Its registered office is at Block No.1147, Old RS No.1558, Village Manjusar, Lamdapura, Savli, Vadodara 391775, Gujarat. Its website is www.gvfpl.com. Its CIN is U27201GJ1990PLC014433.
The Promoters are Vijendrakumar Bishamber Gupta, Manjuben Vijendrakumar Gupta, and their son Rahul Vijendra Agrawal (Managing Director with effect from December 1, 2025), representing first and second generation family leadership with an average of over two and a half decades of experience in the non-ferrous metal industry. Statutory Auditor is M/s Parikh Mehta & Associates, Chartered Accountants.
Notably, the company's origins were in metal forging, but it diversified into copper products in 2003 and has since grown that business into its core activity; the original forging unit (Unit I, established 1990) was discontinued and fully shut down in 2024.
Today, the company manufactures 9 products across three categories: copper cathodes (99.96% to 99.99% purity, 49.34% of Fiscal 2025 revenue), copper related products (tubes and pipes, ingots, busbar, rods, alloy rods, coil, and brass tubes and pipes, 22.05% of Fiscal 2025 revenue), and Master Alloys of Copper (arsenic, phosphorus, nickel, chromium-zirconium, and silicon alloys, 22.14% of Fiscal 2025 revenue), serving power infrastructure, EV and automotive, construction and real estate, and renewable energy end-markets.
According to the CareEdge Report commissioned for this Offer, the company achieved the highest PAT margin among its identified listed peers in Fiscal 2025.
The company operates two active manufacturing units in Vadodara, Gujarat, described by the CareEdge Report as India's largest copper cathode and copper wire producing state: Unit II (2,760 MTPA, commenced 2019) and Unit III (6,600 MTPA, commenced 2023), together totalling 9,360 MTPA of installed capacity, both ISO 9001:2015 certified with an in-house testing laboratory.
In 2022, the company also established an Associate company in Zambia, Buntingwa Resources Limited, for copper cathode manufacturing (900 MTPA capacity); during the six months ended September 30, 2025, the company recognised a one-time gain of Rs.45.07 million on losing control of this entity, which is now accounted for as an associate rather than a consolidated subsidiary.
As of September 30, 2025, the company served 176 customers across 15 Indian states and union territories plus exports to Oman, Zambia, South Korea, Indonesia and UAE. Brickwork Ratings assigned the company a BWR A-/BWR A2 rating (long-term/short-term) for Fiscal 2025.
Key Basics
This Offer is a 100% Book Built Offer combining a Fresh Issue of up to 6,500,000 Equity Shares by the Company with an Offer for Sale of up to 13,200,000 Equity Shares by Promoter Selling Shareholder Vijendrakumar Bishamber Gupta. The DRHP is dated March 30, 2026 and is at the pre-SEBI observation stage. The Issue is made under Regulation 6(1) of SEBI ICDR Regulations, listing on both NSE and BSE. All [TBD] items including Price Band, bid dates and final rupee amounts remain undetermined.
Document Type | Draft Red Herring Prospectus (DRHP) dated March 30, 2026. Pre-SEBI observation stage. All [TBD] items to be finalised at RHP stage. |
Issue Structure | 100% Book Built Offer comprising a Fresh Issue of up to 6,500,000 Equity Shares and an Offer for Sale of up to 13,200,000 Equity Shares by the Promoter Selling Shareholder. Total Offer of up to 19,700,000 Equity Shares. Unlike some peers in this series, both components are structured as fixed share counts rather than fixed rupee amounts, so total proceeds depend on the eventual Offer Price. |
Face Value | Rs.10 per Equity Share, following a sub-division from Rs.100 to Rs.10 (January/February 2026) and a 390:1 bonus issue (February/March 2026). |
Promoter Selling Shareholder | Vijendrakumar Bishamber Gupta, offering up to 13,200,000 Equity Shares. Weighted Average Cost of Acquisition (WACA): Rs.0.01 per share, reflecting the pre-Offer stock split and large bonus issue. |
Promoters | Vijendrakumar Bishamber Gupta, Manjuben Vijendrakumar Gupta, and Rahul Vijendra Agrawal. |
Pre-Offer Capital | 67,447,500 Equity Shares outstanding as of the DRHP date. |
Eligibility | Regulation 6(1) of SEBI ICDR Regulations, the standard main board profitability-based eligibility route. |
Listing Exchanges | NSE and BSE. Designated Stock Exchange: [TBD]. In-principle approvals pending. |
BRLMs | Monarch Networth Capital Limited; Nirbhay Capital Services Private Limited. |
Registrar | KFin Technologies Limited. Contact: M. Murali Krishna. |
Bid/Issue Dates | All dates (including Price Band) to be announced after SEBI observations and RHP filing. |
Listed Peers | Two listed peers in the non-ferrous metal recycling and manufacturing space: Jain Resources Recycling Limited and Bhagyanagar India Limited. Industry P/E: highest 61.62x, lowest 33.30x, average 47.46x. |
Pre-IPO Placement | No Pre-IPO Placement has been disclosed in this DRHP, unlike several other companies in this report series. |
A structural point worth noting: unlike most other DRHPs in this series, both the Fresh Issue and the Offer for Sale here are expressed as fixed numbers of shares (6,500,000 and 13,200,000 respectively) rather than fixed rupee amounts, meaning the total money raised, for both the Company and the Promoter Selling Shareholder, will scale directly with wherever the Offer Price is eventually set.
