Kay Jay Forgings Limited IPO

IPO Details

• Open date: TBA
• Close Date: TBA
• Minimum Investment: To be updated
• Lot Size: TBA
• Price Range: TBA
• Listing: BSE, NSE
• Issue Size: ₹3,600 million (Fresh ₹3,000 million + OFS ₹600 million)
• Listing Date: TBA

IPO Timeline

• Bidding Start: TBA
• Bidding Ends: TBA
• Allotment Finalisation: TBA
• Refund Initiation: TBA
• Demat Transfer: TBA
• Listing: TBA

About Kay Jay Forgings Limited

Incorporated in 1983, Kay Jay Forgings Limited is a precision engineering company specializing in the integrated manufacturing of forged and machined components, primarily serving original equipment manufacturers in the automotive sector. The company also supplies components for farm equipment, mining machinery, and electronic home appliances. With over 37 years of experience, Kay Jay Forgings has a diversified portfolio of 286 products, including crankshafts, lower bracket assemblies, kick-starter lever assemblies, propeller shafts, door hinges, and steering yokes. The company is a leading supplier of forged crankshafts for two-wheeler OEMs in India, holding an estimated domestic market share of approximately 36% in Fiscal 2025.

Kay Jay Forgings Limited IPO Overview

Kay Jay Forgings Limited filed its DRHP with SEBI on March 30, 2026, for a book-built IPO aggregating up to ₹3,600 million, comprising a fresh issue of ₹3,000 million and an offer for sale (OFS) of ₹600 million. The company may consider a pre-IPO placement of up to ₹400 million. Net proceeds from the fresh issue will be utilized for funding capital expenditure towards setting up a new forging facility (₹1,188.03 million), a new machining facility, and a solar power plant; repayment/prepayment of certain borrowings (₹905.11 million); and general corporate purposes. The promoters hold 45,975,360 shares pre-issue. Lead manager: PL Capital Markets Pvt. Ltd. Registrar: Bigshare Services Pvt. Ltd. Listing on BSE and NSE. IPO dates, price band, and lot size are yet to be announced.

Kay Jay Forgings Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	[.] shares (agg. up to ₹360 Cr)
Fresh Issue	[.] shares (agg. up to ₹300 Cr)
Offer for Sale (OFS)	[.] shares of ₹5 (agg. up to ₹60 Cr)
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹5 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	4,59,75,360 shares
Shareholding post-issue	TBA

Kay Jay Forgings Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Kay Jay Forgings Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

 Kay Jay Forgings Limited IPO Valuation Overview

KPI Summary

KPI	Value
Earnings Per Share (EPS)	₹4.65
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	12.31%
Net Asset Value (NAV)	₹40.95
Return on Equity (RoE)	12.31%
Return on Capital Employed (RoCE)	12.46%
EBITDA Margin	9.74%
PAT Margin	4.77%
Debt-to-Equity Ratio	0.46x

 Objectives of the IPO Proceeds

The net proceeds from the Fresh Issue are intended to be utilised as follows:

Particulars	Amount (₹ in million)
Funding capital expenditure for proposed forging facility, machining facility, and solar plant	1,188.03
Repayment/prepayment of certain borrowings	905.11
General corporate purposes*	[●]

*To be determined upon finalisation of the Offer Price. General corporate purposes shall not exceed 25% of gross proceeds.

Kay Jay Forgings Limited Financials (₹ in million)

Particulars	30 Sep 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	4,155.77	3,826.31	3,481.78	3,272.00
Revenue from Operations	4,660.63	7,504.64	6,723.16	6,026.92
Profit After Tax	213.57	290.15	241.26	138.13
Reserves and Surplus	1,612.32	1,614.34	1,327.35	1,090.08
Total Borrowings	838.06	1,018.83	1,113.72	1,423.15
Total Liabilities	2,313.58	2,197.61	2,140.07	2,167.73

