A Gujarat-based forged and precision machined components manufacturer plans to raise Rs 24.03 crore via the BSE SME platform
Advance Technoforge Ltd., a manufacturer of forged steel and precision machined components in carbon steel, alloy steel, and stainless steel, opens for subscription on July 27 with the issue closing on July 29. The company is listing on the BSE SME platform through a fixed-price issue at Rs 95 per share. The issue has no QIB quota — it is split 50:50 between NII and retail.
What the Company Does
Incorporated in 2013 and headquartered in Gujarat, Advance Technoforge manufactures forged and precision machined components with specialised coatings and surface treatments for domestic and global OEMs. Its customers span automotive, oil and gas, railways, construction equipment, valves, pumps, earthmoving equipment, and hydraulic applications. The company performs in-house forging, machining, heat treatment, gear cutting, and inspection. As of June 30, 2026, it had 205 employees.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 27, 2026 |
| Issue Closes | July 29, 2026 |
| Listing | BSE SME (August 3, 2026) |
| Issue Price | Rs 95 per share (Fixed Price) |
| Face Value | Rs 10 |
| Issue Size | Rs 24.03 crore (100% Fresh Issue) |
| Lot Size | 1,200 shares (min 2 lots = 2,400 shares) |
| Min. Retail Investment | Rs 2,28,000 |
| QIB / NII / Retail | 0% / 50% / 50% |
| BRLM | Sun Capital Advisory Services Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
| Market Maker | JSK Securities & Services Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 51.16 | ~50.50 | 50.73 |
| PAT | — | 2.70 | 4.06 |
| PAT Margin | — | ~5.35% | ~8.00% |
Revenue has been essentially flat for three consecutive years, moving in a narrow band of Rs 50–51 crore. Despite this, PAT grew 51% in FY26 over FY25. This specific combination — static capacity utilisation, static top line, and a sudden jump in profits in the pre-IPO year — is precisely the pattern that independent analysts flag as indicative of inflated earnings designed to support a higher issue valuation. P/E at the fixed price of Rs 95 works out to approximately 21.16x on FY26 earnings and 31.77x on FY25 earnings — elevated for a flat-revenue business.
Risks to Consider
Three years of essentially flat revenue in a manufacturing business indicates either market saturation, capacity constraints, or competitive pricing pressure — and the PAT improvement arrived on the back of none of these being resolved. The high P/E multiple relative to a business with no demonstrated revenue growth is difficult to justify on fundamentals. The company also has a small post-IPO equity base, indicating a longer gestation period before mainboard migration. No QIB quota means no institutional validation of the pricing.
Analyst View
Analysts note the company posted almost static top lines for the reported periods, with static capacity utilisation. The boosted profits for FY26 appear inflated ahead of the IPO to fetch a fancy valuation, and the issue appears aggressively priced based on recent financial data, note analysts.