The Promoter Selling Shareholder's Weighted Average Cost of Acquisition of Rs.0.01 per share reflects the pre-Offer 10:1 stock split and a very large 390:1 bonus issue completed in the two months before this DRHP was filed; this is a standard disclosure for long-held founder shares rather than a red flag on its own, but it is worth noting alongside the scale of the OFS (13,200,000 of the promoter's shares, roughly two-thirds of the total Offer) that this represents a meaningful monetisation event for the founding family.
How Will the IPO Money Be Used?
The Fresh Issue (up to 6,500,000 shares) accrues to the Company; the Offer for Sale (up to 13,200,000 shares) accrues entirely to Promoter Selling Shareholder Vijendrakumar Bishamber Gupta, with the Company receiving no benefit from that portion.
Object | Amount (Rs. Mn) | Details |
Capex: Unit III Expansion | 317.85 | Brownfield expansion of copper cathode manufacturing capacity at Unit III, adding 24 electrolysis cells (36 to 60 total), increasing cathode capacity from 5,400 MTPA to 9,600 MTPA. Covers civil work (Rs.42.65 Mn), plant and machinery (Rs.234.30 Mn, incl. customs duty), and electrical infrastructure (Rs.25.01 Mn), plus 5% contingency. Excludes Rs.54.35 Mn GST, to be borne via internal accruals. No purchase orders placed as of the DRHP date. |
Repayment/Prepayment of Borrowings | 400.00 | Prepayment or scheduled repayment of a portion of outstanding borrowings. |
General Corporate Purposes | [TBD] | Capped at 25% of Gross Proceeds. Exact amount to be finalised upon determination of the Offer Price. |
TOTAL IDENTIFIED OBJECTS | 717.85 | Fixed-rupee objects total Rs.717.85 Million; this is funded from the Fresh Issue of 6,500,000 shares, so total Fresh Issue proceeds (and any surplus for General Corporate Purposes) depend on the eventual Offer Price. None of the Objects have been appraised by a bank or financial institution; cost estimates rely on vendor quotations and a CareEdge CV Report. |
The capital expenditure object is directly tied to a specific, well-documented capacity bottleneck: as of the DRHP date, Unit III's upstream melting capacity (approximately 800 MTPM) already exceeds its downstream cathode-refining capacity (approximately 450 MTPM), and the proposed expansion is designed to close that gap by adding 24 electrolysis cells, taking refining capacity to 800 MTPM to match.
This is a brownfield expansion within the existing plant boundary, and the company reports capacity utilisation at Unit III has already climbed to the 81% to 90% range between October 2025 and February 2026 following a steam-washing process upgrade and BIS certification that improved product quality and demand.
That said, as of the DRHP date no purchase orders have been placed for any of the Rs.217.39 million of plant and machinery involved, so timing and cost-overrun risk remains real rather than theoretical. The Rs.400.00 million debt repayment is a standard balance-sheet strengthening measure. As with most DRHP-stage filings, General Corporate Purposes is capped only as a percentage (25% of Gross Proceeds) rather than an absolute number.
Financial Performance
Note: All figures in Rs. Million unless stated; Rs. Crore equivalents provided for Revenue and PAT. Financial periods: six months ended September 30, 2025 (H1 FY2026, stub, not annualised); Fiscal 2025, Fiscal 2024 and Fiscal 2023 (years ended March 31). Restated Consolidated Financial Information audited by M/s Parikh Mehta & Associates. *H1 FY2026 RoE, RoCE and RoNW figures are not annualised.
