Metalic Technoforge IPO (21-23 July) Analysis

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Updated: 2 hours ago

SME IPO Analysis | NSE Emerge Platform | 100% Book Built Issue (Fresh Issue Only) | Regulation 229(2)

Based on Red Herring Prospectus dated July 15, 2026 | Closed Die Forging and Precision Machining | Rajkot, Gujarat

Metalic Technoforge Limited (incorporated in 2016, converted to a public limited company ahead of this listing) is a Rajkot, Gujarat-based manufacturer of closed die forged and precision-machined components. Its registered office is at Sr. No.-129/1 P4, Plot No.5 and 6, Padavala Main Road, Village Padavala, Veraval (Shapar), Rajkot 360024, Gujarat. Its website is www.metalictechnoforge.com. Its CIN is U28999GJ2016PLC093975.

The Promoters are Mr. Gajipara Keyur Dhirajlal (Managing Director), Mr. Trambadiya Dhaval Vrajlal (Whole Time Director), Mr. Vadodariya Satish Rameshbhai, Mr. Kapadiya Vipul K, Mr. Gajipara Ronakkumar Mansukhbhai, Mr. Rupapara Jay Rameshbhai, and Ms. Ekta Satish Vadodariya, seven individuals reflecting a closely-held, multi-family promoter group. Chief Financial Officer is Sanjay Valjibhai Pitroda; Company Secretary and Compliance Officer is Parul Wadhawan.

The company's product portfolio spans big rings, small rings, ball studs, gear blanks with broaching, gears, coupling assemblies and other critical, safety-relevant components, serving automotive, industrial, hydraulic and construction machinery end-markets. In Fiscal 2026, Gears and Transmission Components contributed 46.23% of revenue, General Engineering Components 31.82%, Hydraulic Application Components 9.38%, and Construction Machinery Components 7.16%.

Manufacturing takes place across four units at a single Rajkot facility spanning 5,968.51 square metres: Unit I (forging, heat treatment, shot blasting, and quality control, also the registered office), Unit II (machining, gear finishing, storage and dispatch), Unit III (raw material storage, cutting, and die manufacturing), and Unit IV, currently vacant land earmarked for a new forging line funded by this Offer.

As of Fiscal 2026, installed forging and machining capacity stood at approximately 6,800 metric tonnes per annum, with actual production of 6,135.10 metric tonnes, a capacity utilisation of 90.22%. The company exports to multiple countries, with Germany the single largest export market (20.61% of Fiscal 2026 revenue), alongside Finland, the United States, Italy, China, Turkey and other markets; total export revenue was 35.40% of Fiscal 2026 revenue. Domestically, Gujarat, Maharashtra and Uttar Pradesh together accounted for 62.45% of Fiscal 2026 revenue. The company's financial year ends March 31.

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Key Basics

This is an SME IPO listing on NSE Emerge, not the main board, made under Regulation 229(2) and 253(1) of SEBI ICDR Regulations. The Issue is a 100% Book Built Issue comprising solely a Fresh Issue of up to 64,88,000 Equity Shares; there is no Offer for Sale, so none of the seven Promoters are monetising any part of their holding through this Issue. Like several other companies analysed in this series, this is a live Red Herring Prospectus: the bidding window opens July 21, 2026, the day immediately following the date of this analysis, and closes July 23, 2026.

Document Type	Red Herring Prospectus (RHP) dated July 15, 2026. This Offer is live: Anchor Investor Bidding July 20, 2026; Bid/Issue Opens July 21, 2026; Bid/Issue Closes July 23, 2026.
Platform	Emerge Platform of NSE (‘NSE Emerge’), not the main board. In-principle approval received from NSE Emerge (letter dated July 2, 2026). This Issue is made under Regulation 229(2) and 253(1) of SEBI ICDR Regulations.
Issue Structure	100% Book Built Issue comprising solely a Fresh Issue of up to 64,88,000 Equity Shares of face value Rs.10 each. There is no Offer for Sale; the entire Issue is a Fresh Issue.
Face Value	Rs.10 per Equity Share.
Promoters	Gajipara Keyur Dhirajlal (Managing Director), Trambadiya Dhaval Vrajlal (Whole Time Director), Vadodariya Satish Rameshbhai, Kapadiya Vipul K, Gajipara Ronakkumar Mansukhbhai, Rupapara Jay Rameshbhai, and Ekta Satish Vadodariya, a seven-person promoter group.
Personal Guarantees and Pledged Property	All Promoters have provided personal guarantees securing the Company's borrowings, and multiple Promoter and Promoter-relative-owned properties (industrial sheds and residential plots) have been pledged as security for Company loans.
Eligibility	Regulation 229(2) and 253(1) of SEBI ICDR Regulations (SME route).
Listing Exchange	NSE Emerge (SME Platform of NSE). Designated Stock Exchange: NSE.
BRLM	Smart Horizon Capital Advisors Private Limited (sole Book Running Lead Manager).
Registrar	Bigshare Services Private Limited. Contact: Aniket Seebag.
Bid/Issue Dates	Anchor Investor Bidding: July 20, 2026. Bid/Issue Opens: July 21, 2026. Bid/Issue Closes: July 23, 2026.
Listed Peers	Three listed peers: Amic Forging Limited, Tirupati Forge Limited, and Paramount Speciality Forgings Limited.

