Metalic Technoforge
- Metalic Technoforge is coming out with an initial public offering (IPO) of 64,88,000 shares in a price band of Rs 72-77 per equity share.
- The issue will open on July 21, 2026 and will close on July 23, 2026.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 7.20 times of its face value on the lower side and 7.70 times on the higher side.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance officer for the issue is Parul Wadhawan.
Profile of the company
The company is engaged in the business of manufacturing of closed die forged and precision machined components. Its product portfolio comprises a wide range of complex and safety critical forged and precision machined products, including big rings, small rings, ball studs, gear blanks with broaching, gears, coupling assemblies and other critical components catering to diverse end-use industries. The company primarily serve domestic and global original equipment manufacturers (OEMs) across automotive and non-automotive industries. In automotive sector, its OEM customers include manufacturers of automobiles, tractors and commercial vehicles, and in non-automotive sector, its OEM customers include manufacturers of agricultural equipment, hydraulic equipment, construction machinery and general engineering products.
Its operations include die manufacturing, forging, heat treatment, shot blasting, precision machining, testing and quality assurance processes. Its products are manufactured using primary raw materials such as carbon steel, alloy steel and stainless steel, as well as non-ferrous metals including aluminum, brass and copper, depending on customer specifications and application requirements. The company’s focus on delivering quality products to customers is supported by adherence to internationally recognized standards and management systems. It holds certifications including IATF 16949 for the manufacture of forged and machined metal components, ISO 14001:2015 for environmental management systems, ISO 45001:2018 for occupational health and safety management systems, PED-2014/68/EU & AD 2000 W0 for pressure equipments manufacture and ZED Bronze Certificate.
Proceed is being used for:
- Funding of capital expenditure requirements of the company towards setting up of the proposed manufacturing unit IV and upgradation of existing units at manufacturing facility in Rajkot, Gujarat
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company
- General corporate purposes
Industry overview
India has emerged as the fastest-growing economy in the world in recent years. Rising incomes, higher infrastructure spending, and supportive manufacturing incentives have together accelerated the automobile sector, making it a critical pillar of India’s growth story. The two-wheeler segment, driven largely by the expanding middle class, continues to dominate the market, with sales reaching 19.6 million units in FY25. This surge in demand has also encouraged the expansion of original equipment and auto component manufacturers, helping India build strong expertise in this space and enhancing global demand for Indian vehicles and components.
India’s auto components industry has significantly expanded its market share, driven by rising automobile demand from the growing middle class and strong global exports. The sector has attracted both Indian and international players and is broadly classified into organised and unorganised segments. While the unorganised sector primarily caters to the aftermarket with low-value items, the organised sector focuses on supplying high-value precision instruments to Original Equipment Manufacturers (OEMs). India’s automobile production further highlights the scale of demand that supports the component industry. In FY26 (AprilSeptember), domestic sales stood at 1,02,36,639 units for two-wheelers, 20,51,082 units for passenger vehicles, 4,63,502 units for commercial vehicles, and 3,94,450 units for three-wheelers. In FY26 (April-September), the total production of Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers a Quadricycle was 1,65,34,997.
The rapidly globalising world is creating new opportunities for the transportation industry, particularly with the shift towards electric, electronic, and hybrid vehicles that are seen as more efficient, safe, and reliable. Over the next decade, this transition will open new verticals for auto component manufacturers, supported by strong government policy measures. The Indian government has already introduced production incentives and is investing heavily in electric vehicle (EV) infrastructure, including the exemption of customs duties on capital goods and machinery used for producing lithium-ion cells.
Pros and strengths
Diversified product portfolio: The company is engaged in the manufacturing of forged and precision machined components catering to a wide range of automotive and non-automotive industries, including farming equipment, construction machinery, hydraulic applications, commercial vehicles, and general engineering industries. It manufactures a variety of products such as gear components, transmission shafts, forged and machined components, hydraulic components, and other general engineering components, which are supplied to customers across different industry segments within India and in overseas market as well.
Quality assurance and control: To ensure compliance with quality standards and customer requirements, the company has implemented a quality control mechanism. It examines the products at multiple stages of the manufacturing process to ensure that there are no defects from previous stages. The company has quality control department and testing lab that offers metallurgical and metrological testing capabilities for raw material, in-process material, and finished components. Further its manufacturing facility has been accredited with, ISO 14001:2015 for environmental management systems and ISO 45001:2018 for occupational health and safety management systems. It also holds IATF 16949 certifications for the manufacture of forged and machined metal components and ZED Bronze Certificate under MSME Sustainable (ZED) Certification scheme.