Revenue, EBITDA, and Profitability
Metric | H1 FY26 (Rs. Mn) | FY2025 (Rs. Mn) | FY2024 (Rs. Mn) | FY2023 (Rs. Mn) |
Revenue from Operations | 3,445.73 | 6,076.50 | 5,111.51 | 5,453.85 |
Revenue (Rs. Crore) | Rs.344.6 Cr | Rs.607.7 Cr | Rs.511.2 Cr | Rs.545.4 Cr |
Revenue Growth % YoY | N/A (H1 stub) | +18.88% | -6.28% | N/A |
Segment Split (FY25) | Copper Cathodes: 49.34% | Master Alloys: 22.14% | Copper Related: 22.05% |
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EBITDA | 206.03 | 283.79 | 153.39 | 120.04 |
EBITDA Margin % | 5.98% | 4.67% | 3.00% | 2.20% |
Profit Before Tax | 276.57 | 292.19 | 157.14 | 114.25 |
Tax Expense (Net) | 52.82 | 88.44 | 64.09 | 53.31 |
Profit After Tax (PAT, total) | 223.74 | 203.75 | 93.05 | 60.94 |
PAT (Rs. Crore) | Rs.22.4 Cr | Rs.20.4 Cr | Rs.9.3 Cr | Rs.6.1 Cr |
PAT Margin % | 6.49% | 3.35% | 1.82% | 1.12% |
Basic and Diluted EPS (Rs., post-bonus) | 3.30* | 3.35 | 1.50 | 0.91 |
Return on Equity (RoE) % | 20.39* | 25.97% | 15.72% | 11.37% |
Return on Capital Employed (RoCE) % | 19.16* | 27.01% | 18.00% | 17.71% |
Return on Net Worth (RoNW) % | 20.48* | 23.42% | 14.47% | 11.25% |
Debt to Equity Ratio (times) | 0.34x | 0.32x | 0.40x | 0.21x |
Net Worth | 1,092.68 | 839.56 | 634.50 | 541.19 |
NAV per Share (Rs., post-bonus) | 16.20 | 12.90 | 9.54 | 8.03 |
Installed Capacity (MTPA) | 9,360 | 9,360 | 8,160 | 8,160 |
Revenue has followed a non-linear path: it declined 6.28% from Rs.5,453.85 million (FY2023) to Rs.5,111.51 million (FY2024), before recovering strongly with 18.88% growth to Rs.6,076.50 million (FY2025), and the H1 FY2026 run-rate of Rs.3,445.73 million suggests continued growth.
What stands out is that profitability improved steadily throughout this period regardless of the revenue dip: EBITDA Margin expanded every single period, from 2.20% (FY2023) to 3.00% (FY2024) to 4.67% (FY2025) to 5.98% (H1 FY2026), and PAT grew from Rs.60.94 million to Rs.93.05 million (up 52.69%) to Rs.203.75 million (up 118.97%) over the same window.
This margin expansion, achieved even in the year revenue fell, points to improving operating efficiency and product mix (a rising share of higher-value Master Alloys of Copper, up from 17.98% of revenue in FY2023 to 22.14% in FY2025) rather than mere volume growth. According to the CareEdge Report commissioned for this Offer, the company achieved the highest PAT margin among its identified listed peers in Fiscal 2025, a claim borne out in the peer comparison in Section 5.
Return on Capital Employed followed a similar improving arc, from 17.71% (FY2023) to 27.01% (FY2025), before moderating to 19.16% (H1 FY2026, not annualised, broadly consistent with an annualised run-rate close to FY2025 levels). Leverage has stayed modest throughout, with Debt to Equity ranging between 0.21x and 0.40x across all periods shown, comfortably below both listed peers discussed in Section 5.
Copper Cathodes remain the single largest revenue driver at 49.34% of Fiscal 2025 revenue (ranging 44.29% to 56.30% across all periods), a concentration the company itself flags as a risk factor, though it is partially offset by a genuinely diversified secondary product base spanning Master Alloys of Copper and various Copper Related Products.
