Munish Forge IPO Opens Tomorrow; Price Band Set at ₹91-₹96 Per Share

Ludhiana, September 29, 2025: Munish Forge Limited, a manufacturer of premium forged and cast components, is set to launch its ₹74 crore Initial Public Offering (IPO) on September 30, 2025. Bidding will remain open until October 3, 2025. The company has fixed the price band at ₹91-₹96 per share, with a lot size of 1,200 shares, translating to ₹1,15,200 at the upper price band. The shares are expected to be listed on NSE Emerge on October 8, 2025.

Munish Forge IPO comprises a fresh issue of 63.56 lakh equity shares, while 13.44 lakh shares will be offered for sale (OFS) by promoter Davinder Bhasin. Skyline Financial Services Pvt Ltd is the registrar, and Gretex Corporate Services Ltd is the book-running lead manager.

Established in 1986, Ludhiana’s Munish Forge Limited is a leading manufacturer of cast and forged components for defence, oil and gas, automotive, infrastructure, and construction sectors. The company has recently diversified into railway applications through casting and is additionally expanding its global presence in various geographies.

Munish Forge IPO Financial Performance

Munish Forge has delivered strong financial performance over the past three fiscal years. Operating revenue grew from ₹16,012.47 lakh in FY23 to ₹17,544.60 lakh in FY25. EBITDA rose sharply from ₹913.68 lakh in FY23 to ₹2,436.16 lakh in FY25, with margins improving from 5.71% to 13.89%. Profit after tax (PAT) increased significantly from ₹196.72 lakh in FY23 to ₹1,430.13 lakh in FY25, while PAT margin strengthened from 1.23% to 8.15%. The company’s net worth reached ₹6,740.29 lakh, with return on equity (RoE) at 21.22% and return on capital employed (RoCE) at 16.44%.

Munish Forge IPO Objective of the Issue

The IPO proceeds will be utilized for different purposes: ₹7.19 crore for plant and machinery acquisition and upgradation, civil work, and solar expansion; ₹9.70 crore for repayment or prepayment of loans; ₹30.00 crore for working capital needs; while the balance will be reserved for general corporate purposes.

Munish Forge IPO Key Strengths

Munish Forge, a 40+ year-old forging and casting company, supplies critical products such as tank track chains and bomb shells to the Indian Army. The company also has a strong export presence across the USA, UK, Canada, and Europe. Its diversified end-use portfolio spans defence, oil and gas, automotive, railways, and construction. High customer loyalty is reflected in repeat business, which contributed 82.5% of revenue in FY25.

Munish Forge IPO Key Risks

The company faces risks related to customer concentration, with the top 10 customers contributing around 78% of revenue in FY25, and supplier dependence, as the top 10 suppliers accounted for nearly 88% of raw material costs. High leverage, with borrowings of ₹6,020 lakh as of March 2025, past instances of regulatory non-compliances, and geopolitical or export-related risks, given that over 60% of revenue comes from exports, are additional areas of concern.

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