New Delhi, April 1 Auto components maker Kay Jay Forgings Ltd has filed draft papers with the market regulator, Sebi, to raise ₹360 crore through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of shares worth ₹60 crore by promoters, bringing the total issue size to ₹360 crore, according to the draft red herring prospectus (DRHP).
The company may also consider a pre-IPO placement of up to ₹40 crore, and if undertaken, the size of the fresh issue will be adjusted accordingly.
The Ludhiana-headquartered company proposes to use the net proceeds from the fresh issue towards capital expenditure and debt reduction.
Of the total, approximately ₹118.8 crore will be used for setting up a new forging and machining facility along with a solar power plant, while ₹90.51 crore will be allocated towards debt payment, and the remaining funds will be used for general corporate purposes.
Kay Jay Forgings is a business-to-business precision engineering company engaged in manufacturing machined components, primarily catering to original equipment manufacturers (OEMs) in the automotive sector, as well as select non-automotive segments such as farm equipment, mining equipment, and consumer appliances.
The company is the largest supplier of crankshafts and crankshaft assemblies to OEMs in India for two-wheelers, with an estimated market share of around 36 per cent in FY25.
Its product portfolio includes crankshafts, lower bracket assemblies, gear-shift lever assemblies, propeller shafts, and steering yokes, among others.
The company operates six manufacturing facilities across Ludhiana in Punjab and Hosur in Tamil Nadu.
Its key customers include TVS Motor Company, Honda Motorcycle & Scooter India, and Mahindra & Mahindra.
On the financial front, the company reported revenue from operations of ₹750.46 crore in FY25, compared to ₹672.31 crore in the previous fiscal, while profit after tax rose to ₹29.01 crore from ₹24.12 crore.
PL Capital Ltd is the sole book-running lead manager for the issue.
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