Balance Sheet and Cash Flow
Item | Sep 2025 (Rs. Mn) | FY2025 (Rs. Mn) | FY2024 (Rs. Mn) | FY2023 (Rs. Mn) |
Total Assets | 2,702.03 | 2,513.55 | 1,812.72 | 1,656.46 |
Total Borrowings | 374.07 | 267.32 | 254.97 | 112.70 |
Inventories | 808.96 | 759.73 | 299.83 | 252.70 |
Trade Receivables | 543.79 | 305.05 | 229.63 | 308.66 |
Cash and Cash Equivalents | 15.55 | 109.96 | 16.23 | 26.10 |
Net Cash from Operating Activities | (308.78) | 185.03 | 193.62 | 374.57 |
Net Cash from Investing Activities | (45.24) | (92.27) | (340.04) | (388.81) |
Net Cash from Financing Activities | 269.89 | 0.97 | 136.56 | 21.36 |
Total assets grew from Rs.1,656.46 million (FY2023) to Rs.2,702.03 million (September 2025), broadly tracking the company's capacity expansion (Unit III commenced operations in 2023) and rising inventory levels needed to support growth. Total borrowings rose from Rs.112.70 million (FY2023) to Rs.374.07 million (September 2025), still leaving the company comfortably within its low Debt to Equity range.
The most notable item in the cash flow statement is a negative operating cash flow of Rs.308.78 million in the H1 FY2026 stub period, a reversal from three consecutive years of positive operating cash flow (Rs.374.57 million, Rs.193.62 million and Rs.185.03 million in FY2023, FY2024 and FY2025 respectively); the company attributes this to a build-up in trade receivables (which nearly doubled from Rs.305.05 million at FY2025 year-end to Rs.543.79 million by September 2025) alongside rising inventories, consistent with the company's own disclosed risk factor on the volatility of its working-capital cash flows.
Investing cash flow has been negative in every period shown, reflecting ongoing capacity investment, and is expected to continue given the proposed Unit III expansion funded by this Offer.
How Does It Compare to Peers?
The DRHP discloses two listed industry peers in non-ferrous metal recycling and manufacturing: Jain Resources Recycling Limited and Bhagyanagar India Limited. Figures below are FY2025; P/E is based on closing market price as of March 20, 2026 divided by Diluted EPS.
Company | Revenue FY25 (Rs. Mn) | EPS (Rs.) | P/E (x) | RoNW (%) | NAV/Share (Rs.) |
Gujarat Victory Forgings Limited (Our Company) | 6,076.50 | 3.35 | [TBD] | 23.42% | 12.90 |
Jain Resources Recycling Ltd. | 71,257.68 | 7.16 | 61.62 | 31.56% | 21.87 |
Bhagyanagar India Ltd. | 16,256.05 | 4.38 | 33.30 | 6.76% | 64.82 |
Gujarat Victory Forgings is by far the smallest of the three by revenue scale, at roughly one-twelfth of Jain Resources Recycling's Rs.71,257.68 million and well under half of Bhagyanagar India's Rs.16,256.05 million.
Despite this, the DRHP's extended KPI comparison (covering profitability and leverage metrics beyond the standard peer table above) shows the company leading on several efficiency measures for Fiscal 2025: PAT Margin of 3.35% versus Jain Resources' 3.13% and Bhagyanagar's 0.86%; Return on Capital Employed of 27.01% versus Jain Resources' 23.44% and Bhagyanagar's 7.37%; and Debt to Equity of just 0.32x versus Jain Resources' 1.28x and Bhagyanagar's 1.33x.
Jain Resources Recycling does lead on RoNW (31.56% versus the Company's 23.42%) and trades at a materially higher P/E (61.62x versus Bhagyanagar's 33.30x, industry average 47.46x), likely reflecting its much larger scale.
Since the Offer Price and hence Gujarat Victory Forgings' own P/E remain undetermined ([TBD]), the ultimate valuation attractiveness relative to this peer set cannot yet be assessed, but on a same-size-adjusted profitability and leverage basis, the Company's underlying metrics compare favourably with both larger peers.
Key Risks to Know Before Applying
l Revenue is heavily concentrated in a single product: Copper Cathodes contributed 49.34% of revenue in FY2025 (ranging 44.29% to 56.30% across all periods shown). Any adverse development specific to the copper cathode market, whether pricing, demand, or competitive, would disproportionately affect the business, notwithstanding the company's secondary product diversification.
l Operations depend on a single copper extrusion machine for 5 of the company's 9 products (approximately 19% of FY2025 revenue combined), and the company has no formal maintenance agreement for this machinery. Any breakdown or extended downtime could directly disrupt production and revenue for these specific products.