A notable structural feature of this Company, common among closely-held Gujarati manufacturing SMEs, is the extent of personal financial commitment behind it: all seven Promoters have personally guaranteed the Company's borrowings, and several family-owned properties (industrial sheds and residential plots) have been pledged as loan security. This reflects a business where the promoter family's own capital and creditworthiness remain deeply intertwined with the Company's, even as it moves toward public ownership.

How Will the IPO Money Be Used?

This is a Fresh-Issue-only Offer; the entire 64,88,000-share Issue accrues to the Company, and there is no Offer for Sale.

Object	Amount (Rs. Lakhs)	Details
Capex: New Unit IV and Upgradation of Units I-III	3,081.13	Civil and structural work (Rs.554.78 Lakhs) and machinery/equipment (Rs.2,526.35 Lakhs). Unit IV: a new forging line (400 Ton Servo-Operated Screw Press) raising installed forging capacity from 6,800 to 8,800 MTPA. Unit II: precision gear grinding (Hofler Viper 500W, Rs.786.45 Lakhs) and a Sealed Quench Furnace (Rs.660.88 Lakhs) to bring currently-outsourced heat treatment and Class 5/6 gear grinding in-house. Unit III: additional cutting and die-manufacturing equipment. Unit I: metallurgical and non-destructive testing equipment to reduce reliance on external test labs.
Repayment of Secured Borrowings	672.00	Full or partial repayment/prepayment of certain outstanding secured borrowings.
General Corporate Purposes	[TBD]	Capped at the lower of 15% of Gross Proceeds or Rs.1,000 Lakhs.
TOTAL IDENTIFIED OBJECTS	3,753.13	Fixed-rupee objects (capex and debt repayment) total Rs.3,753.13 Lakhs. No purchase orders have yet been placed for the proposed machinery. None of the Objects have been appraised by a bank or financial institution; project cost certified by an independent Chartered Engineer.

The capital expenditure Object here is unusually well-substantiated for an SME filing: rather than a generic capacity add, management has laid out a specific, unit-by-unit backward integration rationale. Unit IV addresses a genuine capacity constraint, evidenced by 90.22% utilisation of existing forging capacity in Fiscal 2026, by adding a dedicated new forging line.

The Unit II investment (the single largest line items, a precision gear grinding machine and a sealed quench furnace) is explicitly aimed at bringing currently outsourced processes, controlled-atmosphere heat treatment and Class 5/6 gear grinding, in-house, which management frames as both a cost and quality-control improvement rather than pure expansion.

The Rs.672 Lakhs debt repayment is a modest complement to this larger capex programme. As with most SME filings, no purchase orders have yet been placed for the proposed machinery, and General Corporate Purposes remains capped only as a percentage (the lower of 15% of Gross Proceeds or Rs.1,000 Lakhs) rather than a fixed number.

Financial Performance

Note: All figures in Rs. Lakhs, matching the RHP's own presentation convention. Financial periods: Fiscal 2026, Fiscal 2025 and Fiscal 2024 (years ended March 31); no interim stub period is presented in this RHP. Restated Financial Information certified by the Company's statutory auditors.

Revenue, Profitability, and Capacity

Metric	FY2026 (Rs. Lakhs)	FY2025 (Rs. Lakhs)	FY2024 (Rs. Lakhs)
Revenue from Operations	9,554.75	7,437.22	5,085.09
Revenue Growth % YoY	+28.47%	+46.28%	N/A
Export Revenue (% of Total)	35.40%	37.72%	18.57%
Germany Revenue (% of Total)	20.61%	19.01%	8.67%
Profit After Tax (PAT)	1,236.44	902.81	426.41
PAT Margin %	12.94%	12.14%	8.39%
Basic and Diluted EPS (Rs.)	7.12	6.93	7.17
Return on Net Worth (RoNW) %	37.00%	51.88%	55.21%
NAV per Share (Rs., post-bonus)	19.10	10.24	12.98
Manufacturing Capacity Utilisation	90.22%	N/A	N/A
Installed Capacity (MTPA)	6,800	6,800	6,800

Revenue grew from Rs.5,085.09 Lakhs (FY2024) to Rs.7,437.22 Lakhs (FY2025, +46.28%) to Rs.9,554.75 Lakhs (FY2026, +28.47%), while PAT grew even faster in percentage terms, from Rs.426.41 Lakhs to Rs.1,236.44 Lakhs over the same period, with PAT Margin improving from 8.39% to 12.94%.

