DRHP Link: https://www.kayjayforgings.com/images/26-3-pdf/ipo/drhp.pdf
Ludhiana-headquartered auto components manufacturer Kay Jay Forgings Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India for its proposed initial public offering (IPO).
The proposed offering comprises a fresh issue of equity shares aggregating up to ₹300 crore and an offer for sale (OFS) of up to ₹60 crore by existing shareholders.
The company intends to utilise the net proceeds from the fresh issue towards capital expenditure and debt reduction. An amount of ₹118.8 crore is proposed to be deployed towards setting up a new forging facility, machining facility and solar power plant, while ₹90.51 crore will be used for repayment or prepayment of certain borrowings. The remaining funds will be allocated for general corporate purposes. The company may also consider a pre-IPO placement of up to ₹40 crore, in consultation with the book running lead manager, and if undertaken, the size of the fresh issue will be reduced accordingly.
Kay Jay Forgings is a B2B precision engineering company engaged in the manufacturing of machined components, primarily catering to original equipment manufacturers (OEMs) in the automotive sector, along with select non-automotive segments such as farm equipment, mining equipment and electronic home appliances. The company has developed a diversified portfolio of 286 products. Its product portfolio includes crankshafts and crankshaft assemblies as core offerings, along with lower bracket assemblies, lever kick-starter assemblies, gear-shift lever assemblies, propeller shafts, door hinges and steering yokes.
The company is the largest supplier of crankshafts and crankshaft assemblies to OEMs in India for two-wheelers, with an estimated domestic market share of approximately 36% in Fiscal 2025. Crankshafts for the two-wheeler segment have been a core product since inception and over time, the company has expanded its presence across three-wheelers, passenger vehicles, commercial vehicles, electric vehicles and non-automotive applications. Its evolution from a forging-focused player to an integrated forging and machining solutions provider has strengthened its customer relationships and positioned it as a key supplier to multiple OEMs.
The company currently operates six manufacturing facilities located in Ludhiana, Punjab and Hosur, Tamil Nadu, with an aggregate built-up area of approximately 46,795 square meters. Its backward-integrated manufacturing model is complemented by in-house logistics capabilities, enabling efficient operations and supply chain reliability. The company has maintained a strong quality track record, with a rejection rate of less than 1% reported by customers during the six-month period ended September 30, 2025 and the last three fiscals.
Among its key customers, TVS Motor Company Limited represents the longest-standing relationship, spanning over 37 years. Other customers include Honda Motorcycle & Scooter India, Mahindra & Mahindra, Bajajsons, Highway Roop Precision Technologies and Narasipur Auto Components. As of September 30, 2025, the company supplied approximately 11,587 crankshaft assemblies and 4,909 lower bracket assemblies on average per day to TVS Motor for its two-wheeler models.
Looking ahead, the company intends to leverage its existing forging and machining capabilities to diversify into lightweight forged and machined components, with a focus on aluminium, in line with OEM requirements to reduce weight, improve fuel efficiency and support compliance with emission norms. It is also exploring opportunities to develop aluminium-based components that are powertrain-agnostic, aligning with evolving mobility trends.
On the financial front, the company reported revenue from operations of ₹750.46 crore in FY25, up from ₹672.31 crore in FY24. Profit after tax (PAT) increased to ₹29.01 crore in FY25 from ₹24.12 crore in FY24, while EBITDA rose to ₹71.49 crore from ₹64.71 crore over the same period. For the six months ended September 30, 2025, PAT stood at ₹21.35 crore.
The global automotive forging market was valued at approximately USD 45.1 billion in 2025 and is projected to reach USD 65.8 billion by 2030, implying a CAGR of 7–9%. India continues to be a key global forging hub, supported by cost competitiveness, established manufacturing clusters in states such as Maharashtra, Tamil Nadu and Punjab, and strong linkages with domestic OEMs and global supply chains.
The company’s listed peers include Ramkrishna Forgings Limited, Kalyani Forge Limited, Saner Engineering Limited and Rolex Rings Limited.
The equity shares are proposed to be listed on BSE Limited and National Stock Exchange of India Limited. PL Capital Limited is acting as the sole book running lead manager to the issue.
