A Gujarat-based closed die forging and precision machined components manufacturer plans to raise Rs 49.96 crore via the NSE SME platform.
Metalic Technoforge Ltd., a manufacturer of closed die forged and precision machined components, opens for subscription on July 21 with the issue closing on July 23. The company is listing on the NSE SME Emerge platform. All proceeds are a fresh issue.
What the Company Does
Metalic Technoforge manufactures forged and precision machined components used across the automotive, engineering, and industrial sectors, employing in-house capabilities in forging, machining, heat treatment, gear cutting, and inspection. The integrated manufacturing model reduces third-party dependency and improves quality control.
The company serves domestic and export customers and has been steadily scaling its revenue from Rs 51.50 crore in FY24 to Rs 97.98 crore in FY26. Over 80% of IPO proceeds are directed toward a new manufacturing facility — indicating the company is investing in future capacity rather than facilitating promoter exits.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 21, 2026 |
| Issue Closes | July 23, 2026 |
| Listing | NSE SME Emerge (July 28, 2026) |
| Price Band | Rs 72 – Rs 77 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 49.96 crore (100% Fresh Issue) |
| Lot Size | 1,200 shares (min 2 lots = 2,400 shares) |
| Min. Retail Investment | Rs 1,84,800 |
| BRLM | Smart Horizon Capital Advisors Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 51.50 | 75.64 | 97.98 |
| PAT | 4.26 | 9.03 | 12.36 |
| PAT Margin | 8.39% | 12.14% | 12.94% |
| RoCE | 37.01% | 31.88% | 30.38% |
Revenue has nearly doubled from FY24 to FY26 and profits have grown 2.9x, with PAT margins improving from 8.39% to 12.94%. Average EPS is Rs 7.07 and average RoNW is 45.00%. The P/BV is 4.03x on pre-IPO NAV of Rs 19.10.
At the upper band of Rs 77, the P/E is 14.92x on FY26 earnings and 20.48x on FY25 earnings. Listed peers trade at P/E multiples of 74.0x, 137.0x, and 14.7x — the comparison is noted as directional at best. One point of caution: while revenue and profits have grown, RoCE has been declining steadily (37.01% to 30.38%), indicating each rupee of incremental capital is generating somewhat lower returns.
BRLM Track Record: This is the 26th mandate from Smart Horizon Capital. Of the last 10 listings, 2 opened at a discount, 2 at par, and the rest with premiums ranging from 0.03% to 10% — an average track record with a narrow premium range.
Risks to Consider
The margin improvement from 8.39% to 12.94% in a forging segment where raw material costs (steel billets) are externally determined raises sustainability questions. RoCE has declined despite revenue growth, suggesting capital efficiency is weakening. The new manufacturing facility funded by this IPO will add fixed costs before new revenues materialise. Customer concentration in the automotive sector makes the business sensitive to OEM capex cycles.
Analyst View
Analysts note the company posted growth in its top and bottom lines, but that scaled-up margins from FY25 onwards raise eyebrows and concern over sustainability in a highly competitive and fragmented segment. The issue appears aggressively priced, note analysts, based on recent financial data.