Basic EPS, however, stayed roughly flat (Rs.7.17 to Rs.6.93 to Rs.7.12) despite this strong absolute profit growth, because Equity Share Capital expanded dramatically, from Rs.35.00 Lakhs (FY2024) to Rs.1,749.64 Lakhs (FY2026), reflecting a substantial bonus issue and capital restructuring ahead of listing; investors should read the EPS trend in that context rather than as a sign of stagnant earnings power. Return on Net Worth has declined sharply in percentage terms (55.21% to 51.88% to 37.00%, FY2024 to FY2026) for the same reason, an enlarged equity base, even though it remains far above the disclosed peer set (see Section 5).

The proposed capacity expansion is well-supported by current utilisation: installed forging and machining capacity of 6,800 metric tonnes per annum was utilised at 90.22% in Fiscal 2026, a level that leaves limited room for further growth without new capacity, directly motivating the Unit IV expansion described in Section 3. Export revenue grew from 18.57% of revenue (FY2024) to a peak of 37.72% (FY2025) before easing slightly to 35.40% (FY2026), with Germany the single largest destination throughout (20.61% of FY2026 revenue), and the Company does not currently hedge its foreign currency exposure.

Balance Sheet and Cash Flow

Item	FY2026 (Rs. Lakhs)	FY2025 (Rs. Lakhs)	FY2024 (Rs. Lakhs)
Equity Share Capital	1,749.64	100.00	35.00
Total Equity	3,341.57	1,740.15	772.33
Total Assets	9,208.61	6,509.87	3,366.88
Trade Receivables	2,628.43	1,468.22	1,065.36
Inventories	3,229.78	1,841.07	1,011.20
Total Borrowings	3,178.10	2,797.46	1,080.82
Contingent Liabilities	5.76	5.07	1.41
Net Cash from Operating Activities	(96.34)	187.17	204.81
Net Cash from Investing Activities	(411.73)	(1,757.78)	(574.47)
Net Cash from Financing Activities	512.63	1,569.14	379.30

Total Assets nearly tripled from Rs.3,366.88 Lakhs (FY2024) to Rs.9,208.61 Lakhs (FY2026), with trade receivables and inventories both growing faster than revenue (receivables from Rs.1,065.36 Lakhs to Rs.2,628.43 Lakhs; inventories from Rs.1,011.20 Lakhs to Rs.3,229.78 Lakhs). This working capital build is the direct cause of operating cash flow turning negative in Fiscal 2026 (Rs.96.34 Lakhs negative) despite the Company's strongest-ever annual profit, a reversal from positive operating cash flow of Rs.187.17 Lakhs (FY2025) and Rs.204.81 Lakhs (FY2024).

Total Borrowings grew from Rs.1,080.82 Lakhs (FY2024) to Rs.3,178.10 Lakhs (FY2026), broadly in line with the Company's growth investment, while contingent liabilities remain genuinely minimal (Rs.5.76 Lakhs, almost entirely pending TDS matters), a clean disclosure by the standards of this report series. The Company also carries a Rs.117.62 Lakhs capital commitment for machinery already on order, separate from the Objects of this Offer.

How Does It Compare to Peers?

The RHP discloses three listed industry peers in forging and precision engineering: Amic Forging Limited, Tirupati Forge Limited, and Paramount Speciality Forgings Limited. Figures below are Fiscal 2026; P/E for peers is based on closing market price as of July 13, 2026 divided by Basic EPS.

Company	Face Value (Rs.)	EPS (Rs.)	P/E (x)	RoNW (%)	NAV/Share (Rs.)
Metalic Technoforge Limited (Our Company)	10.00	7.12	[TBD]	37.00%	19.10
Amic Forging Limited	10.00	26.78	66.91	13.31%	197.60
Tirupati Forge Limited	2.00	0.51	135.43	4.72%	10.53
Paramount Speciality Forgings Ltd.	10.00	2.16	14.93	7.57%	28.57

Metalic Technoforge's FY2026 RoNW of 37.00% is dramatically higher than all three listed peers, Amic Forging's 13.31%, Tirupati Forge's 4.72%, and Paramount Speciality Forgings' 7.57%, despite the Company's much smaller absolute scale and lower NAV per share (Rs.19.10 versus a peer range of Rs.10.53 to Rs.197.60).

The industry P/E range is wide (14.93x to 135.43x), and notably, the two higher-P/E peers (Amic Forging and Tirupati Forge) both carry meaningfully lower RoNW than Metalic Technoforge, suggesting the market may be pricing those peers on growth or scale expectations rather than current capital efficiency.

