Gujarat-based auto component maker Advance Technoforge will launch its ₹24 crore IPO on July 27. The company will use funds for new machinery, working capital, and debt repayment. Investors should note the shares are set to list on the BSE SME platform on August 3.
Detailed Coverage
Advance Technoforge, a manufacturer of forged steel components based in Gujarat, has announced its initial public offering (IPO) scheduled to open for subscription on July 27, 2026. The company is looking to raise approximately ₹24.03 crore through the issuance of 25.29 lakh new equity shares. The price for this fixed-price issue has been set at ₹95 per share, resulting in a post-issue market valuation of around ₹86 crore.
The subscription period for the public will run for three days, closing on July 29, 2026. Following the closure, the company expects to finalize the share allotment by July 30, with trading on the BSE SME platform slated to begin on August 3, 2026. Sun Capital Advisory Services is acting as the sole lead manager for the issue.
Business Focus and Capital Spending
Founded in 2013, the company produces forged and machined components for diverse industries, including automotive, heavy machinery, and the oil and gas sector. The funds raised will be directed toward four main areas. A total of ₹7.19 crore is allocated for purchasing and installing new machinery to boost precision manufacturing capacity. Another ₹7.25 crore is designated to support working capital needs, which are essential for managing day-to-day operations and inventory.
Additionally, the company intends to use ₹2.4 crore of the proceeds to pay down existing debt, which may help in reducing interest costs. The remaining ₹3.59 crore is set aside for general corporate expenses. This capital spending plan reflects the company's intent to upgrade its technical capabilities while maintaining liquidity.
Financial Performance and Operational Context
In the most recent fiscal year ending March 2026, the company recorded a revenue of ₹50.04 crore, marginally lower than the ₹50.7 crore reported in the previous year. Despite the slight revenue decline, the company reported a significant improvement in profitability, with net profit rising to ₹4.06 crore from ₹2.7 crore the year prior.
The improvement in bottom-line performance was largely driven by operational efficiency, as reflected in the company's EBITDA, which grew by 51.6 percent to ₹7.7 crore. Consequently, the EBITDA margin improved notably to 15.33 percent, compared to 9.98 percent in the previous year. Investors should monitor whether the company can maintain these margin levels as it scales up its manufacturing operations using the new machinery. As this is an SME IPO, investors may also consider the typical liquidity risks associated with smaller exchange-listed companies, where trading volumes are often lower than those on the main board.