Long-standing relationship with customers: Its growth has been supported by repeat orders from existing customers as well as the addition of new customers across different industry segments. It continues to focus on maintaining long-term relationships with its customers by supplying products as per their specifications and requirements. The company supplies forged and precision machined components to customers operating in industries such as automotive, farming equipment, construction machinery, hydraulic applications, commercial vehicles and general engineering. With the addition of gear manufacturing capabilities, it has further expanded its product offerings, which has also helped it diversify its customer base. It intends to continue strengthening relationships with its existing customers while also focusing on acquiring new customers in domestic and export markets.
Risks and concerns
Heavy dependence on key domestic markets: A significant portion of its domestic revenue is derived from customers located in Gujarat, Maharashtra and Uttar Pradesh which accounted for 62.45%, 59.22%%, and 78.70% of its revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. These regions also represent highly competitive markets for its products, with the presence of several established and regional players operating in same industry and manufacturing similar products. Competitive pressures may intensify due to aggressive pricing, design specifications, availability of low-priced alternatives Such competition may also adversely affect its ability to maintain pricing, volumes and margins in these markets. Any adverse developments in these regions may materially and adversely affect its business, financial condition, results of operations and cash flows.
High reliance on export revenue: The company’s exports its products to various countries and its revenue from customers outside India represented 35.40%, 37.72%, and 18.57%, of the total revenue from operations for the financial years ended March 31, 2026, 2025 and 2024, respectively. A substantial part of its revenue is derived from exports to select international markets. The scale and concentration of its export revenues expose it to risks arising from adverse economic, regulatory, political and foreign exchange developments in the countries to which it exports. Any decline in demand in these markets or its inability to expand and diversify its export base could adversely affect its business, results of operations and financial condition.
Significant dependence on top customers could adversely impact revenue: A significant portion of the company's revenue from operations is derived from its top 10 customers, which accounted for 64.61%, 67.82%, and 79.76% of its revenue from operations for the financial years ended March 31, 2026, 2025, and 2024, respectively. Such major revenue from limited customer exposes it to customer concentration risk and the loss of one or more such customers or a material reduction in business from them, could have an adverse impact on its revenues, profitability and cash flows. These customers typically place orders based on specific design preferences, pricing expectations, quality requirements, delivery timelines, product consistency and reliability of supply. Any inability to meet these expectations on a consistent basis may adversely affect its relationships with such customers. Its inability to retain repeat customers, expand its new customer base or manage customer credit risk effectively could materially and adversely affect its business, results of operations, cash flows and financial condition.
Outlook
Metalic Technoforge is engaged in the business of Manufacturing of Transmissions Parts, Hydraulic Parts, Construction Industry, Shafts, General Engineering, Material Handling, Mining Parts, Gears, Diverse Applications, among others. The company primarily serve domestic and global original equipment manufacturers across automotive and non-automotive industries. On the concern side, it depends on a limited number of suppliers for its raw materials and the absence of long-term contractual arrangements with such suppliers exposes it to supply, quality and pricing risks that could adversely affect its business and financial performance. Further, its business is dependent and will continue to depend on its manufacturing facility, and it is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on its business, financial condition and results of operations.
The company is coming out with a maiden IPO of 64,88,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 72-77 per equity share. The aggregate size of the offer is around Rs 46.71 crore to Rs 49.96 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations has increased by 28.47% from Rs 7,437.22 lakh in Fiscal 2025 to Rs 9,554.74 in Fiscal 2026. The company reported a net profit of Rs 1,236.44 lakh In Fiscal 2026, marking a significant increase from Rs 902.81 lakh in Fiscal 2025, reflecting rise of 36.95%.
Meanwhile, the company aims to meet the growing requirements of its existing customers while also expanding its customer base by increasing its geographical presence. Currently, it serves customers across various states in India. Expanding its presence into additional regions will allow it to access larger markets and strengthen its relationships with B2B customers, enabling it to better understand and address their requirements. At present, a significant portion of its domestic sales is derived from the states of Gujarat, Maharashtra and Uttar Pradesh. In addition to its domestic operations, it also intends to expand its presence in international markets. The company plans to build on its existing export activities and explore opportunities to enter new countries. It also intends to tailor its products to meet the specific requirements of customers in different markets. At present, a significant portion of its export sales is derived from the countries like Germany, Finland, and United States of America.