Financial Status of Kay Jay Forgings Limited

SWOT Analysis of Kay Jay Forgings Limited

Strengths and Opportunities	Weaknesses and Threats
Leading supplier of forged crankshafts for two-wheeler OEMs with ~36% domestic market share	Revenue concentration: top 5 customers contributed significant portion of revenue
Long-standing relationships with marquee customers like TVS Motor, Honda, Mahindra & Mahindra	Customer concentration: top 10 customers contributed 66.71% of H1 FY2026 revenue
Modern manufacturing facilities with 6 facilities across Ludhiana and Hosur	Geographic concentration with majority facilities in Punjab and Tamil Nadu
Backward-integrated manufacturing operations ensuring quality and supply reliability	Intense competition from larger players like Ramkrishna Forgings and Sansera Engineering
Diversified product portfolio of 286 products across automotive and non-automotive sectors	Majority revenue from automotive sector, vulnerable to cyclical slowdowns
Consistent track record of financial performance with PAT CAGR of 44.93% from FY23-FY25	Currency fluctuation risks affecting export revenue
Experienced promoters and skilled workforce of 3,469 employees	Rising raw material costs impacting margins
Global forging industry projected to grow from USD 100 billion to USD 131 billion by 2030	Export concentration in Hungary, France, and Germany
Indian automotive components market expected to reach USD 200 billion by 2026	Potential trade barriers or tariffs affecting exports

 

Kay Jay Forgings Limited IPO Strengths

Leading Supplier of Forged Crankshafts for Two-Wheeler OEMs with ~36% Market Share

Kay Jay Forgings is a leading supplier of forged crankshaft and crankshaft assemblies for two-wheeler OEMs in India, with an estimated domestic market share of approximately 36% in Fiscal 2025. The company’s strong position in the two-wheeler segment is supported by long-standing relationships with major OEMs including TVS Motor Company, Honda Motorcycle & Scooter India, and Bajajsons. This market leadership provides a stable revenue base and competitive moat.

Long-Standing Relationships with Marquee Customers and Track Record of Repeat Orders

Kay Jay Forgings has built enduring relationships with a diversified customer base spanning 44 customers, including TVS Motor, Honda Motorcycle & Scooter India, Mahindra & Mahindra, Bajajsons, Highway Roop Precision Technologies, and Narasipur Auto Components. Customers associated for more than ten years contributed 84.72% of revenue in H1 FY2026, reflecting strong loyalty and consistent product quality.

Modern Manufacturing Facilities with In-House Design and Sustained Focus on Enhancing Capabilities

Kay Jay Forgings operates six manufacturing facilities, comprising four in Ludhiana, Punjab and two in Hosur, Tamil Nadu, with an aggregate built-up area of approximately 46,795 square meters. The facilities are equipped with modern machinery including robotics equipment like robo welding machines, enabling quality production and cost efficiency. The company has consistently added new products, with 33 new products introduced in H1 FY2026.

Backward-Integrated Manufacturing Operations Enhancing Quality and Supply Reliability

Kay Jay Forgings operates a fully integrated manufacturing setup covering the entire production flow from raw material procurement to forging, machining, heat treatment, and assembly. This integration enables in-house processing of critical production stages, reducing reliance on third-party vendors and maintaining control over product quality, production scheduling, and process consistency, resulting in reliable supply to OEM customers.

Product Portfolio Tailored to Customer Requirements with Capability to Expand

Kay Jay Forgings has a diversified portfolio of 286 products, including crankshafts, lower bracket assemblies, kick-starter lever assemblies, propeller shafts, door hinges, and steering yokes. The company has consistently added new products over the years, with 33, 52, 27 and 57 new products introduced during H1 FY2026 and Fiscals 2025, 2024 and 2023, respectively, reflecting capability to develop application-specific products.

Experienced Promoters and Skilled Workforce

Kay Jay Forgings benefits from an experienced management team with knowledge of the precision components manufacturing industry. Promoter, Chairman and Managing Director Gopal Krishan Kothari has been associated with the company since 1983, providing strategic direction. Promoter and Executive Director Amit Kothari has been associated for over 29 years, overseeing the export division. As of September 30, 2025, the company had 3,469 skilled employees.

Other IPO Pages Linking

More About Kay Jay Forgings Limited

Kay Jay Forgings Limited, incorporated in 1983, has established itself as a precision engineering company with over 37 years of experience in the integrated manufacturing of forged and machined components.

Manufacturing Facilities

• Ludhiana, Punjab: Four facilities with integrated forging and machining operations
• Hosur, Tamil Nadu: Two facilities supporting southern India operations
• Aggregate built-up area: Approximately 46,795 square meters
• Proposed facilities: New forging and machining facilities in Ludhiana funded through IPO proceeds

Product Portfolio

• Total Products: 286 products as of September 30, 2025
• Key Products: Crankshaft and crankshaft assemblies, lower bracket assemblies, kick-starter and gear-shift lever assemblies, propeller shafts, door hinges, steering yokes, brake pedal assemblies, swing arm assemblies
• Sectors Served: Automotive (2W, 3W, 4W, CV, EV), farm equipment, mining machinery, consumables and durables
• New Product Additions: 33 in H1 FY2026, 52 in FY2025, 27 in FY2024, 57 in FY2023

