Veltech Forging IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Last Updated Date: Nov 16, 2022

Let’s have a detailed review of the company and analytics of the Veltech Forging Limited IPO release date, IPO offer price, subscription, Veltech Forging IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things. Stock Broker Complaints

Veltech Forging IPO Review & Ratings

IPO Ratings & Review
Criteria	Ratings
Industry Sentiments	7.9/10
Industry Ranking	7.2/10
Company Background	8.2/10
Company Reputation	7.7/10
Competitive Edge	7.2/10
Financial Statements	8.0/10
Popularity Index	7.9/10
Promoters Reputation	8.0/10
Retail Appetite	7.1/10
Top Brokers Review	7.8/10
Overall Ratings	7.5/10
Star Ratings	★★★★☆

Summary of Veltech Forging IPO

Veltech Forging IPO

Veltech Forging Limited is one of the well established forging units, situated in MIDC’s Industrial area at Murbad, Thane District, Maharashtra since more than 25 years. It started its business as a partnership firm in the name of M/S Vishwakarma Forging in Thane, Maharashtra.

In order to ensure quality in all aspects, the company obtained ISO 9001:2015 accreditations. The company is equipped to manufacture forgings weighing from 300 grams to 10 kg. per piece, and Up-setter up to 2.5″ in diameter. It supplies components in as forged, semi-finished & fully finished condition.

From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements

Their revenue from operations as a percentage of total income was 99.44% for the period ended September 30, 2019. Their revenue from operation as a percentage of total income was 99.95%, 99.91% and 99.86% respectively, for the fiscals 2019, 2018 and 2017.
The company’s other income mainly comprises of interest income, dividend income and gain on sale of property, plant & equipments. Other income, as a percentage of total income was 0.56% for the period ended September 30, 2019 and 0.05%, 0.09% and 0.14% respectively, for the fiscals 2019 and 2018 respectively.

The Promoters of this company are Mr. Virabhai Panchal & Mr. Bhavesh Panchal. The lead manager to the issue is ARYAMAN FINANCIAL SERVICES LIMITED. The Registrar to this issue is BIGSHARE SERVICES PRIVATE LIMITED.

List of Upcoming IPOs

Veltech Forging IPO Dates

The opening and the closing date of Veltech Forging IPO is not known yet.

Veltech Forging IPO Subscription

Day / Date	NII	RII	Total Subscription
1st Day –
2nd Day –
3rd Day –
4th Day –
Shares Offered or Net Issue

The shares subscribed by the public will be updated here.

Veltech Forging IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Veltech Forging IPO Listing Date

Below are the important dates / IPO events:

Basis of Allotment Finalization	–
Refunds Initiation	–
Credit of Shares to Demat Account	–
Share Listing Date	–

Veltech Forging IPO Price Band / Cash Price

The face value of each share is Rs.10, and the cash price of the IPO is Rs.[●].

Veltech Forging IPO Size

This Initial Public Issue of 22,02,000 Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.[●] lakhs.

Veltech Forging IPO Share Offering

Public Issue: The Fresh Issue of 22,02,000 Equity Shares by their Company of Rs.10 each at a price of Rs.[●] per equity share aggregating to Rs.[●] lakhs,

Net Issue : The Net Issue of 20,88,000 Equity Shares of Rs.10 each at Rs.[●] per Equity Share aggregating to Rs. [●] lakhs.

Veltech Forging Limited – Company Overview

Their company was incorporated as “Veltech Forging Private Limited” under the provisions of the Companies Act 1956 on July 07, 1994 with the main objective to acquire & takeover the running partnership business of the firm, M/s. Vishwakarma Forging.

The Company believes in maintaining good and cordial relation with its customers by ensuring no compromise in Quality Product and timeliness in which order gets executed, because of these Features Company is able to deal with big corporate end user clients of forged products.

Veltech Forging In-house Formulation

The Company has sophisticated in-house facilities with advanced equipment and latest technology to produce superior quality products as per the needs of the customers.