l Operating cash flow turned sharply negative in H1 FY2026 (Rs.308.78 million negative), reversing three consecutive years of positive operating cash flow, driven by trade receivables nearly doubling from Rs.305.05 million to Rs.543.79 million in just six months. This is a recent and unproven reversal that investors should watch for signs of recurrence.
l Revenue has been volatile rather than steadily growing: it declined 6.28% from FY2023 to FY2024 before recovering with 18.88% growth to FY2025, reflecting the company's dependence on confirmed customer orders placed on a purchase-order basis (no long-term supply or offtake agreements with customers or suppliers) and exposure to copper price and scrap availability cycles.
l Some Promoter Group members (not the direct Promoters of the Company) were named in a SEBI proceeding relating to alleged creation of artificial trading volumes through reversal trades in illiquid stock options of an unrelated listed company (Jammu Pigments Limited) between 2014 and 2015. The matter was settled via SEBI settlement orders and an adjudication penalty (aggregating a modest amount) in 2023, and did not involve the Company's own business or operations, but represents a governance-adjacent disclosure investors should be aware of.
l Operations and sales are geographically concentrated: Western India (principally Gujarat, where both manufacturing units are located) accounted for 86.47% of domestic revenue in FY2025, and the recent capacity expansion is being undertaken at the same existing site, concentrating operational risk in a single region.
l Customer concentration is meaningful, if not extreme: the top 10 customers contributed 74.78% of revenue in FY2025 (top single customer 21.64%), and the number of repeat (over 5-year) customers has declined each year, from 33 (FY2023) to 27 (FY2024) to 25 (FY2025) to 23 (H1 FY2026), even as revenue from repeat customers remains a majority of the total.
l No formal long-term agreements exist with either customers or raw material suppliers; the business operates on a purchase-order basis in both directions, exposing it to potential loss of business or supply disruption without contractual protection.
l The company has pending tax litigation of Rs.99.48 million against the Company and Rs.45.01 million against the Promoters (six matters), along with a Rs.1.00 million matter initiated by a Director; none are individually large relative to the company's scale but collectively represent an open contingency.
l As of the DRHP date, no purchase orders have been placed for any of the Rs.217.39 million of plant and machinery required for the proposed Unit III capacity expansion, creating timing and cost-overrun risk for the largest identified use of Fresh Issue proceeds.
l The Company recognised a one-time, non-recurring gain of Rs.45.07 million in H1 FY2026 from losing control of its Zambian associate, Buntingwa Resources Limited; investors should treat this as a non-operating item rather than a recurring source of profit.
l The General Corporate Purposes allocation is capped only as a percentage (25% of Gross Proceeds) rather than disclosed as an absolute amount, and since both the Fresh Issue and total Net Proceeds are share-count based rather than fixed in rupee terms, the ultimate size of this allocation is doubly dependent on the eventual Offer Price.
Positives to Note
l Highest PAT margin among identified listed peers in Fiscal 2025 (3.35% versus Jain Resources Recycling's 3.13% and Bhagyanagar India's 0.86%), per the CareEdge Report, despite being the smallest of the three companies by revenue.
l Consistently improving profitability regardless of revenue trajectory: EBITDA Margin expanded every period from 2.20% (FY2023) to 5.98% (H1 FY2026), and PAT grew 52.69% (FY2023 to FY2024) and a further 118.97% (FY2024 to FY2025).
l Best capital efficiency and lowest leverage among its disclosed peer set: Return on Capital Employed of 27.01% (FY2025) versus 23.44% and 7.37% at the two listed peers, and Debt to Equity of just 0.32x versus 1.28x and 1.33x at those peers.
l External validation of financial discipline via a BWR A-/BWR A2 (long-term/short-term) credit rating from Brickwork Ratings for Fiscal 2025.
l Diversified, de-risked customer and geographic footprint: 176 customers across 15 Indian states and union territories plus exports to 5 countries, with top-10-customer relationships averaging 6.3 years, and a genuinely varied 9-product portfolio spanning three product categories rather than dependence on a single item.
l Clear, already-underway demand validation for the proposed capacity expansion: Unit III utilisation climbed to the 81% to 90% range between October 2025 and February 2026 following a quality upgrade (steam washing achieving 99.99% purity) and BIS certification, ahead of the capacity increase this Offer will help fund.
l Experienced, multi-generational promoter leadership with over two and a half decades of average industry experience, operating in what the CareEdge Report describes as a high entry barrier industry, supported by Gujarat's established position as India's largest copper cathode and copper wire producing state.
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