Customer Base

• Total Customers Served: 44 customers
• Key Customers: TVS Motor Company, Honda Motorcycle & Scooter India, Mahindra & Mahindra, Bajajsons, Highway Roop Precision Technologies, Narasipur Auto Components
• Repeat Customers: Customers associated for >10 years contributed 84.72% of H1 FY2026 revenue
• Export Customers: 5 international customers across Hungary, France, Sweden, Germany, USA, and Brazil

Financial Highlights

• Revenue CAGR: 11.59% (FY2023-FY2025)
• PAT CAGR: 44.93% (FY2023-FY2025)
• EBITDA Margin: 9.53% (FY2025)
• PAT Margin: 3.87% (FY2025)
• RoCE: 18.98% (FY2025)

Credit Ratings

• Long-term: CARE A- (Stable)
• Short-term: CARE A2+

Industry Outlook

India’s automotive components and forging industry is poised for significant growth driven by increasing vehicle production, rising exports, and government initiatives promoting domestic manufacturing. According to a CARE Report cited in the DRHP, the global forging industry was valued at USD 100 billion in 2025 and is projected to expand to USD 131 billion by 2030, reflecting a CAGR of 6-8%.

Key Growth Drivers:

• Global Forging Market Growth: The automotive sector leads global forging demand with a 45.7% share in 2025, significantly outpacing other segments such as aerospace & defense (20.3%) and industrial machinery (17.6%). By 2030, the automotive sector’s share is projected to rise modestly to 46.4%.
• Global Machining Industry: The global machining industry is projected to expand at a CAGR of 6-8% between 2025 and 2030, with the automotive sector expected to grow from 36.9% in 2025 to 37.2% by 2030.
• India’s Emergence as a Critical Player: India is emerging as a critical player in the global automotive landscape, driven by its growing manufacturing base and rising domestic demand. Strong government support through PLI schemes and a skilled engineering workforce is positioning India as a hub for both traditional and next-gen mobility solutions.
• Shift to Lightweight Components: Regulatory pressure on emissions reduction, energy efficiency, and sustainability is accelerating the shift toward lightweight components across end-use industries, with aluminium and other lightweight materials increasingly replacing conventional steel.
• Global Supply Chain Diversification: The wind is shifting toward other Asian nations, including India, due to higher market potential and the availability of low-cost manufacturing options, encouraging localisation of critical components and capacity expansion.

Market Projections:

• The Indian auto component industry is expected to reach USD 200 billion by 2026 from USD 70.4 billion in 2022.
• China currently dominates global auto component manufacturing, but India is gaining share due to cost competitiveness and market potential.
• India is among the world’s largest forging hubs, supported by strong forging clusters in Tamil Nadu, Punjab, and Maharashtra.

How Will Kay Jay Forgings Limited Benefit

• Kay Jay Forgings is strategically positioned to benefit from the global forging industry growing from USD 100 billion to USD 131 billion by 2030 at 6-8% CAGR, with the automotive sector accounting for 45.7% of demand.
• The company’s leading position in two-wheeler crankshafts (36% domestic market share) positions it to capture growth in India’s two-wheeler market, the world’s largest, as urbanisation and disposable incomes rise.
• With the Indian auto component industry expected to reach USD 200 billion by 2026, Kay Jay Forgings’ established relationships with major OEMs like TVS Motor, Honda, and Mahindra provide a strong platform for growth.
• The company’s proposed expansion into lightweight aluminium forged and machined components aligns with the industry trend toward lightweighting driven by emission regulations and fuel efficiency demands.
• Kay Jay Forgings’ backward-integrated manufacturing operations ensure quality control and supply reliability, making it a preferred supplier for OEMs seeking to de-risk supply chains amid global diversification.
• The company’s proposed capacity expansion (16,800 MT/A forging capacity, 2,894,000 pieces/A machining capacity) positions it to capture increased demand from both domestic and export markets.
• With a PAT CAGR of 44.93% from FY2023 to FY2025 and improving debt-to-equity ratio of 0.63, the company has demonstrated financial discipline and profitability to support sustainable growth.