With advanced designs and manufacturing systems and a comprehensive technical support, The Company utilizes the state-of the art equipment and technology to develop the products to help the clients to get success in market place. The Company’s team works closely with their industrial clients to know their needs and to produce need satisfying products thereafter.

Veltech Forging – Business Line

The Primary business of the Company is manufacturing closed die forgings of critical shapes for Tractor, Automobile & other industries, to the specifications and drawings of the customers.

Company’s Forge Shop is well equipped with friction drop hammers, Die Shop, CAD facility for Die Designing, Metallurgical Laboratory to test raw material and forged components, Heat Treatment shop, Shot blasting and material Stock yard.

They have Integrated Manufacturing Capacity wherein they in-house manufacture dies according to the specifications & design of the client. Further company forge different type of products using various machines including Drop Hammer, Press etc. Further some products are further processed in Machining Section so that it gets converted into final part or component ready for assembling in further products.

Veltech Forging Products Specialization

They are specialized in manufacturing Closed Die forgings of critical shapes to the specifications and drawings of the customers. Their product portfolio includes more than 300 products having applications in different industries like Automobile, Constructions and safety solutions etc.

The product range include critical and non critical component like Gear, Shifter, Fork, Shafts, Pinions, Conn, Rod Cap, Gears, Flanges, Pulleys, Rocket Arm, Hubs, Ball Socket and Pins & Bolts etc.

Veltech Forging Limited: Business strategies

Augment their fund based capacities in order to scale up business operation
Diversify Customer Base
Increasing their Product Portfolio
Operational Efficiency & Quality Enhancement
Focus on consistently meeting quality standards

Veltech Forging Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Lakhs)
	30-Sep-19	31-Mar-19	Mar-18	31-Mar-17
Total Assets	3,172.12	3,541.56	2,913.47	2,644.79
Total Revenue	2,262.14	4,811.55	4,213.25	3,146.25
Total Expense	2,227.94	4,763.32	4,165.57	3,109.45
Profit After Tax	26.20	28.23	31.73	24.74

Earnings per Equity Share (in Lakhs)

Amount (in INR & Lakhs)
	30-Sep-19	Mar-19	31-Mar-18	31-Mar-17
Basic & Diluted	0.44	0.47	0.53	0.41

Veltech Forging IPO – Promoters

The Promoters of this company are:

Mr. Virabhai Panchal
Mr. Bhavesh Panchal

List of Related Parties (Key Managerial Personnel)

Mr. Sagar Sawant, Company Secretary and Compliance Officer
Mr. Suresh Shiad, Chief Financial Officer
Mr. Dilip Panchal, Works Manager
Mr. Dinesh Lade, Production Head

Interest in promotion of the Company

Their Company is currently promoted by the promoters in order to carry on its present business. Their Promoters is interested in their Company to the extent of their shareholding in their Company and the dividend declared, if any, by their Company.

Interests of Promoter in property of their Company

Their Promoters have confirmed that they does not has any interest in any property acquired by their Company within three years preceding the date of this Draft Prospectus or proposed to be acquired by their Company as on the date of this Draft Prospectus.

Veltech Forging IPO Offer Details or Issue Details

Particulars	No. Of Equity Shares
Equity Shares Offered	Up to 22,02,000 Equity Shares, aggregating up to Rs.[●] Lakhs
Of which:
Issue Reserved for the Market Maker	1,14,000 Equity Shares, aggregating up to Rs.[●] Lakhs
Net Issue to the Public	Up to 20,88,000 Equity Shares, aggregating up to Rs.[●] Lakhs
Of which:
	Up to 10,44,000 Equity Shares, aggregating up to Rs.2.00 Lakhs
	Up to 10,44,000 Equity Shares, aggregating up to Rs.2.00 Lakhs
Equity Shares outstanding prior to the Issue	60,00,000 Equity Shares
Equity Shares outstanding after the Issue	82,02,000 Equity Shares

Veltech Forging IPO Issue Object

These are the IPO Issue Objects of the company:

Funding Long Term Working Capital Requirements and
Funding Expenditure for General Corporate Purposes

Also, the listing of their Equity Shares on the SME Exchange, they believe, would provide liquidity to their shareholders, enhance their visibility and better their brand name.