Since the Issue Price and hence Metalic Technoforge's own P/E remain undetermined ([TBD]), the ultimate valuation attractiveness relative to this peer set cannot yet be assessed, but the Company's combination of high current capital efficiency and a well-utilised, expanding manufacturing base is a distinctive starting point.

Key Risks

l Promoter Rupapara Jay Rameshbhai was, until his retirement effective July 10, 2026, just days before this RHP, a partner of M/s Vispan Traders, a partnership firm currently facing Goods and Services Tax proceedings alleging wrongful availment of Input Tax Credit and dealings involving alleged bogus invoices and fictitious entities. While these proceedings relate to the firm and not the Company, the Promoter could be required to participate in the ongoing regulatory process by virtue of his former association.

l The Company has filed a compounding application with the Registrar of Companies in respect of a past non-compliance with Section 185 of the Companies Act, 2013: during Fiscal 2023 and Fiscal 2024, while private, the Company extended loans to related entities (Vispan Traders and VG Metpro Private Limited) in which a then-director had an interest. The loans have since been fully repaid, but the compounding application remains under process, and there is no assurance regarding its outcome.

l Export revenue is significant (35.40% of Fiscal 2026 revenue) and concentrated in a single country, Germany (20.61% of Fiscal 2026 revenue), with no foreign exchange hedging in place; the Company also explicitly flags ongoing Gulf region geopolitical tensions as a risk to global shipping and trade flows relevant to its export operations.

l Domestic revenue remains concentrated in three states, Gujarat, Maharashtra and Uttar Pradesh, together contributing 62.45% of Fiscal 2026 revenue, and product revenue is concentrated in Gears and Transmission Components (46.23% of Fiscal 2026 revenue).

l Operating cash flow turned negative in Fiscal 2026 (Rs.96.34 Lakhs negative) despite the Company's strongest-ever annual profit, driven by sharp increases in trade receivables and inventories as the business scaled.

l All seven Promoters have provided personal guarantees securing the Company's borrowings, and multiple family-owned properties have been pledged as loan security, reflecting concentrated personal financial exposure tied to the Company's performance.

l Return on Net Worth has declined sharply in percentage terms (55.21% to 51.88% to 37.00%, FY2024 to FY2026), reflecting a much-enlarged post-bonus equity base rather than weaker underlying profitability; investors should not extrapolate the FY2024 level forward.

l The Company has ongoing sales, purchase, and job-work transactions with a Group Entity, M/s Siddheshwar Technoforge Private Limited, whose name closely resembles the Company's own and which operates in a related line of business; while disclosed, this relationship is worth independent scrutiny for potential conflicts of interest.

l No purchase orders have yet been placed for the machinery to be funded under the capital expenditure Object of this Offer.

l The Company's current ratio was below 1.0 times in Fiscal 2023, indicating relatively lower short-term liquidity at that time, though this position has since improved.

l The General Corporate Purposes allocation is capped only as a percentage (the lower of 15% of Gross Proceeds or Rs.1,000 Lakhs) rather than disclosed as an absolute amount, leaving a portion of Fresh Issue proceeds subject to management discretion at the time of listing.

l This is an NSE Emerge (SME Platform) listing, which typically has materially lower trading volumes than main board-listed shares.

Positives to Note

l Return on Net Worth of 37.00% (FY2026) dramatically exceeds all three disclosed listed peers (13.31%, 4.72%, and 7.57%), despite the Company's smaller scale, and notably exceeds even the two peers trading at much higher P/E multiples.

l Strong, consistent revenue and profit growth: revenue grew from Rs.5,085.09 Lakhs (FY2024) to Rs.9,554.75 Lakhs (FY2026), and PAT grew from Rs.426.41 Lakhs to Rs.1,236.44 Lakhs over the same period, with PAT Margin improving from 8.39% to 12.94%.

l A well-substantiated, unit-by-unit capital expenditure plan directly tied to a genuine capacity constraint (90.22% utilisation in Fiscal 2026) and a coherent backward-integration strategy, bringing currently outsourced heat treatment, precision gear grinding, and die manufacturing in-house, rather than speculative expansion.

l Genuinely diversified export markets across Germany, Finland, the United States, Italy, China, Turkey and others, even though Germany remains the single largest destination.

l Clean, minimal contingent liabilities (just Rs.5.76 Lakhs, almost entirely pending TDS matters), a favourable disclosure relative to several other companies in this report series.

l Proactive governance remediation: the Section 185 non-compliance has already been substantively resolved (loans fully repaid) and voluntarily regularised through a compounding application, alongside appointment of a dedicated Compliance Officer and Company Secretary.

l An integrated, largely in-house manufacturing model spanning forging, heat treatment, machining, and gear cutting and finishing at a single facility, a structural advantage over more fragmented, job-work-dependent peers of similar scale.