Peer Group Comparison

Name of Company	Face Value (₹)	Total Income (₹ in million)	Basic EPS (₹)	Diluted EPS (₹)	NAV (₹)	P/E Ratio	RoNW (%)
Kay Jay Forgings Limited	5	7,522.11	6.31	6.31	35.43	[●]	17.81%
Peer Group
Sansera Engineering Ltd	2	30,370.07	37.41	37.18	446.96	58.71	7.84%
Rolex Rings Ltd	1	11,832.66	6.39	6.39	393.67	18.53	16.23%
Ramkrishna Forgings Ltd	2	40,604.93	22.95	22.95	167.78	22.02	13.66%
Kalyani Forge Ltd	10	2,391.54	22.86	22.86	246.53	25.50	9.27%

Key Strategies for Kay Jay Forgings Limited

Capitalize on Industry Tailwinds Through Proposed Expansion

Kay Jay Forgings intends to set up a new forging facility and machining facility in Ludhiana, Punjab, using a portion of the Net Proceeds. The proposed forging facility will be on approximately 4,981.92 sq. m. of land, while the machining facility will be on approximately 3,620 sq. m. of land. Once commissioned, annualized forging capacity will increase by 16,800 MT/A and machining capacity by 2,894,000 pieces per annum, enabling the company to cater to increased demand.

Foray into Lightweight Aluminium Forged and Machined Components

Kay Jay Forgings intends to leverage its existing forging and machining capabilities to diversify into lightweight forged and machined components, with a focus on aluminium. Regulatory pressure on emissions reduction and energy efficiency is accelerating the shift toward lightweight components across end-use industries. In the automotive sector, aluminium components can help reduce vehicle weight, improve fuel efficiency, and support compliance with emission norms.

Leverage Industry-Leading Capabilities to Strengthen Customer Relationships

Kay Jay Forgings aims to strengthen relationships with existing customers, diversify its customer base, and increase wallet share by expanding into new segments. Customers associated for more than ten years contributed 84.72% of H1 FY2026 revenue. The company intends to continue expanding its customer base by leveraging relationships in India and globally, while capitalising on global supply chain diversification trends.

Reduce Operating Costs, Improve Operational Efficiencies and Deploy New Technologies

Kay Jay Forgings aims to offer quality products at optimal prices to maintain long-term customer relationships. The company intends to enhance operational efficiencies, exploit economies of scale by better absorbing fixed costs, and reduce other operating costs. The proposed solar power plant at Buttar Bakhua, Punjab, is intended to ensure continuous electrical supply while reducing operating costs.

Expanding Global Business Footprint

Kay Jay Forgings remains focused on broadening and diversifying its international customer base. Total export revenue was ₹436.19 million in H1 FY2026. The company plans to increase its business footprint by tapping into growing international demand for precision-forged and safety-critical machined components. It is focusing on markets in Europe, North America, and South America, supported by digital marketing and participation in international exhibitions.

Driving Sustainable Performance Through Environmental, Social and Governance Practices

Kay Jay Forgings is committed to conducting business responsibly, with a focus on resource efficiency, safe workplaces, and transparent business practices. The company has installed solar panels at Facility VI in Ludhiana and proposes to set up a dedicated solar power plant. It follows a “Reduce, Reuse and Recycle” approach and holds ISO 14001:2015 and ISO 45001:2018 accreditations for environmental and occupational health and safety management.

 FAQs

How can I apply for Kay Jay Forgings Limited IPO?

You can apply via HDFCSky using UPI-based ASBA (Application Supported by Blocked Amount).

What is the total issue size of the Kay Jay Forgings IPO?

The IPO is ₹3,600 million (₹360 crore), comprising fresh issue of ₹3,000 million and OFS of ₹600 million.

When is the Kay Jay Forgings IPO opening?

IPO dates including open, close, and listing are yet to be announced by the company.

On which exchanges will Kay Jay Forgings shares be listed?

The equity shares will be listed on both BSE and NSE.

How will Kay Jay Forgings use the IPO proceeds?

Proceeds will be used for capex for new facilities (₹1,188.03 mn), debt repayment (₹905.11 mn), and general corporate purposes.

Infographic Content

Kay Jay Forgings Limited IPO Highlights

Kay Jay Forgings is a precision engineering company with over 37 years of experience, specializing in forged and machined components for automotive OEMs, holding ~36% domestic market share in two-wheeler crankshafts.

• Offer Size:₹3,600 million (Fresh Issue ₹3,000 million; OFS ₹600 million)
• Purpose:Net proceeds will be used for capex for new forging and machining facilities (₹1,188.03 mn), debt repayment (₹905.11 mn), and general corporate purposes.
• Financials (FY March 2025):Revenue ₹7,504.64 million; Profit After Tax ₹290.15 million; EPS ₹6.31; RoNW 17.81%; PAT CAGR 44.93% (FY23-FY25)
• Listing:Mainboard IPO on BSE & NSE