Maiden Forgings IPO subscription is opening up on 23rd March 2023 till 27th March 2023. According to the prospectus, the IPO consists of a fresh issue of 3,784,000 equity shares of ₹10 face value. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. The retail allocation is not less than 35% of the total size.
Maiden Forgings IPO – The Company Business Description
Incorporated on February 11, 2005, Maiden Forgings is engaged in the manufacturing and sales of ferrous metal products including steel bright bars, wires, profiles, and ground bars.
The company manufactures diversified products in a range to include specialized products and customized/tailor-made solutions.
- The company has three manufacturing plants, all located in Ghaziabad, Uttar Pradesh, India.
- The manufacturing capacity of these plants is 50,000 tons per annum.
- In 2022, the Company installed a new dedicated production line for manufacturing collated pneumatic nails as a part of a forward integration strategy.
- Supplies to over 450 B2B customers including Top Tier-I & Tier-II suppliers of major two-wheeler and four-wheelers manufacturers.
- Manufactures different types of ferrous metal products including carbon steel, stainless steel, and alloy steel, mainly in the form of drawn products like bright bars, wires, profiles, and ground bars.
- Maiden Forgings is planning to expand into super alloys and other specialized through backward & forward integration.
- The products are used across industries like automobiles, engineering, infrastructure, hardware, utensils, etc.
Maiden Forgings Limited Founders and Leadership team
Late Shri Sanjay Garg is the founder of the Company in 2005.
Mr. Nishant Garg joined the company in 2011. He is one of the promoters and managing director of the company. He holds 41,70,600 Equity Shares, representing 39.99% of the pre-issue in the company. He is a Master’s in Business Administration from Amity University with 11 years of experience in business now.
Ms. Nivedita Garg is one of the promoters of the Company and is the chairman and Whole-time Director of the Company. She holds 62,56,800 Equity Shares in the company.
Maiden Forgings Limited Revenue and Profit
Maiden Forgings has recorded strong revenue from operation for FY2022 that reached Rs. 21,050.98 lakhs from Rs. 19,923.61 lakhs in FY 2021. For the Period ended Dec 31, 2022, the company registered total revenue of Rs. 16,381.04 lakhs. The profit after tax has increased significantly to reach Rs. 801.51 lakhs on Dec 31, 2022, from Rs. 213.94 lakhs in FY 2022.
Maiden Forgings IPO Review : Financial Snapshot
| All amounts in INR Lakhs (Year ended March 31) | FY 2020 | FY 2021 | FY 2022 | By December 2022 |
| Revenue Operation | 20412.44 | 19923.61 | 21050.98 | 16351.66 |
| Total Income | 20440.37 | 19937.49 | 21083.72 | 16381.04 |
| Profit After Tax | 165.95 | 168.94 | 213.94 | 801.51 |
| Earnings Per equity Share-Diluted | 3.57 | 3.24 | 4.10 | 7.69 |
| Net Cash from Operating Activities | 264.29 | -42.96 | -569.33 | 509.62 |
| Debt-Equity Ratio | 0.73 | 0.65 | 0.66 | 0.63 |
| Return on Net worth (%) | 7.77 | 5.83 | 6.87 | 20.48 |
| Return on Equity Ratio (%) | 7.77 | 5.83 | 6.87 | 20.48 |
| Return on Capital employed (%) | 19.61 | 19.17 | 16.97 | 25.79 |
Objective Behind the Maiden Forgings IPO
- Consolidation and expansion of the manufacturing facilities
- Working Capital and General Corporate Purpose
Maiden Forgings IPO: Do you invest?
- Maiden Forgings Limited focuses on increasing the production of higher-value add products through backward & forward integration.
- The company is planning to install a 450 TPA Induction Wire plant and a 250 TPA Collated Pneumatic Nail Plant (2nd Line).
- However, the net cash flow of the company is negative for two years (FY2021 and FY2022) mentioned in the financial statement.
- There is strong demand for this product in India and currently is imported. This may be a game changer for this company if it can maintain import quality.
- This business is a capital-intensive business, hence is not easy for a new entrance to establish. Once the company established itself, it can gain and utilize the learning curve.
- However, the metal sector is cyclical so one needs to take risk of investing in this sector.
- Again, Global growth is forecast slow during 2023 and 2024, with a slowdown in Auto Industries.
- However, the Indian economy is fundamentally strong and China opening up may be helpful to this industry.
- Looking at the financials and factors mentioned above, I would prefer to Invest in this SME IPO at the moment for the long term.
Maiden Forgings IPO Details
| Maiden Forgings IPO Details | Maiden Forgings IPO Date, Price and other details |
| Maiden Forgings IPO Date | Mar 23, 2023 to Mar 27, 2023 |
| IPO Price | ₹60 to ₹63 per share |
| IPO Allotment date | Mar 31, 2023 |
| Refunds Initiation date | Apr 03, 2023 |
| Credit of Shares to Demat Account | Apr 05, 2023 |
| IPO Listing Date | Apr 06, 2023 |
| Offer for Sale | Nil |
| IPO Issue Size (Fresh Issue) | 3,784,000 shares of ₹10 (aggregating up to ₹23.84 Cr) |
| Minimum bid (lot size) For retail investor | 1 lot of 2000 shares Investment of ₹126,000 |
| Maximum bid (lot size) For retail investor | 1 lot of 2000 shares Investment of ₹126,000 |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| Minimum bid (lot size) HNI investor | 2 lot of 2000 shares (4000) Investment of ₹252,000 |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Face Value | INR 10 per share |
| Listing on | BSE SME |
| Promoters | Mr. Nishant Garg and Ms. Nivedita Garg are the Promoter |
Maiden Forgings IPO: Lead Managers and Contact
| Contact Details | Maiden Forgings IPO Lead Managers |
| Maiden Forgings Limited B-5, Arihant Tower, Block D Market, Vivek Vihar, East Delhi, New Delhi – 110092 Phone: +011-44796732 Email: cs@maidenforgings.in Website: https://maidenforgings.in/ | Share India Capital Services Pvt. Ltd. Address: A-15, Sector-64, Noida – 201301, UP, India. Tel No.: +91-0120-4910000 Email: anand.srivastava@shareindia.co.in |
Maiden Forgings IPO Allotment Status
Maiden Forgings IPO Allotment status will be available on Maashitla Securities Pvt. Limited. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Tel No: +91-11-45121795-96; Contact Person: Mr. Mukul Agrawal; Email: mukul@maashitla.com
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