Kay Jay Forgings Files Draft Papers With Sebi For Rs 360

The proposed IPO comprises a fresh issue of equity shares aggregating to Rs 300 crore and an offer for sale (OFS) of shares worth Rs 60 crore by promoters, taking the total issue size to Rs 360 crore, according to the draft red herring prospectus (DRHP).

The company may also consider a pre-IPO placement of up to Rs 40 crore, and if undertaken, the size of the fresh issue will be reduced accordingly.

Of the total, about Rs 118.8 crore will be used for setting up a new forging and machining facility along with a solar power plant, while Rs 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, mainly catering to original equipment manufacturers (OEMs) in the automotive sector, along with 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% in FY25.

On the financial front, the company reported a revenue from operations of Rs 750.46 crore in FY25, compared to Rs 672.31 crore in the previous fiscal, while profit after tax rose to Rs 29.01 crore from Rs 24.12 crore.