Metalic Technoforge IPO draws 28% subscription on day one

Metalic Technoforge launched its initial public offering on Tuesday, seeking to raise nearly ₹50 crore to fund capacity expansion. By 14:38 IST on the first day of the subscription period, the issue had filled just 28% of its allocated shares, with investors bidding for 12,20,800 shares against the 43,20,000 on offer.

The demand was driven entirely by retail participants, who booked 49% of their allotted portion. Non-institutional investors covered 17% of their allocation, while qualified institutional buyers had yet to submit any bids. This tepid response aligns with a grey market premium of zero, indicating shares are trading at the upper issue price of ₹77 with no immediate valuation premium or discount expected by traders.

Founded in 2016, Metalic Technoforge operates three facilities that handle processes ranging from forging and heat treatment to tooling and quality control. The company supplies closed-die forgings and precision-machined components—such as rings, ball studs, gears, and coupling assemblies—to original equipment manufacturers. Its end markets span the automotive, agricultural equipment, hydraulics, construction machinery, and general engineering sectors across both domestic and international markets.

The offering is structured as a 100% fresh issue of 64.88 lakh equity shares, with a price band of ₹72 to ₹77 per share and a face value of ₹10. Because there is no offer-for-sale component, the company will retain the entirety of the capital raised.

Metalic Technoforge plans to deploy ₹30.8 crore of the net proceeds to establish a fourth manufacturing unit and upgrade its existing plant in Rajkot. A further ₹6.72 crore is earmarked for the repayment or prepayment of certain borrowings, with the remaining funds allocated for general corporate purposes.

Smart Horizon Capital Advisors is serving as the book-running lead manager. The equity shares are slated to list on the NSE Emerge platform on 28 July.