Veltech Forging Limited: Key Strength

Experienced Management & Promoters
Long Standing Relationship with key Customers & Suppliers
Diverse Product Portfolio
Integrated Manufacturing Capacity
Consistency in Quality and Service Standards
Facility Designed to Serve Multiple Product Range

Veltech Forging IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

Experienced Management & Promoters;
Long Standing Relationship with key Customers & Suppliers;
Diverse Product Portfolio;
Integrated Manufacturing Capacity;
Consistency in Quality and Service Standards;
Facility Designed to Serve Multiple Product Range.

Veltech Forging IPO – Quantitative Factors

	Basic & Diluted EPS	RONW in %	NAV (Rs.)
31-Mar-17	0.41	3.46%	–
31-Mar-18	0.53	4.25%	–
31-Mar-19	0.47	3.64%	387.74

Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.[●] per Equity Share

Particulars	P/E ratio
Highest	26.6
Average	19.80
Lowest	5.90

Veltech Forging Limited: Competitive Peers

	Face Value (Rs.)	P/E	EPS (Basic) (Rs.)	Return on Net Worth (%)	NAV per share (Rs.)
Veltech Forging Limited	10	[●]	0.47	3.64%*	387.74
Listed Peers
Hilton Metal Forgings Limited	10	16.04	1.25	2.54	49.20
MM Forgings Limited	10	16.13	33.70	18.65	180.71
Bharat Forge Limited	2	22.24	23.00	19.84	115.94

Veltech Forging IPO Lead Managers

Lead Managers

ARYAMAN FINANCIAL SERVICES LIMITED
60, Khatau Building, Ground Floor,
Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001
Tel No.: +91 – 22 – 6216 6999
Email: ipo@afsl.co.in
Website: www.afsl.co.in
Investor Grievance Email: feedback@afsl.co.in
Contact Person: Mr. Jigar Sampat / Mr. Vatsal Ganatra
SEBI Registration No. INM000011344

Veltech Forging IPO Registrar to Offer

Registrar to the Offer

BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis
Makwana Road, Marol, Andheri East, Mumbai – 400 059
Tel. No.: +91 – 22 – 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Investor Grievance Email: investor@bigshareonline.com
Contact Person: Mr. Babu Raphael
SEBI Registration No.: INR000001385

Other Details:

Statutory Auditor – M/S. KRSHNA & ASSOCIATES
Legal Counsel to the Company – M/s. KANGA & CO. (ADVOCATE & SOLICITORS)
Bankers to the Company – APNA SAHAKARI BANK LTD. (MULTI STATE SCHEDULED BANK)

Veltech Forging IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review	Company Reputation	Competitive Edge	Financial Statement	Popularity Index	Promoters Reputation
Angel Broking	7.5/10	7.4/10	8.5/10	8.1/10	7.1/10
Sharekhan	7.2/10	7.1/10	8.6/10	8.1/10	7.2/10
Kotak Securities	7.3/10	7.5/10	8.4/10	8.1/10	7.3/10
ICICI Direct	7.3/10	7.3/10	8.7/10	8.1/10	7.1/10
IIFL	7.5/10	7.2/10	8.8/10	8.0/10	7.1/10
Edelweiss	7.5/10	7.4/10	8.4/10	8.3/10	7.2/10
Zerodha	7.4/10	7.1/10	8.5/10	8.1/10	7.0/10
5Paisa	7.1/10	7.1/10	8.4/10	8.1/10	7.1/10
Karvy	7.4/10	7.3/10	8.2/10	8.1/10	7.1/10
Motilal Oswal	7.1/10	7.1/10	8.6/10	8.3/10	7.2/10